XBRL Canada Welcomes the Announcement of the Red Tape Reduction Commission

TORONTO, March 10 /CNW/ - The announcement in the Federal Budget Document tabled in the House of Commons on March 4 that includes a Red Tape Reduction Commission is a welcome move for Canadian business. The complexities of compliance mandated by government agencies are substantial and often redundant.
At present, companies who file with the federal departments and agencies must file a diverse number of different reports, usually in different formats. The inefficiency of this approach costs reporting companies substantial dollars in unnecessary expense for systems maintenance, multiple data input and completion of various forms.
Leveraging the efficiencies of a unified system employing XBRL could save considerable dollars. It is important to note that XBRL is an open standard currently in various stages of use worldwide.
Over twenty countries have implemented programs to reduce the compliance burden and red tape for companies reporting to government agencies. In several of these countries, XBRL is well recognized as an important part of achieving efficiency within these programs.
The Netherlands, for example, recognized this several years ago and has been implementing XBRL throughout government filings. The estimated value of reducing reporting burdens is approximately (euro)400 million per annum. In addition, they say full implementation of XBRL, "with its wide incorporation across relevant financial accounting software packages will result in substantial time savings to business - up to 33% compared to the time required for traditional annual accounts." A similar program is underway in Australia and under consideration in other countries.
The adoption of XBRL for standardizing the reporting of data is a feasible and cost-effective way to achieve the objective of substantially reducing the cost of compliance by Canadian companies. XBRL Canada will welcome the opportunity to present the efficiencies of XBRL to the Red Tape Reduction Commission as part of its initiative.

XBRL Canada is a not-for-profit consortium, funded and supported by the Canadian Institute of Chartered Accountants, formed to foster and encourage the use of XBRL for greater efficiency in Canadian Business.

For further information: XBRL Canada, Gerald Trites, Project Director, (416) 602-3931, Email: gtrites@xbrl.ca

IFRS and XBRL in the Oil and Gas Industry - What you need to know now

CALGARY, Mar. 9 /CNW/ - XBRL Canada is holding a seminar on this important topic in Calgary on April 7th at 8:00AM.
There is an urgent need to prepare for the adoption of IFRS in Canada and to understand how the emerging corporate reporting landscape will be impacted by XBRL (eXtensible Business Reporting Language). The SEC in the U.S. has already enacted regulations that cover mandatory reporting in XBRL. In 2011 these SEC rules will have significant implications for Canadian companies as foreign filers using IFRS and the associated IFRS XBRL taxonomy.
This seminar focuses on the planning issues that are of concern to Canadian Oil and Gas companies in preparing for the adoption of IFRS and XBRL. It will address key questions such as;

-   What are the implications of the current and emerging regulations on
        IFRS and XBRL in Canada and the U.S.?
    -   What has been the experience of other companies that have already
        adopted IFRS and XBRL in other parts of the world?
    -   How suitable is the current IFRS XBRL taxonomy for Oil and Gas
        companies and how could the taxonomy be impacted by IASB Extractive
        Activities project?
    -   What resources are available to help companies as they move to
        implement IFRS and XBRL?

Global experts in IFRS and XBRL will be speaking at the seminar. Solution providers will also demonstrate their products and will be available to discuss best practices.
Cost of the seminar is $50 per person. Registration is available through the XBRL Canada website at www.xbrl.ca.
XBRL Canada is supported and administered by the Canadian Institute of Chartered Accountants

For further information: XBRL Canada, Gerald Trites, Project Director, (416) 602-3931, Email: gtrites@xbrl.ca

Red Tape Reduction Commission
by Gerald Trites

The Federal Budget tabled yesterday contained an interesting announcement that is very pertinent to what the XBRL community is trying to accomplish. The announcement was as follows:

"Red Tape Reduction Commission: A commission, involving both parliamentarians and private sector representatives, will be established to review federal regulations in areas where reform is most needed to reduce the compliance burden and provide specific recommendations for improvement."

The Budget report tabled yesterday goes on to say:

"Reducing red tape for businesses is an ongoing challenge that requires continued attention. The Canadian Federation of Independent Business (CFIB) estimates that businesses in Canada currently spend over $30 billion each year complying with regulations."

At present companies who file with the federal departments and agencies must file a diverse number of different reports, usually in different formats. The inefficiency of this approach costs the filers millions of dollars, perhaps billions, in unnecessary expense for systems maintenance, data input and form completion. If they were able to use a standard system - XBRL - they could save considerably in these areas.

Over twenty countries around the world have implemented programs to reduce the compliance burden and red tape for companies dealing with the governments. In several of these countries, XBRL has been considered and/or recognized as a way to assist with achieving the goals of these programs.

The Netherlands, for example, recognized this several years ago and has been implementing XBRL across the board for government filings.  "It was in response to concern for the enormous incidence of duplication in reporting that the Netherlands Government in 2004 launched a major initiative known as the Dutch Taxonomy Project."

"In their progress report to the Dutch Government in April 2006 officials indicated that from January 2007 the majority of small and medium sized businesses would be required only to provide annual accounts data to the Chamber of Commerce (thus replacing traditional multiple reporting arrangements). The XBRL taxonomy will make it possible to supply the data to other institutions with 'just one push of the button'. The estimated value of burden reduction from this measure is put at approximately €400 million per annum. In addition, full implementation of the Dutch XBRL taxonomy in 2007, with its wide incorporation across relevant financial accounting software packages will result in substantial time savings to business- up to 33% compared to the time required for traditional annual accounts." (emphasis added). A similar program is underway in Australia and under consideration in other countries.

The adoption of XBRL for rationalizing the reporting of data to governments is a feasible and cost-effective way to achieve the laudable objective of substantial reduction in the cost of compliance by Canadian companies. The new Red Tape Reduction Commission should give top priority to its consideration.

XBRL Canada to Hold a Webinar on Mar 24 dealing with IFRS and XBRL Implementation


TORONTO, Feb. 19 /CNW/ - XBRL Canada is holding a webinar on this important topic on March 24th from 12:00 Noon - 1:00 PM.
The SEC Rule regarding XBRL contains a clause stating that "all foreign private issuers that prepare their financial statements in accordance with IFRS as issued by the IASB, will be subject to the same interactive data reporting requirements beginning with a periodic report on Form 10-Q, Form 20-F or Form 40-F containing financial statements for a fiscal period ending on or after June 15, 2011."
In Canada, all companies are required to adopt IFRS beginning with January 1, 2011. This means that IFRS must be applied to the first interim financial statements in 2011.
The end result is that all Canadian Cross-listed companies, which number approximately 350, will be required to adopt both IFRS and XBRL, using the IFRS taxonomy, in 2011.

For the rest of the press release, please follow this link.

Forthcoming XBRL Events

2010 is shaping up to be a big year for XBRL in Canada. XBRL adoption driven by the SEC rules has already started and will escalate between now and mid 2011. Other organizations are showing an interest in XBRL for internal purposes. As a result, XBRL Canada is planning a series of events:

March 24, 2010. There will be a Webinar featuring Paul Cherry, veteran of International Accounting Standard Setting, discussing IFRS adoption, along with Wasim Thaha who will comment on the related XBRL implications. This webinar will be the first of a series.

April 7, 2010 will see a seminar in Calgary devoted to the relationship between IFRS and XBRL adoption for the Oil and Gas Industry.

Further information about these events will be forthcoming shortly. Other events are in the early planning stage.

And from April 20 - 22, the 20th XBRL International Conference will be held in Rome with a theme of "Linking Businesses, Public Regulators & Citizens." This event will be of particular interest to those who are considering XBRL adoption for governmental purposes beyond securities regulation, an area where Europe has been a leader.

Stay tuned to this blog and the XBRL Canada Website for further details and additional events.

New IAASB Publication on XBRL


The International Auditing and Assurance Standards Board (IAASB) has released a new awareness document explaining the relationship of IAASB Standards and XBRL and pointing out that the current standards were not developed with XBRL in mind. As the press release says, 


"Recognizing the growing international use of Extensible Business Reporting Language (XBRL)—a language for the electronic communication of business and financial data that is changing business reporting around the world—the staff of the International Auditing and Assurance Standards Board (IAASB) has developed a new question-and-answer publication. It is designed to raise awareness about how XBRL-tagged data is prepared and how it may affect financial reporting.
Entitled XBRL: The Emerging Landscape, the publication explains that the IAASB’s current International Standards on Auditing (ISAs) were not developed with XBRL in mind and, accordingly, do not require auditors to perform procedures on XBRL-tagged data as part of a financial statement audit. It clarifies how XBRL may lead to a demand for various types of assurance and related services engagements, and describes the scope of the IAASB’s planned consultations to determine whether to develop a new international pronouncement addressing XBRL.
“As more and more financial authorities begin to require or permit entities to provide financial information in XBRL, now is the time to help educate users about some XBRL fundamentals, and for the IAASB to explore whether and how a related international standard might help address assurance needs,” says James Gunn, IAASB Technical Director. “A number of organizations are involved in XBRL initiatives and we look forward to hearing the viewpoints of preparers, users, regulators, national standard-setters, auditors, and others on this important topic,” adds Mr. Gunn.
The publication is available to download free of charge from the IAASB section of IFAC’s Publications and Resources site: web.ifac.org/publications."

Survey Shows Companies in the US are getting ready for XBRL

XBRL US, the XML standard setter for business information reporting in the U.S., announced today that public companies are heeding the advice to "start early" in preparing for XBRL adoption, according to a joint survey with the American Institute of Certified Public Accountants (AICPA). 73% of respondents said that they have begun preparations for adoption of XBRL. Most of those surveyed, 93%, had at least a basic knowledge of XBRL. See a report on the survey at this site.

The situation is very different in Canada, where in a recent survey, more than 80% of respondent companies had little or no understanding of XBRL. Cross listed Canadian companies will be required to conform to the SEC requirements. They are scaling in over the next few years, but the big effect will take place when IFRS is adopted next year. Companies filing with the SEC in IFRS will be required to file in XBRL.

Data in the Next Decade

There is a time for predictions or at least thinking more deeply about the future and often that time is at the beginning of a new year and especially a new decade. Technology News has come up with some predictions about the "tens" which contain the following:

"As we move through our lives, we'll leave more and more digital detritus. Some of it will resemble what we share online today. Some will be emitted quietly by devices, just as mobile phones can signal their location.
We'll also have access to more data about the world around us, dwarfing the real-time stock quotes, government statistics, scientific databases and other information stores available today.

In the next decade as conjured by Forrester Research analyst James McQuivey, all that information will be available instantaneously, anywhere. He imagines spotting an acquaintance at a conference and having at his fingertips links to the person's most recent research, plus a reminder of her husband's name."

This is dead on in terms of existing trends and the logical course of events as we move forward into the next decade. Companies are moving to cloud computing. Computing capacity will grow exponentially because of this fact. The capacity for handling data, raw and otherwise, will also grow tremendously. New technologies for adding context to that data, such as XBRL, will come into their own. People will rely on selecting relevant data and running analytics against it rather than poring over prepared reports. The behavioural implications of this trend are most intriguing.

Analysts, investors and others will become accustomed to drawing upon the data they find most relevant to their decision making needs. Over time, they will develop customized analyses and simply refresh those analyses with fresh data when they need to review their decisions.

Over the next decade, the growth in the power of information systems will be remarkable, but the behavioural changes prompted by that growth will be even more so. Check out the predictions by Technology Newsworld.