Chapter 9 - Reporting processes and extensible business reporting language (XBRL). After reading this chapter, you should be able to: Explain how data warehouses are created and used, describe the basic components of business intelligence and how they are utilized in a firm, describe how digital dashboards allow for continuous tracking of key metrics, explain how XBRL works and how it makes business reporting more efficient.
Trang 1Reporting Processes and
eXtensible Business Reporting Language (XBRL)
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Trang 2• LO#1 Explain how data warehouses are created and
used
• LO#2 Describe the basic components of business
intelligence and how they are utilized in a firm
• LO#3 Describe how digital dashboards allow for
continuous tracking of key metrics
• LO#4 Explain how XBRL works and how it makes
business reporting more efficient
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Trang 3Data Warehouses
information gathered from an assortment
of external and operational (i.e, internal)
databases to facilitate reporting for
decision making and business analysis
repository of the firm's historical data, or in other words, its corporate memory and
will often serve as an archive of past firm
Trang 4Data Warehouses
periods of time and data warehouses can run data queries
without slowing down the performance of the company’s
operational systems.
provide necessary insight, particularly in the case of customer
relationship management (CRM) and supply chain management
(SCM) systems.
– What are customers buying? What did they buy in a recession? What did they buy after a natural disasters? What do they buy as their income goes up?
such as those often used in managerial accounting.
analysis reports, and reports that show actual performance are compared to budgeted information
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Trang 5Model of Data Warehouse
Design
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Trang 6Business Intelligence
• Business Intelligence is a
computer-based technique for accumulating and
analyzing data from databases and data
warehouses to support managerial
decision making
intelligence is by use of a web crawler,
which systematically browses the World
Wide Web in a systematic way, collecting
Trang 7Process of Business
Intelligence
information, external information or both) from a variety of sources
trends from that information to gain
understanding and meaning
ones, based on the information gained.
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Trang 8Examples of Business
Intelligence
use business intelligence to track its
competitor’s prices over different times,
days of the week, etc.?
intelligence to price an initial public
offering of stock for a firm in the Internet
retail industry?
current economic and stock market
conditions, assess how other Internet retail
firms are performing in the stock market and assess how initial public offerings have
recently performed.
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Trang 9Data Mining
• Data mining is one technique used to
analyze data for business intelligence
purposes Data mining is a process using sophisticated statistical techniques to
extract and analyze data from large
databases to discern patterns and trends that were not previously known
stock prices to assist technical financial stock market analysts, or in commodities or
Trang 10Data Mining
relationships and some of them represent spurious correlations Data mining must
be coupled with common sense to
interpret the statistical relationships found
sales are correlated with drownings
suggesting that as ice cream sales increase, the number of drownings also increase That does not mean that ice cream sales cause
drownings or that drownings cause more ice cream sales, but rather that warm weather
caused (or had an effect on) both
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Trang 11Digital Dashboards
the firm process or performance indicators
or metrics to monitor critical performance
are outstanding, budget variances, and days without an accident on the assembly line, etc are all examples of what might be tracked
continuously.
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Trang 129-12
Trang 13Financial Reporting and XBRL
• XBRL stands for eXtensible Business
Reporting Language and is based on the
XML language, a standard for Internet
communication between businesses
various uses, including reporting on the
firm’s web site, filing to regulators (SEC,
IRS, etc.) and providing information to
other interested parties such as financial
analysts, loan officers and investors
access standard reports (i.e 10-K going to the SEC or the corporate tax return going
to the IRS) or specialized reports (i.e
accessing only specific data for a financial analyst, etc.)
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Trang 14Financial Reporting Using XBRL
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Trang 15XBRL Terminology
• The XBRL taxonomy defines and
describes each key data element (e.g.,
total assets, accounts, payable, net
income, etc.)
• XBRL instance documents contain the
actual dollar amounts or the details of
each of the elements within the firm’s
XBRL database
• XBRL style sheets take the instance
documents and add presentation
elements to make them readable by
humans
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Trang 16Should XBRL be audited?
What assurances do we need on
XBRL?
include the following assurances that:
taxonomy is used,
that is used in XBRL tagging is reliable,
and,
Trang 17XBRL GL
Ledger Taxonomy
anything that is found in a chart of
accounts, journal entries or historical
transactions, financial and non-financial
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Trang 18How XBRL Works
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Trang 19XBRL Summary
• XBRL serves as a means to electronically
communicate business information to
facilitate business reporting of financial
and nonfinancial data to users
• XBRL greatly enhances the speed and
accuracy of business reporting
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Trang 20information that is separate from the
operating databases of the firm to support decision making across a number of
functions in the firm
data warehouse to meet a specific need.
computer-based techniques to accumulate and
analyze data that might be helpful to the
firm’s strategic initiatives
performance in a way that is easily
accessible to executives
communicate business information and
facilitate business reporting of financial
and nonfinancial data to users
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