annual bookkeeping report as the primary administrative source for the production of sbs — current...

Annual Bookkeeping Report as the primary administrative source for the production of SBS — current experiences and future plans

Neuchâtel

12-14 September 2011

Tiina Pärson

Statistics Estonia

Annual Statistics of Entrepreneurship Service

Enterprise Statistics Department

Statistics Estonia, Tiina Pärson

Background

According to the Estonian Commercial Code all Estonian enterprises are obliged to submit their annual bookkeeping reports to the Commercial Register 6 month after the end of the economic year.

Electronic data submitting was possible, but in *.txt (Text), *.pdf (Portable Document Format) or *.rtf (Rich Text Format).

Information on income statement, balance sheet and cash flow statement was entered electronically by Centre of Registers and Information Systems.

Inappropriate timing - electronic format for production SBS was available15 months after the reference year.


Annual Bookkeeping Reports electronically: preparatory stage (1)

Since 1 of January, 2010 commercial undertakings, non- profit associations and foundations are obliged to provide their annual bookkeeping reports only electronically.

The goverment working group was organised. Representatives from Ministry of Justice, Ministry of Finance, Centre of Registers and Information Systems, Board of Auditors, Chamber of Commerce, Statistics Estonia, Tax and Customs Board.



Main tasks of the preparatory working group:

To create form for annual bookkeeping reports which enables to submit main annual bookkeeping reports and appendices electronically.

To create the list of variables needed for statistical data production to avoid double data collection.

To unify concepts i.e to create integrated taxonomy. To create the common environment for data submitting.

The XBRL (eXtensible Business Reporting Language) was chosen as data transmitting standard.



Government working group

Taxonomy group Technical group

Workshop group


Annual Bookkeeping Report electronically: preparatory stage (4)

Main tasks for the group of taxonomy

arrange elements of taxonomy definitions of variables arrange administration of the taxonomy system define the needs to change legal acts to inform the data providers about the changes in data submission

Main tasks for the technical working group

description of the task for the technical application afterward realization of the task


Cooperation of various institutions

Ministry of Justice Ministry of Finance Ministry of Economic Affairs and Communications Statistical Office Tax and Customs Board Estonian Accounting Standard Board Estonian Board of Auditors Bank of Estonia Chamber of Commerce

Taxonomy working group


Taxonomy

Government of Estonia approved the first Estonian GAAP taxonomyforms for profit-oriented entities and non-profit associations andfoundations on 17.12.2009 Since 01.01.2010 the submission of annual reports in XBRL ismandatoryExceptions: Companies using IFRS Companies compiling consolidating annual report Companies compiling liquidation and closing reports Companies whose main activity is to provide financial services Companies with state ownership, who report to Ministry of Finance Branches of foreign companies registered in Estonia


Taxonomy elements

Taxonomy elements can be divided in two: Main reports (balance sheet, income statement, cash flow statement,

equity statement) — mandatory, Notes — materiality principle (may be ignored if no effect)

EKOMARparameters

thereof in annual bookkeeping reports

not included

TOTAL main report notes

641 381 59,4% 72 11,2% 309 48,2% 260 40,6%


Main obstacles

Materiality principle

The materiality principle states that the requirements of any

accounting principle may be ignored when there is no effect on the

users of financial information. The main disadvantage of this

requirement is that the principle does not allow receiving all variables

needed for statistical data production from the annual bookkeeping

Reports. Accounting year could be different from calendar year Possibility to add elements – free text (not yet usable for

statistical data production) Consolidated reports


Amended Bookkeeping law

Amended Bookkeeping Law Article 141 “Taxonomy of the annual bookkeeping report” (unofficial translation):

State or local government institution or other public law functions executing institution cannot require from accounting entity submission of taxonomy data which accounting entity has according to the law submitted to the Commercial Register for publishing with annual report

2 year transition period was foreseen Starting from May 2010 Statistics Estonia started to receive annual bookkeeping reports data in XBRL format via X-road (an environment that would facilitate making queries to different main state databases in Estonia)


Harmonization of statistical surveys using information from annual bookkeeping reports (1)

To avoid double data collection, it was decided to prefill EKOMAR questionnaires with the data from annual bookkeeping reports

Therefore was important to simplify the use of data from Annual bookkeeping reports and make easily understandable for data providers which data from annual bookkeeping reports are used in prefilled statistical questionnaires.

The biggest changes were made in module “Income statement”(profit and loss account).

The statistical questionnaire is drawn up similar as the profit and loss account, as well as the variables are in the same order and therefore easily understandable.


Harmonization of statistical surveys using information from annual bookkeeping reports (2)

It was taken into account that unification leads to change the codes of variables, change the data checks in questionnaire instructions, changes in data production software (input, transfer, production and output

software)

At the same time unification

facilitates the creation of correspondence tables — the same correspondence table for several surveys could be used,

simplifies the preparatory work for the data publishing — no need to use additional correspondence tables to add up the same variable from different surveys, which were coded differently,

will help in the creation of the universal data production software (technical development is in the phase of creation)


New correspondence tables (1)

The new correspondence rules and tables had to be created to transmit data from administrative data files to statistical data files as the XBRL uses the specific coding system of elements.

The identification elements (ID-elements) in taxonomy are often very long and textual

ID-element Number of symbols

PropertyPlantAndEquipmentHypercubeExcludedElementsOfAcquisitionOfLandAndBuildingsExceptNewBuildingsAndRenovations

113

PropertyPlantAndEquipmentAcquisitionsAndAdditionsAcquisitionOfLandAndBuildingsExceptNewBuildingsAndRenovations

110

PropertyPlantAndEquipmentAcquisitionsAndAdditionsAcquisitionOfLandAndBuildingsExceptNewBuildingsAndRenovations

110

BiologicalAssetsFairValueMethodCurrentAssetsDecreaseOfValueFromDueToProductionOfAgriculturalProducts

100

BiologicalAssetsFairValueMethodCurrentAssetsDecreaseOfValueFromDueToProductionOfAgriculturalProducts

100


New correspondence tables (2)

New codes are limited with 10 symbols, convenient for the SBS data production (income statement (extract)

Row ID column in XBRL Statistical code

Müügitulu Revenue Ka_50_1Muud äritulud Other Income Ka_60_1Põllumajandusliku toodangu varude jääkide muutus ChangesInInventoriesOfAgriculturalProduction Ka_70_1Kasum (kahjum) bioloogilistelt varadelt ProfitLossFromBiologicalAssets Ka_80_1Valmis- ja lõpetamata toodangu varude jääkide muutus ChangesInInventoriesOfFinishedGoodsAndWorkInProgress

Ka_90_1

Kapitaliseeritud väljaminekud oma tarbeks põhivara valmistamisel

WorkPerformedByEntityAndCapitalisedKa_100_1

Kaubad, toore, materjal ja teenused RawMaterialsAndConsumablesUsed Ka_110_1Mitmesugused tegevuskulud OtherOperatingExpense Ka_250_1Tööjõukulud EmployeeExpense Ka_260_1Põhivara kulum ja väärtuse langus DepreciationAndImpairmentLossReversal Ka_270_1Muud ärikulud OtherExpense Ka_280_1Ärikasum (-kahjum) TotalProfitLoss Ka_290_1Finantstulud ja -kulud FinancialIncomeAndExpense Ka_330_1Kasum (kahjum) enne tulumaksustamist TotalProfitLossBeforeTax Ka_340_1Tulumaks IncomeTaxExpense Ka_350_1Aruandeaasta kasum (kahjum) TotalAnnualPeriodProfitLoss Ka_360_1Müüdud toodangu (kaupade, teenuste) kulu CostOfSales Ka_390_1Brutokasum (-kahjum) TotalGrossProfitLoss Ka_400_1Turustuskulud DistributionCosts Ka_410_1Üldhalduskulud AdministrativeExpense Ka_420_1


Sample of the created statistical code


New formulas and rules to calculate statistical variables

New formulas and rules to calculate statistical variablesVariable code in

EKOMAR

Name of the variable in EKOMAR

FormulaEMTAK = NACE

mc.c_10 Turnover m.Ka_50_1+m.L34_100_1+m.L34_110_1

mc.c_11 sale to non-residents (export) m.L32_90_1-m.L32_10_1

mc.c_12 sale to EU Member States m.L32_40_1-m.L32_10_1

mc.c_755 Other revenue m.Ka_60_1

mc.c_760 profit from the sale of tangible assets m.L34_10_1+m.L34_20_1+m.L34_30_1+m.L34_40_1

mc.c_765 profit from revaluation m.L34_50_1+m.L34_60_1

mc.c_21 operating subsidies for agriculture activities

mc.c_20 operating subsidies

mc.c_22 Change in work-in-progress and finished goods inventories

m.Ka_90_1

mc.c_35 Profit/loss from biological assets m.Ka_80_1

mc.c_40 Capitalized self-constructed assets m.Ka_100_1

mc.c_100 Merchandise m.L35_30_1+m.L39_30_1 EMTAK<450000 or EMTAK>470000

mc.c_100 m.L35_30_1+m.L39_30_1+m.L35_20_1+m.L39_20_1+m.L39_240_1+m.L40_180_1+m.L41_180_1

EMTAK>=450000 and EMTAK<490000

mc.c_110 Services purchased for resale


Data collection using prefilled questionnaires

SE downloads annual bookkeeping reports to ADAM (a technical development is in the testing phase)

Afterward the administrative data are converted into the statistical format by a transformation system (VAIS)

The statistical questionnaire is prefilled in eSTAT. Prefilling is planned to be close to real- time. The first experimental prefilling was done since May to August 2011, once a week.

The information from annual reports will be preloaded to the questionnaires and data providers are obliged to fill the blank gaps — information not available from annual report

The double data collection will be avoided and the response burden of enterprises will be diminished

The eSTAT should be improved for the year 2012 i.e. for the reference year 2011 data collection


Thank you!

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