Sample Case

The generation and reconciliation of end reports is a common pain point; related processes are heavily manual and error prone. Even limited automation can quickly make a significant difference.  To support this use case it is possible to leverage existing, freely available XBRL taxonomies for end reporting and XBRL GL as a standardized “bridge” from corporate data. It looks like a perfect candidate for a DEXT implementation.

Necessary Technology and Resources
  • XBRL Global Ledger (XBRL GL)
  • XBRL taxonomies for end reporting purposes
  • WikiAccounts
  • XBRL Convergence
Example of “80/20” process: Multi-jurisdictional IFRS reporting
  • Company A reports its IFRS financial statements in Australia
  • The Chinese branch of Company A (Branch B) reports the company IFRS financial statements in China
  • Company A and its Chinese branch use
    • Two different accounting packages and/or
    • Two different charts of accounts (COAs)
    • Both Australia and China have created jurisdictional extensions to the IFRS taxonomy
Steps for Company A
  • Checks WikiAccounts and finds that mappings between a Standard Chart of Accounts (SCoA) and the base IFRS taxonomy already exist – created by another company, or a regulator, or a group of SMEs
  • Uploads its COA in WikiAccounts and maps its accounts to the corresponding SCoA accounts to leverage the existing mappings
  • Creates additional mappings specific to the Australian IFRS extension – and can choose to make these available to the community via the SCoA, or not
  • Downloads the mappings from WikiAccounts, and uses XBRL Convergence to generate the XBRL financial statements in IFRS AU format
Steps for Branch B
  • Uploads its COA in WikiAccounts (if different) and maps its accounts to the corresponding SCoA accounts to leverage the existing mappings to base IFRS
  • Creates the additional mappings specific to the Chinese IFRS extension
  • Downloads the mappings into XBRL Convergence to generate the XBRL financial statements in IFRS CAS (Chinese Accounting Standards) format
  • In XBRL Convergence Company A can also reconcile the AU and CAS versions of its financial statements

So now the first proof of concept has been delivered – and some substantial results as well. The idea behind DEXT and the Three Easy Steps methodology is that the know-how acquired can now be applied more extensively within the enterprise, to similar processes (applying exactly the same technology, resources and methodology) or to different processes (similar technology and methodology, different resources).

Examples of similar processes
  • Multi-GAAP external reporting – financial statements, press releases, proxies, tear sheets, data summaries
  • Cross-domain external reporting – tax, payroll, statutory, statistics, etc.
  • Internal reporting taxonomies, executive BI dashboards, KPIs, etc.
  • All these additional use cases are supported by WikiAccounts and XBRL Convergence
Application to different processes

Use cases in the area of end reporting creation and reconciliation should be the starting point for their significance and relative simplicity (80-20 rule). They are based on

  • One simple type (or, as it is commonly defined, “profile”) of source data: Chart of Accounts/Trial Balance
  • One simple type  of business rules applied to the profile: summarization/aggregation rules from accounts to reporting concepts defined in XBRL taxonomies that enable the generation of different end reports

The same methodology and very similar technology can be used to support different, more complex processes, also very relevant for most/all companies. This is where WikiLogics and XBRL Gears come into play:

Same approach, different complexity… but also more flexibility to cover a broad range of use cases, and more value as a consequence.

Take advantage of the DEXT solution in Three Easy Steps.