XBRL International, Inc
Financial Statements
Financial Statements
| INDEPENDENT AUDITOR'S REPORT | 3 |
| FINANCIAL STATEMENTS: | |
| Statements of Financial Position | 4 |
| Statements of Activities | 5 |
| Statements of Cash Flows | 6 |
| Notes to Financial Statements | 7-11 |
To the Board of Directors
XBRL International, lnc.
We have audited the accompanying financial statements of XBRL International, Inc. (a nonprofit corporation),which comprise the statements of financial position as of June 30, 2021 and 2020, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.
Management's Responsibility for 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.
Auditor's Responsibility
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. In 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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of XBRL International, Inc. as of June 30, 2021 and 2020, 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
November 02, 2021
Years Ended June 30, 2021 and 2020
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Assets: | ||
| Current assets: | ||
| Cash and cash equivalents | ||
| Dues receivable, net | ||
| Conference fees 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 without donor restrictions | ||
| Total Liabilities and Net Assets |
Years Ended June 30, 2021 and 2020
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Support and Revenues: | ||
| Dues income | ||
| Co-sponsorship conference fee, net | ( | |
| Software certification | ||
| Subject Matter Expert certification revenue | ||
| lnterest income | ||
| Grant revenue | ||
| Consulting income | ||
| Total Support and Revenues Without Donor Restrictions | ||
| Expenses: | ||
| Program services: | ||
| Contract staffing expense | ||
| Meeting expense | ||
| Web site maintenance | ||
| Marketing and communications | ||
| Licensing fees | ||
| Subject matter expert royalty costs | ||
| Legal and accounting fees | ||
| lnsurance expense | ||
| Office, telephone, and sundry | ||
| Bank charges | ||
| Bad debt | ||
| Currency exchanges loss | ||
| Supporting services: | ||
| Contract staffing expense | ||
| Meeting expense | ||
| Web site maintenance | ||
| Meals and entertainment | ||
| Marketing and communications | ||
| Licensing fees | ||
| Legal and accounting fees | ||
| lnsurance expense | ||
| Office, telephone, and sundry | ||
| Bank charges | ||
| Currency exchanges loss (gain) | ( | |
| Total Expenses | ||
| CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS | ( | |
| NET ASSETS WITHOUT DONOR RESTRICTIONS, BEGINNING OF YEAR | ||
| NET ASSETS WITHOUT DONOR RESTRICTIONS, END OF YEAR |
Years Ended June 30, 2021 and 2020
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Change in net assets without donor restrictions | ( | |
| Adjustments to reconcile change in net assets without donor restrictions 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 | ||
| 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, Inc. (the "Corporation") was incorporated in the state of Delaware in 2001. The Corporation is a global consortium of approximately 600 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, Inc. has an explicitly public interest purpose, to improve the accountability and transparency of business performance globally, by providing the open data exchange standard for business reporting.
XBRL is a royalty-free, open specification for software that uses digital data tags to describe financial information for public and private companies and other organizations. It 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:
Net assets without donor restrictions: Net assets that are not subject to donor-imposed stipulations.
Net assets with donor restrictions: Net assets whose use is limited by donor-imposed time and/or purpose restrictions.
Revenues are reported as increases in net assets without donor restriction unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restriction. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulation or by law. Expirations of donor restrictions on the net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as reclassifications between the applicable classes of net assets. The Corporation has adopted a policy to classify donor restricted contributions as without donor restrictions to the extent that donor restrictions were met in the year the contribution was received.
The costs of the Corporation's programs and supporting services have been reported on a functional basis in the Statement of Activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited based upon the proportion of time spent providing those programs and services.
In preparing the financial statements, management has evaluated events and transactions for potential recognition or disclosure through November 02, 2021, the date the financial statements were available to be issued.
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 Corporation 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.
The Corporation considers money market funds and highly liquid investments with maturities of three months or less to be cash equivalents.
Dues income and conference fees are recognized as support and revenue during the applicable membership or event period.
The Corporation uses the allowance method to determine uncollectible dues and conference fees receivable ("receivables"). The Corporation periodically evaluates its receivables and establishes an allowance for doubtful accounts based on its prior experience and current credit considerations. Receivables are charged-off when management believes the uncollectibility of the dues or fees is confirmed. The allowance for doubtful accounts was $
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. All equipment is fully depreciated as of June 30, 2021 and 2020.
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 cash 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 recognizes revenue from membership dues over the membership period, which is generally one year. The performance obligation consists of providing members access to multiple levels of member benefits, and is recognized ratably as access is simultaneously available and used by the members. The dues are used to cover the costs of operating the organization and provide access to networking and collaboration in the promotion of the XBRL specification. Dues are determined based upon the type of membership selected and the type of organization obtaining membership.
Conference fee income includes individual attendance and sponsorship fees. At times, the Corporation co-sponsors conferences with international countries to achieve networking, educational and outreach goals. In those instances, the Corporation shares revenue with the jurisdictional countries under various revenue splits. Conference fee revenue is recognized at the completion of the conference, at a point intime.
Software certification revenues are recognized upon completion of the certification review, at a point-in-time.
Membership dues paid in advance are deferred to the membership period to which they relate. All other amounts paid in advance are deferred to the period in which the underlying sale or event takes place. Due to the nature and timing of the performance and/or transfer of services and products, substantially all contract liabilities at June 30 of each year are recognized in the following year.
The timing of revenue recognition, billings and cash collections results in contract assets, receivables and contract liabilities. Contract assets would exist when the Corporation has a contract with a customer for which revenues have been recognized but customer payment is contingent on a future event. The Corporation's revenues are generally limited to amounts that are not contingent on future events, therefore, no contract assets have been recorded. The Corporation records receivables when the right to consideration becomes unconditional. Unearned dues, including dues received in advance, are contract balances and advanced payments the Corporation received from customers before revenue is recognized.
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 years ended June 30, 2021 and 2020.
The Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 Revenue from Contracts with Customers (Topic 606) and related subsequent updates which modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, and requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. In June 2020, FASB issued ASU 2020-05 Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities which extended the effective date of adoption for entities that had not yet adopted ASU 2014-09 to annual reporting periods beginning after December 15, 2019. The Corporation adopted ASU 2014-09 and related updates effective July 1, 2020, as management believes the standard improves the usefulness and understandability of the Corporation's financial reporting. Analysis of various provisions of this standard resulted in no significant changes in the way the Corporation recognizes revenue, and therefore no changes tot eh previously issued audited financial statements were required on a retrospective basis. The presentation and disclosures of revenue have been enhanced in accordance with the standard.
The Corporation's financial assets available for general expenditure within one year of the statement of financial position are as follows at June 30,:
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Cash and equivalents | ||
| Dues and other receivables | ||
| Financial assets available to meet general expenditures in the next twelve months |
The Corporation had no amounts unavailable for general expenditures due within the next twelve months. The Corporation's goal is to maintain financial assets to meet 180 days of operating expenditures.
The Corporation disaggregates revenue from contracts with customers based on revenue category and the timing of recognizing revenue. The revenue disaggregated by the timing of recognition and category are as follows for the years ended June 30,:
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Point-in-time | ||
| Conference fees and sponsorships | ||
| Software certifications | ||
| Total point-in-time | ||
| Over time | ||
| Jurisdictional dues | ||
| Direct participant dues | ||
| Sustaining partnership dues | ||
| Total over time |
Conference fees are presented net of conference related expenses of $
The following table provides information about significant changes in the contract liabilities for the years ended June 30,:
| June 30, 2021 | June 30, 2020 | |
|---|---|---|
| Deferred membership dues, beginning of year | ||
| Revenue recognized that was included in deferred membership dues at the beginning of year | ( | ( |
| Increase in deferred revenue due to cash received during the period | ||
| Deferred membership dues, end of year |
XBRL International, Inc. began addressing the impact of the global spread of the Coronavirus pandemic on its operations in March 2020. The Organization received a $4,000 Economic Injury Disaster Loan ("EIDL") advance from the U.S. Small Business Administration in April 2020, to be used for working capital and normal operating expenses as defined in the Coronavirus Aid, Relief and Economic Security (CARES) Act. Under the terms of the CARES Act, advances provided under Section 1110, Emergency EIDL Grants, do not require repayment. Accordingly, the advance was recognized as grant revenue in the statement of activities for the year ended June 30, 2020.
A novel strain of coronavirus ("the virus") arose and was deemed a global pandemic in early 2020. Business disruptions related to stopping the spread of the virus began in the U.S. and other countries in early 2020. As of June 30, 2021, the virus represents an uncertainty which may negatively impact future support and revenue, including dues income. As disclosed in Note 3, as needs arise that are not funded by current operations, the Organization has $
The Corporation assessed certain accounting matters in context with the information reasonably available including the potential effect of these factors on the Corporation's allowance for doubtful accounts and fee income. It is reasonably possible that a change in estimates may occur in the near term as a result of the virus. As of the date the financial statements were available to be issued, the related financial impact to the Corporation from these business disruptions cannot be estimated.