XBRL: Implementing XBRL in the internationalenvironment

Daniel RobertsNational Director of Assurance InnovationChair, XBRL-US Steering Committee

May 9, 2006

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Agenda

• What is XBRL, and Why does XBRL matter

• What is happening Internationally?– Investment markets– Governmental activity

• Fundamentals for identifying an XBRL project

• Implementing an XBRL project/environment– Regulator– Internal reporting– NGO / Funding Agency

3

What is XBRL

XBRL is to the printed annual report, what the internet is to the printed

Yellow PagesYellow Pages.

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What is XBRL?

• An industry standard for the publishing, exchange and analysis of financial reports and data.– Information is entered only once using an Internet-based

tool for preparing and publishing all financial documents with automatic conversion to various formats

– Information may be reliably extracted and analyzed across companies with no manual intervention

– Supports current accounting standards

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What is XBRL?

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investmentand Lending

AnalysisProcessesProcesses

ParticipantsParticipants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

Academics

XBRLLedger

XBRLExternal Reporting

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What is XBRL?

XBRL adds to XML: Multi dimensional financial

data representations

Financial reporting vocabularies (taxonomies)

Aliases and other definition relationships

Mathematical relationships between concepts

Flexibility about how to present items to users

Structure for authoritative policies and guidance

Reporting apps need these even when using XML

CalculationsCash = Currency + Deposits

CalculationsCash = Currency + Deposits

PresentationReceivables / Les

créances/…

PresentationReceivables / Les

créances/…

FormulasCash ≥ 0

FormulasCash ≥ 0

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

DefinitionscashCashEquivalentsAndShortTermInvestments

DefinitionscashCashEquivalentsAndShortTermInvestments

LabelUS $

FY2004Budgeted

LabelUS $

FY2004Budgeted

XBRLItem

“200”

XBRLItem

“200”

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The Gartner Hype Cycle: 2004

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The Gartner Hype Cycle: 2005

9

XBRL Taxonomy Growth

2000 2001

2002 2003 2004 2005 2006Time

Public Taxonomies

June, 2001General Ledger

January, 2004UK GAAP 2.0Canada GAAP

June, 2004IFRS GAAPNZ GAAPUK GAAP

February, 2005US GAAP C&IUS GAAP BankUS GAAP InsSEC CertificationMgmt ReportAccountants ReportMD&A

July, 2005China FrameworkIFRS GAAP US GAAP Invest Mgt

Nov, 2005General Ledger

This does not include any private taxonomies such asthose prepared for statutorypurposes.

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XBRL Tools Growth(Representative Listing)

2000 2001

2002 2003 2004 2005 2006Time

Tools

Caseware

Creative Solutions

DynAccSys Xabra

Fujitsu XWand

J2R Batavia Data Driver

Hitachi CBRP

Metapraxis

Microsoft Business Solutions

Rivet Software

UBMatrix Automator ProDecisionSoft True North

Allocation SolutionsEdgar-Online IMetrix

Hitachi XimbaHitachi XiRute

IBS Open Digital ReportingIpedo EII

Oracle XBI Software

UBMatrix Tool KitUBMatrix Converter

Software AG Hyperion

Navision

XBRL SolutionsIBMatrix

FujitsuSAP

Snappy Reports

High Ridge Technologies

FR Solutions

Covarity

SavaNet

FDIC VendorsDBI Financial Systems, Inc.FinArchFRS Global Financial Reporting & AnalyticsIDOM, Inc.Information Technology, Inc.Fidelity Regulatory SolutionsJack Henry & Associates Inc.

Adobe

Core FilingsSemansys IntegratorSemansys Analyzer

Semansys Deployment Manager

Semansys Composer

Carthesis

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Agenda

• What is XBRL, and Why does XBRL matter

• What is happening Internationally?– Investment markets– Governmental activity

• Fundamentals for identifying an XBRL project

• Implementing an XBRL project/environment– Regulator– Internal reporting– NGO / Funding Agency

US

CA

SP

IEUK

SE

DK

FI

JP

NZ

KR

SA

NL

IASB

BR

CO

AR

DE

CH

CN

RU

PT

IT

NO

SG

BE

FR

AU

IN

XBRL Jurisdictions

HK

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after term expires

International Steering Committee

Chair: Kurt Ramin

International Steering Committee

Chair: Kurt Ramin

Board of Advisors Thomas Krantz(5 to 19 members)Being Established

Board of Advisors Thomas Krantz(5 to 19 members)Being Established

2nd Vice ChairWalter Hamscher

2nd Vice ChairWalter Hamscher

Executive Committee*(7 members)

Executive Committee*(7 members)

appoints

Immediate Past ISC ChairVacant

Immediate Past ISC ChairVacant

member of

ISC chairelects

ISC SeatISC Seat

Key

No Seat on ISCNo Seat on ISC

XBRL International Governance

Provisional Jurisdictions

UAEUAE BelgiumBelgium DenmarkDenmark SwedenSweden

ISC

Rep

resen

tativ

es

At Large Representatives

Michael

Ohata

Michael

Ohata

Vincent Bert Vincent Bert

CurrentlyVacant

CurrentlyVacant

Walter

Hamscher

Walter

Hamscher John Turner John Turner

Makoto Koizumi

Makoto Koizumi

MikeWillis

MikeWillis

Executive DirectorCurrentlyVacant

Executive DirectorCurrentlyVacant

Olivier Servais

Olivier Servais

At Large EC Representation from ISC

At Large EC Representation from ISC

FranceFrance

Established Jurisdiction Representatives

CABill

Swirsky

CABill

Swirsky

AUPaul Phenix

AUPaul Phenix

IASBKurt Ramin

IASBKurt Ramin

NZMark

Hucklesby

NZMark

Hucklesby

UKChris Rodgers

UKChris Rodgers

DENorbert

Flickinger

DENorbert

Flickinger

USDaniel Roberts

USDaniel Roberts

JPEiichi

Watanabe

JPEiichi

Watanabe

NLJan Pasmooij

NLJan Pasmooij

IRConor O’Kelly

IRConor O’Kelly

SPFederico Florez

SPFederico Florez

KoreaKorea

EstablishedEstablished

IrelandIreland

GermanyGermany

SpainSpain

The NetherlandsThe Netherlands

United KingdomUnited Kingdom

ProvisionalProvisional

SwedenSweden

BelgiumBelgium

DenmarkDenmark

FranceFrance

In constructionIn construction

Czech RepublicCzech Republic

Finland Finland

HungaryHungary

Poland Poland

PortugalPortugal

In projectIn project

Slovenia, Austria, Slovenia, Austria,

Italy, Greece, Italy, Greece,

Estonia, Switzerland, Estonia, Switzerland,

Norway, Malta + Norway, Malta +

TurkeyTurkey

XBRL in EuropeXBRL in EuropeJurisdictionsJurisdictions

LuxembourgLuxembourg

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CACA UKUK

IEIE

AUAU

NONO

JPJP

NZNZ

NLNL DEDE

CNCN

Tax Authorities

PilotPilot Committed

Committed

Tax XML Technical Committee recommends use of XBRL (Oasis-OECD)29 Tax authorities

IRSIRS

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USUS

UKUK

JPJPESES

SESE

CNCN

ZAZA

AUAU

DEDEDKDK

Financial Banking Regulators

PilotPilot Committed

Committed

KRKR

SGSG

FRFR

NZNZ

NLNL

LuXLuXPortug

al

Portugal

BEBEEU CEBSEU CEBS

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Exchanges & Equity Regulators

Sao PauloSao Paulo

NZSENZSEASXASXJohannesburgJohannesburg

ShenzenShenzen

EuroNextEuroNextKOSDAQKOSDAQ

TokyoTokyo

SingaporeSingapore

SWXSWXLuxLux

Pilot LiveEval

TSXTSX

OBXOBX

LSELSECSECSE

DeutscheBörse

DeutscheBörse

Taipei

SECSEC

Korea

Korea

ShanghaiShanghai

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Agenda

• What is XBRL, and Why does XBRL matter

• What is happening Internationally?– Investment markets– Governmental activity

• Fundamentals for identifying an XBRL project

• Implementing an XBRL project/environment– Regulator– Internal reporting– NGO / Funding Agency

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Project Disciplines

Project disciplines:

– What do you want to accomplish

– Who are the major stakeholders

– Who is / are the champions at very senior levels

– Professional disciplined project management is critical

– XBRL is not a quick / easy fix

Start with a couple of data streams – reports that are provided or required.

Look for common information that is used or provided to multiple users.

Look at processes that repeated.

21

Agenda

• What is XBRL, and Why does XBRL matter

• What is happening Internationally?– Investment markets– Governmental activity

• Fundamentals for identifying an XBRL project

• Implementing an XBRL project/environment– Regulator– Internal reporting– NGO / Funding Agency

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Project Disciplines

What do you want to accomplish

• Stop duplication of reporting (Look for common information that is used or provided to multiple users)

• Received data sooner• Publish data earlier• Improved data quality• All validity edits are met• Staff work per bank decreased• Financial Analysts finish assignments faster

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Project Disciplines

Who are the major stakeholders

– FDIC/FFIEC/OCC

– CEBS (COREP)

Who is / are the champions at very senior levels

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Project Disciplines

Professional disciplined project management is critical

XBRL is not a quick / easy fix

– FDIC took 3+ years

– COREP underway for 2 years

– SEC expressed interest in September 2004

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Agenda

• What is XBRL, and Why does XBRL matter

• What is happening Internationally?– Investment markets– Governmental activity

• Fundamentals for identifying an XBRL project

• Implementing an XBRL project/environment– Regulator– Internal reporting– NGO / Funding Agency

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The world is getting smaller

92 countries have approved IFRS Russia, Australia, EU are in Coming soon

- Canada, Chile, China, …

- India, Latin America, … Converging with USA and Japan

IFRSs Around the World

RED = IFRS Approved

ORANGE = Stated move to adoption

YELLOW = Adapting to IFRSs

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FDIC / FFIEC / OCC

• Three banking agencies developed the Central Data Repository (CDR)– Using XBRL to define and transport data – Receives, validates, stores– Distributes financial information

• CDR launched on October 1, 2005– Receive data sooner– Publish data one day after receipt– Improved data quality– Improved data validity– Staff work per bank decreased

The CDR (Central Data Repository)

Project

XBRL at FDIC

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FDIC / FFIEC / OCC

• Three banking agencies developed the Central Data Repository (CDR)– Using XBRL to define and transport data – Receives, validates, stores– Distributes financial information

• CDR launched on October 1, 2005– Receive data sooner– Publish data one day after receipt– Improved data quality– Improved data validity– Staff work per bank decreased

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FDIC / FFIEC / OCC

How Does FDIC Measure Success?

• Improved data quality– Legacy: 66% clean coming in– CDR: 95% of data ‘clean’, some accepted with explanations - banks

include written explanations with submitted to explain data nuances– Result: Expectations of data are documented, required, and met

• All validity edits are met– Legacy: 70%– CDR: 100%– Result: All data adds up accurately

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FDIC / FFIEC / OCC

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Other Public Sector (US)

• August 2005: Established the Public Sector Adoption Working Group – Leanne Travers (Chair)

• XBRL-US Public Sector Pilot Project Objectives:

To identify public sector XBRL pilot projects To establish pilots throughout federal, state, local public sectors To establish pilots that reflect diverse use case examples of XBRL To establish pilots that are replicable across public sector spectrum To conduct an open, transparent pilot process

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Other Public Sector (US)

• May 2006:

5 Pilots in planning or underway (some pre-date August 2005), others in planning

– U. S. Department of Treasury Pilot Project – US Department of Interior, National Park Service Pilot Project – US Department of Commerce, US Census Bureau Pilot Project – Additional FDIC Projects (post-CDR project)– Department of Housing and Urban Development, Office of

Housing/Federal Housing Administration Pilot Project

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CEBS & COREP

• Building an XBRL Solvency Ratio taxonomy

• Sponsored by the Committee of European Banking Supervisors

• COREP: defining a COmmon REPorting framework around the

solvency ratio (Based on Basel II, Pillar I) for credit institutions and

investment firms under the European Union Capital Requirements.

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CEBS & COREP

Basel II

Directives 2000/12 & 93/6

Country 1

FSA 1

Report 2Report 1

------------------------------------

Country 3Country 2 Country 25

FSA 2 FSA 3 FSA 25

Report 25

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Report 25

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Report 3

----------------------------------------------------------------------------------------------------------------------------------------------------------------

National Regulation

Transposition intonational Legislation

European Law9X,XX% Basel II compatible

National Implementation

XBRL challenge!

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CEBS & COREP

Bank

Risk Management

OperationsCounterparties

Collateral…

Risk Management

OperationsCounterparties

Collateral…

Aggregator

Report

------------------------------

Supervisor

IS Supervisory

ReportsOther data

……

IS Supervisory

ReportsOther data

……

Reception

Presentation, Analysis…Bank operations, controls….

XBRL

instance

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Dutch National Taxonomy Project

• The Ministry of Justice and the Ministry of Finance in a joint effort intend to reduce the administrative burden of businesses by using XBRL to make the composing of reports and exchange of financial data easier.

• Focuses on three important reporting chains:– Reporting of taxes; for instance profits tax, wage taxes,

value added taxes (VAT) and Income taxes– Reporting of annual accounts– Reporting of economic statistics

• Projected Savings to Dutch Business: 350 million euro

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Agenda

• Let’s Imagine:

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Agenda

Aid project

World Bank

USAID

AusAID

..other donorsCustom reports are:• Expensive• Time consuming• Repetitive • Distracting from the real mission

Custom reports are:• “easy to consume”

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Agenda

Aid project

World Bank

USAID

AusAID

..other donorsXBRL is:• Easy to “tag”• Cheap to produce• Keeps the focus on the real mission

XBRL is:• “Heavier initial investment”

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XBRL is here, who knows where it will go

XBRL is to the printed annual report, what the internet is to the printed

Yellow PagesYellow Pages.