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Subject: RE: [xbrl-public] Re: [ebxml-dev] ebXML with XBRL Payload

Couple of questions:
	1. Could the cost caused by Sarbanes-Oxley reporting requirements be
reduced by using a low cost universally available automated solution (i.e.,
SEC implements a ebXML registry, external counsel implements a ebXML
	2. Is XBRL the best xml vocabulary or are there other alternatives?
	3. Can this be implemented as a client side bolt on solution (i.e.,
solution driven by accountants worksheets and/or audit reports not by
business transactions)?


-----Original Message-----
From: ericecohen [mailto:eric.e.cohen@us.pwcglobal.com]
Sent: Tuesday, November 05, 2002 2:11 PM
To: xbrl-public@yahoogroups.com
Subject: [xbrl-public] Re: [ebxml-dev] ebXML with XBRL Payload


One of the challenges of doing that kind of automated mapping is that
the exact same exchange over-the-wire (as seen in the "partner to
partner", outside of the firewall, situation) may result in very
different GAAP classifications for the exact same transaction between
the exact same companies, rightly and appropriately.

An automobile manufacturer (Ford, GM, Chrysler) regularly buys spark
plugs (AC Delco, Autolite, NGK). They decide to get 10,000 plugs
delivered daily.

- Today's order goes into new cars.

- Yesterday's order went to dealers for repair parts.

- Tomorrow's order is going for warranty repairs at the factory.

- The next day's order is being used for destructive testing and R&D.

- The order after that - being sent to an outside shop to be turned
into attractive desktop paperweights for employee appreciation day.

- And the next order, to supply the sponsored NASCAR team.

Same order, very different accounting ramifications - increasing
inventory, expensed to R&D, marketing, etc. Just because I know WHAT
was exchanged between organizations does not mean I know the WHY, and
the consumption is as important as the procurement. There would be a
huge outcry if companies had to broadcast in advance and publicly
what they planned to do with what they were buying - if they even
know at the time.

Also - I pay $20, $20,000 or $200,000 for services - expense or
capitalize? You don't know from the transaction. Services are very
difficult to work with. Most examples of the mirror exchange show
clear cash/payment on account in exchange for goods with clear title.
How much creative accounting is based on this type of transaction?

<eccn />

--- In xbrl-public@y..., bhaugen <linkage@i...> wrote:

> A plus:  if all external transactions were
> defined by standard Economic Event Types,
> with standard mappings to GAAP classifications,
> it might reduce some of the creative accounting
> in the news...
> (Not that I expect that to happen anytime soon...)
> -Bob Haugen

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