The Financial Reporting System and XBRL

THE FINANCIAL REPORTING SYSTEM
The primary recipients of financial statement information are external users,

such as stockholders, creditors and government agencies. They require information
that allows them to observe trends in the performance over time and to make
comparisons between different organizations, thus financial reporting information
must be must be prepared and presented by all organizations in a manner that is
generally accepted and understood by external users.
Sophisticated users general audience with relatively homogeneous information
needs. The users of the financial understand the conventions and accounting
principles that are applied and that the statements have information content that is
useful.
FINANCIAL REPORTING PROCEDURES

The process begins with a clean slate at the start of the new fiscal year. Only
the balance sheet (permanent) accounts are carried forward the previous year. From
this point, the following steps occur:
1. Capture the transaction. Within each transaction cycle, transactions are
recorded in the appropriate transaction file.
2. Record in special journal. Frequently occurring classes of transactions, such as
sales, are captured in special journals. Those that occur infrequently are recorded in
the general journal or directly on the journal voucher.
3. Post to subsidiary ledger. The details of each transaction are posted to the
affected subsidiary accounts.
4. Post to general ledger. Periodically, journal vouchers, summarizing the entries
made to the special journals and subsidiary ledgers, are prepared and posted to the
GL accounts. The frequency of updates to the GL will be determined by the degree
of the system integration.
5. Prepare the unadjusted trial balance. At the end of the accounting period,
the ending balance of each account in the GL is placed in a worksheet and
evaluated in total for debit-credit equality.
6. Make adjusting entries. Adjusting entries are made to the worksheet to correct
errors and to reflect unrecorded transactions during the period, such as
depreciation.
7. Journalize and post adjusting entries. Journal vouchers for the adjusting
entries are prepared and posted to the appropriate accounts in the GL.
8. Prepare the adjusted trial balance. From the adjusted balances, a trial
balance is prepared that contains all the entries that should be reflected in the
financial statements.
9. Prepare the financial statements. The balance sheet, income statement, and
statement of cash flows are prepared using the adjusted trial balance.
10. Journalize and post the closing entries. Journal vouchers are prepared for
entries that close out the income statement (temporary) accounts and transfer the
income or loss to retained earnings. Finally these entries are posted to the GL.
11.
Prepare the post-closing trial balance. A trial balance worksheet
containing only the balance sheet accounts may now be prepared to indicate the
balances being carried forward to the next accounting period.
yung description pwede na sigurong alisin kung masyadong mahaba. Ni.type ko

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XBRL Reengineering Financial Reporting

DEFINITION OF TERMS:
eXtensible Business Reporting Language- is the Internet standard specifically
designed for business reporting and information exchange. Its objective is to
facilitate the publication, exchange, and processing of financial and business
information. It is a derivative of another Internet standard eXtensive Markup
Language (XML).
eXtensive Markup Language (XML) is a metalanguage for describing markup
languages. The term extensible means that any markup language can be created
using XML. This includes the creation of markup languages capable of storing data
in relational form in which tags (or formatting commands) are mapped to data
values. Thus, it can be used to model the data structure of an organizations internal
database.
COMPARISON OF HTML AND XML DOCUMENTS
M
ORE ON XBRL
It was designed to provide the financial community with a standardized method
for preparing, publishing, and automatically exchanging financial information,
including financial statements of publicly held companies.
It is typically used for reporting aggregated financial data, but can also be applied
to communicating information pertaining to individual transactions.
OVERVIEW OF XBRL REPORTING PROCESS
TERMINOLOGIES
XBRL Taxonomy these are classification schemes that are compliant with XBRL
specifications to accomplish a specific information exchange or reporting objective
such as filing with the SEC. It specifies data to be included in an exchange or report.
XBRL Instance documents are generated from tags associated with the data
generated from computer programs that recognize and interpret it.

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The Financial Reporting System and XBRL

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THE FINANCIAL REPORTING SYSTEM

The primary recipients of financial statement information are external users,

FINANCIAL REPORTING PROCEDURES

yung description pwede na sigurong alisin kung masyadong mahaba. Ni.type ko

XBRL Reengineering Financial Reporting

COMPARISON OF HTML AND XML DOCUMENTS

OVERVIEW OF XBRL REPORTING PROCESS

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