HELP YOUR CLIENTS COMPETE BETTER
IN THE CAPITAL MARKET

Help clients compete in capital market. Evangelize XBRL

Your clients have competitive advantage in their market place. That is what made them public enterprises with access to capital market to raise big ticket funding.

You can help them acquire competitive advantage in the capital market as well.

• Access data quickly
• Incorporate data quickly into “financial analysis” models
• Compare data of competing entities quickly.

SEC permits filing entities to “furnish” financial data in XBRL format into IDEA (Interactive Data Electronic Applications), the new platform slated to replace EDGAR.

• XBRL (short for Extensible Business Reporting Language) attaches “invisible tags” to every entry in the financial statement.


• The tags are chosen from a taxonomy (or a universally accepted list of standardized financial terms) based on US GAAP.


• The tags make the financial statements easily read and understood by computers. Extraction of tagged information from one entity or multiple entities into an analytical model is easy.


• Since all line items are associated with standardized terms in the taxonomy, analysts and investors do not need to “interpret” each line item before using information provided.


• Querying tools are available that can rapidly extract information from one or more entities and compare them without building complex models.


• If the peculiar circumstances of a corporation warrant it, we can extend the taxonomy to include special items for a corporation. Analysts discourage this to ensure comparability.

XBRL filing is not at present mandatory. Corporations can furnish XBRL data if they want to. SEC has an agenda to make XBRL filing mandatory in future.

The information “furnished” in XBRL format does not have the status of a “filing”. Investors can rely on “filed” data and have remedies if the “filed” data is incorrect or misleading. Investors ought to be diligent in using “furnished” information but do have remedies if the information furnished is intentionally incorrect.

A corporation providing “interactive data” in XBRL format to analysts and investors, even voluntarily, would have several advantages:

• Institutional analysts and independent analysts would find it less expensive to “cover” the stock and therefore be willing to issue “analysis” to their clients and the public. Midsize enterprises who are not covered by analysts could look to increase coverage by making it easier to cover their stock.


• The elapse time between “dissemination” and “analysis” is very low. This prevents delay and more importantly noise factors introducing bias before analysis. One reason why several big ticket enterprises provide financial statements in XBRL format voluntarily.


• Retail investors, using technology available at home, would be able to build their own analysis with ease. (In 1975, 5 billion shares were traded in NYSE. In 2003, this increased to 350 billion. The increase is mostly attributable to retail investors taking to investing in stocks in the last 25 years. Corporations need to be able to reach and appeal to retail investors to compete in the capital market).

Midsize corporations can acquire competitive advantage in the capital market by garnering mindshare by providing their financial statements in XBRL format.

We have expertise in providing XBRL services. We are providing XBRL services to several lawyers, filing agencies and financial press in the United States.

We convert your client’s financial statements and footnotes into XBRL documents.

Financial statements are tagged to the most granular line item level. Footnotes are lightly tagged as text blocks as is currently required by SEC.

Our XBRL tagging, validation and rendering services include:

• Marking up financial statements and footnotes with XBRL tags


• Validation for mark-ups and calculations


• Creation of XBRL instance document in XML format for filing with SEC


• Creation of extended taxonomy as necessary


• Provision of a “highlight” report to facilitate review and provide concurrence on:
• Tagging decisions that require concurrence
• Labels added that require concurrence
• Liaison with your clients, if you require, through web, chat or phone for accounting related issues, and


• Rendering of XBRL instance document in human viewable format.

Our accounting professionals have expertise in US GAAP and are fully familiar with US GAAP taxonomy.

We try to avoid extension of taxonomy for entity’s special features as much as possible to ensure a high level of comparability.

We can work with any standard XBRL software including popular software such as Rivet’s DragonTag.

Reduce cost and time for HTML Documents for EDGAR

The interactive XBRL data is at present confined to financial statements (and in a light way to) footnotes.  These are a very small (though most used) part of any periodic filing with regulators.

A substantial part of the filing is textual, and plays a strong role in influencing the mind of an investor or analyst.

Providing this in a visually elegant “human readable” format through the web is important.

We specialize in preparing all regulatory filings (F1, S1, 10K, 10Q, 6K, 20F etc) as HTML documents conforming to your client’s style or your house style with special emphasis on:

• Visual elegance that attracts and retains attention
• Structured layout that familiarizes users with the document rendering navigation easy and pleasant
• Accuracy, given the need to achieve zero error all the time

Can preparation of HTML or XBRL documents be outsourced?

We have been doing this for some time now.

Our clients include several law firms, filing agencies and financial press; some are world leaders in this space.

Services Offered

1  XBRL Services

We convert your client’s financial statements and footnotes into XBRL documents. 

Financial statements are tagged to the most granular line item level.  Footnotes are lightly tagged as text blocks as is currently required by SEC.

Our XBRL tagging, validation and rendering services include:

• Marking up financial statements and footnotes with XBRL tags


• Validation for mark-ups and calculations


• Creation of XBRL instance document in XML format for filing with SEC


• Creation of Company extended taxonomy as necessary


• Provision of a “highlight” report to facilitate review and provide concurrence on:
• Tagging decisions that require concurrence
• Labels added that require concurrence
• Liaison with your clients, if you require, through web, chat or phone for accounting related issues, and


• Rendering of XBRL instance document in human viewable format.

Our accounting professionals have expertise in US GAAP and are fully familiar with US GAAP taxonomy. 

We try to avoid extension of taxonomy for entity’s special features as much as possible to ensure a high level of comparability.

We can work with any standard XBRL software including popular software such as Rivet’s DragonTag.

How does this work?

We need to establish a safe/secure VPN connection between our networks. Our network is ready for this. Our network is ring fenced by a hardware firewall and anti-intrusion defense. All you need to do is to protect your network with a firewall defense. We can help you here.

We can access your system, with your permission, remotely and:

• Process your documents in your XBRL software and leave the output in your system; or
• Process your documents in our XBRL software and leave the output in your system.

2  HTML Services

We convert any document meant for filing (including registration statements, updates, quarterly financial statements, notices of special events etc) into HTML documents for filing with SEC’s EDGAR system.

We would be happy to receive inputs in the form of word processor output, spreadsheet output, power point output or just plain text.

We would conform to your house style or your client’s house style in presentation of output.

We would ensure final output is elegant, consistent in structure, easily navigable and consistent with inputs received.

Our publishing executives are experts in creating high quality HTML documents for human reading through the web.
Our turnaround times are quick. 

You have the additional advantage of our working during your night time (in India) and turning around your late evening documents before you arrive in the morning.  We can work to your daytime as well.

We have acquired a reputation for accuracy in the last four years.
 

How much would it cost?

Upfront investment is minimal to secure your network. You need to provide us access to your system. We would take care of the rest.

Recurring costs are confined to our invoices for services. These can be in any format:
(a)   $ per document
(b)   $/hour of process executive time
(c)   $/month per process executive dedicated

Our customers tend to save at least 50% of the total cost (salaries, benefits, facility costs etc) on outsourcing processes to us.  We collect a refundable deposit equivalent to one month’s anticipated billing to cover training costs.