Financial Statements
Independent Auditor's Report | 3 |
Statements of Financial Position | 4 |
Statements of Activities | 5 |
Statements of Cash Flows | 6 |
Notes to Financial Statements | 7 |
To the Board of Directors
XBRL International, lnc.
We have audited the accompanying financial statements of XBRL International, lnc. (a nonprofit corporation), which comprise the statements of financial position as of June 30, 2018 and 2017, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. ln making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
ln our opinion, the financial statements referred to above present fairly in all material respects the financial position of XBRL International, lnc. as of June 30, 2018, and 2017, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Red Bank, New Jersey
September 28, 2018
Years Ended June 30, 2018 and 2017
June 30, 2018 | June 30, 2017 | |
---|---|---|
Assets: | ||
Current assets: | ||
Cash and equivalents | ||
Dues receivable | ||
Certification royalty receivable | ||
Prepaid expenses and other assets | ||
Total Current Assets | ||
Liabilities and Net Assets: | ||
Current liabilities: | ||
Accounts payable and accrued expenses | ||
Unearned dues | ||
Deferred conference revenue | ||
Total Current Liabilities | ||
Net assets - unrestricted | ||
Total Liabilities and Net Assets |
Years Ended June 30, 2018 and 2017
June 30, 2018 | June 30, 2017 | |
---|---|---|
Support and Revenues | ||
Dues income | ||
Co-sponsorship conference fee, net | ||
Software certification | ||
Subject Matter Expert certification revenue | ||
lnterest income | ||
Consulting income | ||
Total Support and Revenues | ||
Expenses | ||
Program services | ||
Salaries, benefits, and contract staffing expense | ||
Meeting expense | ||
Web site maintenance | ||
Meals and entertainment | ||
Marketing and communications | ||
Subject Matter Expert royalty costs | ||
Supporting services | ||
Legal and accounting fees | ||
lnsurance expense | ||
Office, telephone, and sundry | ||
Bank charges | ||
Bad debt | ||
Currency exchanges loss (gain) | ( | |
Total Expenses | ||
Change in unrestricted net assets | ( | |
Unrestricted net assets, beginning of year | ||
Unrestricted net assets, end of year |
Years Ended June 30, 2018 and 2017
June 30, 2018 | June 30, 2017 | |
---|---|---|
Cash flows from operating activities | ||
Change in unrestricted net assets | ( | |
Adjustments to reconcile change in unrestricted net assets to net cash flows from operating activities: | ||
Bad debt | ||
Changes in operating assets and liabilities: | ||
Dues receivable | ||
Co-sponsorship conference fees receivable | ||
Certification royalty receivable | ( | |
Prepaid expenses and other assets | ( | |
Accounts payable | ( | ( |
Unearned dues | ( | |
Co-sponsorship conference fees payable | ( | |
Deferred conference revenue | ( | |
Net cash flows from operating activities | ||
Net change in cash and equivalents | ||
Cash and equivalents, beginning of year | ||
Cash and equivalents, end of year |
XBRL International, lnc. (the "Corporation") was incorporated in the state of Delaware in 2001. The Corporation is a global consortium of approximately 550 of the world's leading technology, accounting, financial services and regulatory organizations devoted to developing and promoting the adoption of the extensible Business Reporting Language ('XBRL') as a global standard. XBRL International lnc. has an explicitly public interest purpose, to improve the accountability and transparency of business performance globally, by proving the open data exchange standard for business reporting.
XBRL is a royalty-free, open specification for software that uses XML data tags to describe financial information for public and private companies and other organizations. lt is designed to benefit everyone involved in the preparation or collection of business information by utilizing a platform independent, standards-based method with which users can prepare, publish in a variety of formats, exchange and analyze business reports and the information they contain. It can be used to express a wide range of reports and disclosures for both internal and external reporting purposes. Business reporting includes, but is not limited to, financial statements, financial information, non-financial information, general ledger transactions and regulatory filings such as annual and quarterly accounting, tax and industry reports.
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Corporation and changes therein are classified and reported as follows:
Unrestricted Net Assets Net assets that are not subject to donor-imposed stipulations are classified as unrestricted net assets.
Temporarily Restricted Net Assets Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Corporation and/or the passage of time are classified as temporarily restricted net assets. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. When temporarily restricted net assets are received and the restriction expires in the same reporting period, these assets are classified as unrestricted. There were no temporarily restricted net assets at June 30, 2018 and 2017.
Permanently Restricted Net Assets Net assets subject to donor-imposed stipulations that they be maintained permanently by the Corporation are classified as permanently restricted net assets. Generally, the donors of these assets permit the Corporation to use all or part of the income earned on any related investments for general or specific purposes. There were no permanently restricted net assets at June 30, 2018 and 2017.
The Corporation considers money market funds and highly liquid investments with maturities of three months or less to be cash equivalents.
Dues income is recognized as support and revenue during the applicable membership period.
The Corporation uses the allowance method to determine uncollectible dues and co-sponsorship conference fees receivable ("receivables"). The Corporation periodically evaluates its receivables and establishes an allowance for doubtful accounts based on its prior years' experience and current credit considerations. Receivables are charged-off when management believes the uncollectibility of the dues or fees is confirmed.
Equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the assets, which is three years for computer and office equipment.
The Corporation closely monitors the extension of credit to the membership while maintaining allowances for potential credit losses. Membership is located in several countries throughout the world.
Financial instruments which potentially subject the Corporation to significant concentrations of credit risk consist principally of cash and equivalents with various financial institutions. These institutions are located throughout the United States, and the Corporation’s policy is to limit exposure to any one institution. At times, cash balances may exceed insured limits.
The Corporation co-sponsors conferences with international countries to achieve networking, educational and outreach goals. The Corporation shares revenue with the jurisdictional countries under various revenue splits.
The Organization recognizes revenue in the period in which the related activity is performed. Accordingly, dues and fees received in advance for the upcoming year are deferred until the activity commences or the applicable membership period takes place.
The Corporation is a qualified tax-exempt organization under Section 501(c)(6) of the Internal Revenue Code and is exempt from Federal and State income taxes.
The Corporation follows the accounting guidance for uncertain tax positions, which clarifies the accounting and recognition for tax positions taken or expected to be taken in its income tax returns. The Corporation recognizes the tax benefits from uncertain tax positions only if it is more likely than not that a tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
The Corporation has not incurred any interest or penalties related to income tax expense during the year ended June 30, 2018 and 2017.
The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
Foreign currency transactions entered into by the Organization included in the financial statements are translated into the functional currency, U.S. Dollars (USD), at the exchange rate prevailing at the transaction date. Monetary assets and liabilities are translated at the applicable exchange rate at each reporting date.
In preparing the financial statements, management has evaluated events and transactions for potential recognition or disclosure through September 28, 2018, the date the financial statements were available to be issued.
The Corporation provides a Safe Harbor 401(k) Profit Sharing Plan which covers all of the Corporation’s U.S. based employees. Employees become eligible after attaining the age of twenty-one and providing twelve months of service to the Corporation. Employees may contribute a portion of their compensation subject to Internal Revenue Code limits.
The Corporation matches 100% of the employees’ contribution up to 3% of compensation, plus 50% of the portion of the employee’s 401(k) contribution between 3% and 6% of compensation.
For the years ended June 30, 2018 and 2017, the Corporation made matching contributions to the plan in the amounts of $0 and $1,879, respectively.