SEC XBRL Filing Requirements: An Instructional Case on Tagging Financial Statement Disclosures

2010 ◽  
Vol 25 (3) ◽  
pp. 489-511 ◽  
Author(s):  
Ernest Capozzoli ◽  
Stephanie Farewell
Keyword(s):  
Oil And Gas ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Publicly Traded ◽  
Item Level ◽  
Interactive Data ◽  
The U.S

ABSTRACT: On January 20, 2009, the U.S. Securities and Exchange Commission (SEC) released Rule 33-9002 for the phase-in of interactive data (SEC 2009a). An important component of this rule is the phase-in of detailed tagging of financial statement note disclosures. Tagging is the process of associating a taxonomy element with a financial statement concept for a particular context. While some of the filers have participated in the SEC Voluntary Filing Project and prepared instance documents tagged at the line item level most have not prepared detail-tagged notes to accompany the financial statements (SEC 2005; Choi et al. 2008). This case discusses the structure of disclosures, as they exist in the 2009 U.S. GAAP Taxonomy, followed by a discussion of dimensional extensions and concludes with an example of block and detailed disclosure tagging using Rivet Software’s Dragon Tag (Rivet 2009). The example uses the capitalized costs disclosure for Anadarko Petroleum, a publicly traded company. Following the example, the case requires students to block and detail tag the capitalized costs disclosure for Dig Deep, a hypothetical oil and gas company. By completing the case, students develop an understanding of the current U.S. GAAP taxonomy, skills relating to mapping and tagging processes, and make use of a commonly used XBRL taxonomy and instance document creation program.

Adios! Airways: An Assignment on Mapping Financial Statements to the U.S. GAAP XBRL Taxonomy

2010 ◽  
Vol 25 (3) ◽  
pp. 465-488 ◽  
Author(s):  
Roger Debreceny ◽  
Stephanie Farewell
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Annual Reports ◽  
Business Reporting ◽  
Instructional Resource ◽  
Mapping Process ◽  
Interactive Data ◽  
The U.S

ABSTRACT: XBRL, based on XML, is an Internet language for disclosure of business reporting language. XBRL is the technological foundation for the interactive data mandate by the Securities and Exchange Commission (SEC). The mandate requires corporate filers to disclose data in quarterly and annual reports in XBL. A key building block supporting the mandate is a substantial U.S. GAAP XBRL taxonomy that encapsulates most of the reporting concepts found in financial reporting. Filers must align their existing reports to the taxonomy. The accuracy of mapping financial statement line items to the U.S. GAAP taxonomy is of fundamental importance. Mapping errors may be as simple as mapping to an incorrect taxonomy concept, which should be discovered during review. Ineffective mapping may lead to unnecessary extensions, which hinders comparability. This instructional resource guides students through the steps in mapping financial statement line items to the taxonomy. While the case does not require students to create an extended taxonomy, it does require completion of a spreadsheet detailing the mapping process that is typical of practice. In addition, the resource provides a checklist that users can refer to during the mapping process.

Significant Differences in Proved Reserves Estimates Using SPE/WPC Definitions Compared to United States Securities and Exchange Commission (SEC) Definitions

2005 ◽  
Vol 8 (06) ◽  
pp. 520-527 ◽  
Author(s):  
D.R. Harrell ◽  
Thomas L. Gardner
Keyword(s):  
United States ◽  
Oil And Gas ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Classification Systems ◽  
Direct Function ◽  
Oil Companies ◽  
Publicly Owned ◽  
Hydrocarbon Reserves ◽  
The U.S

Summary A casual reading of the SPE/WPC (World Petroleum Congresses) Petroleum Reserves Definitions (1997) and the U.S. Securities and Exchange Commission(SEC) definitions (1978) would suggest very little, if any, difference in the quantities of proved hydrocarbon reserves estimated under those two classification systems. The differences in many circumstances for both volumetric and performance-based estimates may be small. In 1999, the SEC began to increase its review process, seeking greater understanding and compliance with its oil and gas reserves reporting requirements. The agency's definitions had been promulgated in 1978 in connection with the Energy Policy and Conservation Act of 1975 and at a time when most publicly owned oil and gas companies and their reserves were located in the United States. Oil and gas prices were relatively stable, and virtually all natural gas was marketed through long-term contracts at fixed or determinable prices. Development drilling was subject to well-spacing regulations as established through field rules set by state agencies. Reservoir-evaluation technology has advanced far beyond that used in 1978;production-sharing contracts were uncommon then, and probabilistic reserves assessment was not widely recognized or appreciated in the U.S. These changes in industry practice plus many other considerations have created problems in adapting the 1978 vintage definitions to the technical and commercial realities of the 21st century. This paper presents several real-world examples of how the SEC engineering staff has updated its approach to reserves assessment as well as numerous remaining unresolved areas of concern. These remaining issues are important, can lead to significant differences in reported quantities and values, and may result in questions about the "full disclosure" obligations to the SEC. Introduction For virtually all oil and gas producers, their company assets are the hydrocarbon reserves that they own through various forms of mineral interests, licensing agreements, or other contracts and that produce revenues from production and sale. Reserves are almost always reported as static quantities as of a specific date and classified into one or more categories to describe the uncertainty and production status associated with each category. The economic value of these reserves is a direct function of how the quantities are to be produced and sold over the physical or contract lives of the properties. Reserves owned by private and publicly owned companies are always assumed to be those quantities of oil and gas that can be produced and sold at a profit under assumed future prices and costs. Reserves under the control of state-owned or national oil companies may reflect quantities that exceed those deemed profitable under the commercial terms typically imposed on private or publicly owned companies.

Interoperability of XBRL Financial Statements in the U.S.

2012 ◽  
pp. 129-144
Author(s):  
Hongwei Zhu ◽  
Harris Wu
Keyword(s):  
Global Financial Crisis ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Data Elements ◽  
The Global Financial Crisis ◽  
Practical Implications ◽  
The U.S

In the wake of the global financial crisis, a pressing need exists for improving investor friendliness, especially the transparency and interoperability of the financial statements of public companies. eXtensible Business Reporting Language (XBRL) and XBRL taxonomies can accomplish this objective. In the U.S., the Securities and Exchange Commission (SEC) has mandated that all public companies must file their financial statements using XBRL and the U.S. Generally Accepted Accounting Principles (GAAP) taxonomy according to a phased-in schedule. Are the XBRL-based financial statements interoperable? This question is addressed by analyzing all of the annual XBRL financial statements filed to the SEC as of February 26, 2010. On average, 63% of data elements are not comparable between a pair of statements. The incomparability is partly caused by issues related to the GAAP taxonomy and misuse of the taxonomy by companies. The results have practical implications that will help improve the quality of financial data.

Financial Restatements and Shareholder Ratifications of the Auditor

2009 ◽  
Vol 28 (1) ◽  
pp. 225-240 ◽  
Author(s):  
Li-Lin Liu ◽  
K. Raghunandan ◽  
Dasaratha Rama
Keyword(s):  
Audit Quality ◽  
Empirical Support ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Shareholder Voting ◽  
Financial Restatements ◽  
Preceding Period ◽  
Significant Attention ◽  
The U.S ◽  
Selection Of

SUMMARY: Regulators and legislators have focused significant attention on financial statement restatements in recent years, and the U.S. Securities and Exchange Commission (SEC) and financial statement users view restatements as audit failures. The SEC (2000, 2003a) suggests that shareholder voting on auditor ratification will be impacted by perceptions of audit quality. In this paper we examine shareholder voting on auditor ratifications in 2005 or 2006 following restatement announcements by SEC registrants. We find that shareholders are more likely to vote against auditor ratification after a restatement when compared with votes at (1) firms without restatements or (2) restating firms in the preceding period. Overall, the results provide empirical support to the SEC's assertion that shareholder voting on auditor ratification will be related to perceptions of audit quality, and also support recent actions by shareholder activists to require all firms to submit the selection of the auditor for a ratification vote by shareholders.

Income Conservatism in the U.S. Technology Sector

2011 ◽  
Vol 25 (2) ◽  
pp. 285-314 ◽  
Author(s):  
Uday Chandra
Keyword(s):  
Financial Statements ◽  
Cash Flows ◽  
Data Availability ◽  
Financial Statement ◽  
Litigation Risk ◽  
Technology Sector ◽  
Technology Firms ◽  
Conservative Accounting ◽  
Accounting Accruals ◽  
The U.S

SYNOPSIS I investigate the extent and nature of income conservatism in the financial statement numbers of firms in the U.S. technology sector. Technology firms are predicted to have greater income conservatism than other U.S. firms because they are subject to both higher shareholder litigation risk and conservative accounting standards such as SFAS 2. In the absence of a generally accepted measure of conservatism, I examine several proxies, including loss incidence and accounting rates of return, operating cash flow and nonoperating accrual levels, and regression coefficients from the earnings-return model in Basu (1997). Relative to other companies, technology firms' earnings are characterized by higher (and intertemporally increasing) levels of both conditional and unconditional conservatism. These differences are both statistically and economically significant. Further analysis suggests that technology firms' higher conservatism results primarily from lower operating cash flows due to R&D expensing and more income-decreasing accounting accruals linked to litigation risk. The results of this study are potentially useful to financial analysts, researchers, regulators, managers, and other users of financial statements. Data Availability: Data are available from public sources.

scholarly journals Financial Statement Analysis of Nanjing Yinfei company based on Harvard Analytical Framework

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Xin Li ◽  
Zhenggan Cai ◽  
Xiaoyan Wu ◽  
Long Chen
Keyword(s):  
Financial Analysis ◽  
Financial Statements ◽  
Analytical Framework ◽  
Operating Conditions ◽  
Growth Potential ◽  
Financial Statement ◽  
Publicly Traded ◽  
Financial Status ◽  
Target Company ◽  
Future Growth

The Harvard Analytical Framework is a financial analysis framework jointly proposed by three Harvard economists. Analysis of financial statements based on the Harvard framework not only helps to identify problems in the business process, but also to predict future growth potential. In this paper, the publicly traded company Nanjing Sonic was selected as the target company for the study. The Harvard Analytical Framework was adopted as an analytical tool to analyze the operating conditions and financial status of the target company for the years 2015-2019. A comparison with similar companies reveals the problems that exist. Finally, we forecast the future development prospects of the company.

Lakeview Hotel Investment Corp.

2014 ◽  
Vol 30 (2) ◽  
pp. 105-112
Author(s):  
Fred Pries ◽  
Sandra Scott
Keyword(s):  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Western Canada ◽  
Graduate Courses ◽  
Publicly Traded ◽  
Amount Of Information ◽  
Analytical Skills ◽  
Related Party Transaction ◽  
Hotel Investment

ABSTRACT Lakeview Hotel Investment Corp. (LHIC) is a publicly traded owner and operator of hotel properties located primarily within smaller centers in western Canada. The case provides students with the opportunity to develop research and analytical skills by investigating related party disclosures found within LHIC's financial statements. Students are asked to identify related parties and analyze the transactions between LHIC and its related parties. They are then directed to comment on the underlying value of the transactions. This case illustrates both how much can be learned by careful reading and analysis of related party transaction disclosures and also how many questions about related party transactions remain unanswered based on the information contained in financial statements. Although all information used in the case is publicly available, the degree of difficulty can be adjusted for use within undergraduate and graduate courses by varying the amount of information provided to students. This case is suitable for intermediate financial accounting, accounting theory, and financial statement analysis courses.

Interoperability of XBRL Financial Statements in the U.S.

2011 ◽  
Vol 7 (2) ◽  
pp. 19-33 ◽  
Author(s):  
Hongwei Zhu ◽  
Harris Wu
Keyword(s):  
Global Financial Crisis ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Business Reporting ◽  
Data Elements ◽  
The Global Financial Crisis ◽  
The U.S

In the wake of the global financial crisis, a pressing need exists for improving investor friendliness, especially the transparency and interoperability of the financial statements of public companies. eXtensible Business Reporting Language (XBRL) and XBRL taxonomies can accomplish this objective. In the U.S., the Securities and Exchange Commission (SEC) has mandated that all public companies must file their financial statements using XBRL and the U.S. Generally Accepted Accounting Principles (GAAP) taxonomy according to a phased-in schedule. Are the XBRL-based financial statements interoperable? This question is addressed by analyzing all of the annual XBRL financial statements filed to the SEC as of February 26, 2010. On average, 63% of data elements are not comparable between a pair of statements. The incomparability is partly caused by issues related to the GAAP taxonomy and misuse of the taxonomy by companies. The results have practical implications that will help improve the quality of financial data.

XBRL Mandate: Thousands of Filing Errors and So What?

2013 ◽  
Vol 27 (1) ◽  
pp. 61-78 ◽  
Author(s):  
Hui Du ◽  
Miklos A. Vasarhelyi ◽  
Xiaochuan Zheng
Keyword(s):  
Financial Reporting ◽  
Securities And Exchange Commission ◽  
Data Availability ◽  
Regulatory Body ◽  
Data Reporting ◽  
Interactive Data ◽  
Disclosure Requirement ◽  
A Company ◽  
The U.S

ABSTRACT Since the mandate by the U.S. Securities and Exchange Commission (SEC) to begin interactive data reporting in June 2009, according to XBRL Cloud, an XBRL product and service provider, more than 4,000 filing errors have been identified. We examine the overall changing pattern of the errors to understand whether the large number of errors may hamper the transition to interactive data reporting. Using a sample of 4,532 filings that contain 4,260 errors, we document a significant learning curve exhibited by the XBRL filers. Specifically, we find that the number of errors per filing is significantly decreasing when a company files more times, suggesting that the company filers or the filing agents many companies use learn from their experiences and therefore the future filings are improved. Our findings provide evidence to encourage the regulatory body, the filers, and the XBRL technology supporting community to embrace the new disclosure requirement in financial reporting. The significantly decreased error pattern also helps address the information users' concerns regarding the data quality of XBRL filings. Data Availability: Data are publicly available from the sources identified in the study.

How Much Does IFRS Cost? IFRS Adoption and Audit Fees

2012 ◽  
Vol 88 (2) ◽  
pp. 429-462 ◽  
Author(s):  
Emmanuel T. De George ◽  
Colin B. Ferguson ◽  
Nasser A. Spear
Keyword(s):  
Financial Reporting ◽  
Small Firms ◽  
Financial Statements ◽  
Audit Fees ◽  
Securities And Exchange Commission ◽  
Data Availability ◽  
Publicly Traded ◽  
Financial Reporting Standards ◽  
Response Data ◽  
Ifrs Adoption

ABSTRACT This study provides evidence of a directly observable and significant cost of International Financial Reporting Standards (IFRS) adoption, by examining the fees incurred by firms for the statutory audit of their financial statements at the time of transition. Using a comprehensive dataset of all publicly traded Australian companies, we quantify an economy-wide increase in the mean level of audit costs of 23 percent in the year of IFRS transition. We estimate an abnormal IFRS-related increase in audit costs in excess of 8 percent, beyond the normal yearly fee increases in the pre-IFRS period. Further analysis provides evidence that small firms incur disproportionately higher IFRS-related audit fees. We then survey auditors to construct a firm-specific measure of IFRS audit complexity. Empirical findings suggest that firms with greater exposure to audit complexity exhibit greater increases in compliance costs for the transition to IFRS. Given the renewed debate about whether the Securities and Exchange Commission (SEC) should mandate IFRS for U.S. firms, our results are of timely importance. Data Availability: Data are publicly available from the sources identified in the paper. Survey response data are available from the authors upon request.

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