Using the US-GAAP Taxonomy from a Financial Reporting Perspective

1. Using the US-GAAP Taxonomy froma Financial Reporting Perspective 14th International XBRL Conference Philadelphia December 4–6, 2006

2. Introductions • David Prather—Accounting Objects • Campbell Pryde—Morgan Stanley • Rob Blake—Rivet Software

3. Session overview • XBRL in general • Navigating the US GAAP taxonomy • Extending a taxonomy • Creating an instance document • Current projects and Q&A

4. The XBRL metaphor slide • Specification = grammar • Taxonomy = dictionary • Instance = document • Elements + attributes = sentence

5. Accounting vs programming • XBRL is a programming language for the accounting and financial reporting communities • Reading vs Parsing • People read then derive,infer, deduce, contextualize • Computers…compute • Accountants have it easy,programmers have it hard!

6. Complementary or supplementary? • Much accounting information is already stored in tables in accounting and ERP applications! • Have to break (cut ‘n paste) thereporting supply chain to createfinancial statements • XBRL keeps businessinformation digital

7. Complimentary • Accounting has text, numbers and ratios • XBRL has these • Many disclosures are table-based (rows and columns) • XBRL uses tuples to represent columns and rows • Disclosures are multi-dimensional—i.e.,thing + value + time = disclosure • net income + $500m + Dec 6, 2006 = disclosure • XML is two-dimensional ☹ • XBRL (XML + XLink = XBRL) is multi-dimensional ☺

8. Is XBRL like a form—e.g.,10K, 10Q? • An XBRL taxonomy can be created to behave like a form (10K or 10Q); but a form it is not • XBRL is more eXtensiblethan a form • A form that can validateits contents (FDIC)

9. What is the US GAAP taxonomy? • Rules • FASB, • SEC • Common practice • Disclosures • Industry practice

10. US GAAP Taxonomy Framework Global Common Document(int-gcd) Primary Terms(usfr-pte) Financial Services Terms(usfr-fste) AccountantsReport(int-ar) Primary Relationships(usfr-ptr) Financial Services Relationships(usfr-fstr) ManagementDiscussion and Analysis (usfr-namda) Management Report(usfr-mr) Bank & Savings Institutions(us-gaap-basi) Insurance GAAP(us-gaap-ins) US GAAP C&I Industry Terms(us-gaap-ci) SEC Certification(usfr-sec-cert) Broker Dealers(us-gaap-bd) BETA InvestmentManagement(us-gaap-im) Company Extension Instance Document

11. Taxonomy’s relationship to GAAP • Links to references • Organized in a hierarchical tree (like in Windows) • But can be presented in manydifferent ways (many trees) • Not an “importance” hierarchy • Rather an “easy to find” hierarchy • Let’s take a look…

12. Today’s tutorials • Taxonomy extension—your company’s reporting requirements • Instance creation—making a statement! • I heard XBRL US was working on a new taxonomy… • Balance Sheet and Income Statementwill not change significantly • Take it away Campbell

13. XBRL Instance Documents Essential Terms Instance The basic XBRL-tagged financial statement Taxonomy A “dictionary” of approved, standardized tags Being created by industry grouping Available now: Commercial & Industrial (C&I) Banking & Savings Investment Management Insurance

14. In General Terms THIS becomes THIS

15. In Action Balance Sheet (excerpt): Scenario: Unaudited Precision: Millions Scale: Millions Element: Cash & Cash Equivalents Numeric Unit: $ - US Dollars Date: As of 9/30/06 <usfr-pte:CashCashEquivalents contextRef="BalanceAsOf_30Sep2006_Unaudited" unitRef="USD" decimals="INF">2774000000</usfr-pte:CashCashEquivalents> 15

16. What’s An XBRL Instance Document? • An XML file • Matches report data against elements from one or more taxonomies and includes reporting concepts such as time period, currency and precision (the last two for numeric data only) • May represent a complete one or more financial statements, a subset of a financial statement, or a superset of data from multiple reports • A SET OF FACTS understandable across different technology platforms and computers

17. Made up of one or more ITEMS XBRL element + data (+ pointer to context) Contexts and unitRef’s Combinations of Date (as of, for the period x to y) Entity and reporting units Scenario (actual, budget, forecast) Unit of measure (US$, square feet, each) Precision What’s An XBRL Document

18. Financial Report

19. XBRL Instance Document

20. Instance Document Breakdown • Taxonomy Information (schemaRef and namespace prefix) • Time Periods (Context)

21. Instance Document Breakdown • Units • Reporting Concepts

22. Instance Document Breakdown • Footnotes

23. Non-financial Data RealNetworks litigation. On December 18, 2003, RealNetworks, Inc. filed suit against us alleging violations of federal and state antitrust and unfair competition laws, related to streaming media features of Windows and related technologies. RealNetworks seeks damages and injunctive relief, including a permanent injunction requiring us to offer a version of Windows products with no streaming media features. We deny the allegations and will vigorously defend the action. RealNetworks filed the case in federal court in San Jose, California. It has been consolidated for pretrial purposes with other cases pending in the U.S. District Court in Baltimore. Sun Microsystems agreements.On April 1, 2004, we entered into a series of agreements with Sun Microsystems, Inc. to resolve all pending litigation between the parties, attempt to avoid future disputes, and create an environment conducive to future cooperation. These agreements included a Settlement Agreement, a Patent Covenant and Standstill Agreement, and a Technology Collaboration Agreement. Pursuant to the agreements, we made payments totaling $1.95 billion to Sun. In the Settlement Agreement, Sun agreed to discontinue its participation in proceedings pending against Microsoft instituted by the Commission of the European Communities and agreed to dismiss with prejudice the action it filed in the Northern District of California, Sun Microsystems, Inc. v. Microsoft Corp., Civil Action No. C-02-01150 RMW (PVT) (N.D. Cal.), and later transferred to the United States District Court for the District of Maryland under MDL Docket No. 1332. Sun released Microsoft from any claims that were or could have been asserted in the proceedings pending before the European Communities, its action pending in the U.S., and any claims based on any actions or events discussed in the Findings of Fact in United States v. Microsoft Corp. and New York, et al. v Microsoft Corp., 84 F. Supp. 2d 9 (D.D.C. 2002). Pursuant to the terms of the Settlement Agreement, Microsoft paid Sun $700 million, which was recorded as litigation related expense.

24. Current Projects • SEC and EDGAR • XBRL taxonomy completion • Codification – topic-based authoritative GAAP (includes SEC) • Timelines

25. Questions • David Prather—Accounting Objects • Project Manager, FASB (US GAAP Codification)dprather@accountingObjects.com • Campbell Pryde—Morgan Stanley • Executive Director, Institutional Securities GroupCampbell.Pryde@morganstanley.com • Rob Blake—Rivet Software • Vice President of Product Marketingrob.blake@rivetsoftware.com