Friday 24 January 2014

Fixing errors in XBRL Instance documents again

You can find a previous example in the post "Fixing errors in XBRL Instance documents" and an introduction to XBRL data errors here.

The next example is a little more subtle. Wrong but not immediately obvious, unless you are trying to model some business sectors, perhaps using our Sector3 product! - find loads more info on our award winning product here.

Boeing in their 2012 10-K slightly changed the tag for one of their top level business segments in one of the sections showing data for their businesses. It was referring to exactly the same segment (the label i.e. the description was the same) but the tag was different. A mistake - someone wasn't paying attention. In fact with reference to the previous example, they created an entirely bogus "context" for this identical segment.

So we got rid of it, replacing all connections to it with the correct context reference (shown below). In fact there was more than one wrong context so they all went the same way.

There was a little more work to do here than previously as a tag comes with a panoply of associated data - labels, definitions & the like, all of which we felt it was prudent to remove. Details were as ever recorded in the "xsd" file as shown below.

The consequence of this error was that data was missing for assets in Boeing's Defense, Space And Security business. Well it isn't anymore in Sector3.

Thursday 23 January 2014

Fixing errors in XBRL Instance documents

(Should be read in conjunction with the post – XBRL Data Errors)

In my last post, I talked about the different XBRL errors that you could possibly encounter. And we at Fundamental X are going to fix errors in the first two categrories (XBRL formatting errors & stupid mistakes) whenever we come across them.

This approach suits us as the data we currently output to Excel via XBRL to XL and Sector3 is generated on the fly from the original instance documents filed with the SEC. And we figure there are a lot of people out there who prefer to deal with the original documents rather than data that’s been mangled through a database.

XBRL formatting errors are rare. Stupid mistakes made in the creation of the XBRL filing are not (Invalid Axis Member Combination, one of the XBRL US classifications of this type of mistake, currently sits at the top of the error leader board) so I’m going to focus on these.

The following two examples should give you a flavour of the nature of these errors and how we will fix them.

Texas Capital Bancshares 2012 10-K

If you look at the Document and Entity Information in the interactive data on the SEC site, you immediately see the problem:

The "Document Period End Date" and the axis date don't match. That's because the date for this filing hasn't been updated in the XBRL from what is more than likely a previous XBRL filing (you can double check that the date is indeed incorrect by referencing the html 10-K), Therefore the dates for the most important contexts in the entire filing are wrong. At this point our processing software throws a wobbly and we fix the error in the instance document. Seeing it is an elementary error in the XBRL, it seems judicious to fix it in the source rather than further down the processing and storage road.

Of course this kind of error should be bought to the attention of the SEC and the company concerned. The filing will not be corrected but I think an additional amended 10-K/A would be filed instead. But markets wait for no man.......

So what do we do? Well here is what the error looked like in the XBRL:

So we changed the date in the context (and all other relevant contexts) and corrected the context name to reflect the change. At this point all references to this context also needed to be changed. It's important to note that we didn't re-create the XBRL filing as we want to retain the integrity of the existing filing, so we merely amended it. All changes are noted at the top of the file involved and all file changes are summarised in the xsd file as shown below:

The amended files are then used in preference to those on the SEC site when generating XBRL to XL products.

I feel this post is getting a little tedious so the second example will have to wait till the next post. You can download the amended XBRL instance document for Texas Capital Bancshares in it's entirety from here.

XBRL data errors

I’m going to talk here about actual errors rather than data issues (a whole different topic worthy of a ream of posts by itself). So we are talking here about stuff that is just plain wrong (rather than data that just might need some proper treatment).

XBRL US, to their credit, monitor this all very carefully and clinically. They have divided errors up into 32 types (If we've got a 16,000 plus data set, better make sure we have a similarly impressive number of error types to go with it!).

I guess though I would classify all these errors into four categories:

Errors in the XBRL formatting – you should never see these as the filing would fail the compliance tests on submission although according to the XBRL US stats they do exist - "Filing is Invalid XBRL" in the link above.

Stupid mistakes – often made because the filer quite understandably uses the last filing as a template e.g. period date is wrong.

Erroneous values – seeing the figures are more often than not pasted or automatically transposed from the html filing (this believe it or not is how most XBRL filings are created!!), the absolute values shouldn’t be wrong but the sign or scaling factor could be.

Incorrect or questionable tagging – could either be down to the wrong US GAAP tag being used or the inappropriate use of an extension.

There are various financial data providers out there who can and will fix this type of error in their databases but if like me you prefer to deal with the original documents then what to do?

Well we’ve decided to fix some of these errors in the instance documents themselves. The next post will explain exactly what we are talking about here, by way of a couple of examples.