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 |
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, 2020 and 2019, 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, 2020 and 2019, 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
October 28, 2020
Years Ended June 30, 2020 and 2019
| June 30, 2020 | June 30, 2019 | |
|---|---|---|
| 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 | ||
| Total Current Liabilities | ||
| Net assets without donor restrictions | ||
| Total Liabilities and Net Assets |
Years Ended June 30, 2020 and 2019
| June 30, 2020 | June 30, 2019 | |
|---|---|---|
| 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 | ||
| Meals and entertainment | ||
| 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, 2020 and 2019
| June 30, 2020 | June 30, 2019 | |
|---|---|---|
| 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 | ( | |
| Certification royalty receivable | ||
| Prepaid expenses and other assets | ( | |
| Accounts payable | ( | ( |
| Unearned dues | ( | |
| 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 restrictions and may be expended for any purpose in performing the primary objectives of the organization. These net assets may be used at the discretion of the Organization's management and the board of directors.
Net assets with donor restrictions: 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 net assets with donor restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. When net assets with donor restrictions are received and the restriction expires in the same reporting period, these assets are classified as net assets without donor restrictions. There were no net assets with donor restrictions at June 30, 2020 and 2019.
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. The allowance for doubtful
accounts was
$
For further information see the item "Bad debt" in the Cash Flows.
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, 2020 and 2019.
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 years ended June 30, 2020 and 2019.
The costs of providing the Corporation's programs and supporting services have been summarized 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 services.
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 adopted the provisions of FASB Accounting Standard Update ("ASU") 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (Topic 958). This accounting standard is meant to help not-for-profit entities evaluate whether transactions should be accounted for as contributions or as exchange transactions and, if the transaction is identified as a contribution, whether it is conditional or unconditional. ASU 2018-08 clarifies how an organization determines whether a resource provider is receiving commensurate value in return for a grant. If the resource provider receives commensurate value from the grant recipient, the transaction is an exchange transaction and would follow the revenue recognition guidance. If no commensurate value is received by the grant maker, the transfer is a contribution. The value received by the general public as a result of the grant is not considered to be commensurate value received by the provider of the grant. There was no material impact to the financial statements as a result of adoption. Accordingly, no adjustment to opening net assets was recorded.
In preparing the financial statements, management has evaluated events and transactions for potential recognition or disclosure through October 28, 2020, 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 employee's 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, 2020 and 2019, the Corporation did not employ any individuals and did not make any contributions to the plan.
The Corporation's financial assets available for general expenditure within one year of the statement of financial position at June 30, 2020 are as follows:
| 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.
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 is recognized as grant revenue in the statement of activities.
A novel strain of coronavirus ("the virus") was deemed a global pandemic in early 2020. Business disruptions related to stopping the spread of the virus in the United States began in early 2020 and are expected to be temporary. As stated in Note 4, XBRL International, Inc. began addressing the impact of the pandemic in March 2020. However, there continues to be uncertainty regarding the duration of the disruptions in the U.S. and other countries. Economic uncertainties have arisen which may negatively impact support and revenue, including dues income.
The related financial impact to the Organization from these business disruptions cannot be estimated at this time.