japan fsa's xbrl projectarchive.xbrl.org/17th/sites/17thconference.xbrl.org... · 5/1/2008...
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Japan FSA's XBRL Project
- Launch of New Public Disclosure System with Mandatory XBRL -y
May 2008
Toshinori KobayashiToshinori Kobayashi
Financial Services Agency, The Japanese Government
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Outline of EDINET
Electronic Disclosure for Investors’ NETwork
•Electronic disclosure system under the Financial Instruments and Exchange ActFinancial Instruments and Exchange Act
–Used for Annual Reports, Semi-annual Reports, Q t l R t S iti R i t ti St t tQuarterly Reports, Securities Registration Statements, etc.
L h d i J 2001•Launched in June 2001
•Number of issuers (Annual Report):Number of issuers (Annual Report):–About 5,000 companies (mainly listed companies)
About 3 000 investment funds2
–About 3,000 investment funds
Issues of previous EDINET HTML format
• No function for downloading reusable data
• Investors can browse information on Web browsers but need to retype data when ypconducting analysis thereof.
EDINETRetype
HTML HTML
Browse Analysis
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EDINET Renovation Project XBRL format
• By introducing the XBRL download function, investors can analyze the financial informationinvestors can analyze the financial information efficiently.
N EDINETNew EDINET
Browse
XBRLHTML
AnalysisyXBRL
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EDINET Renovation Project– Timeline
J F b 2007 1st Pil t P
Aug 2006 Start System & Taxonomy development
Jan-Feb 2007 1st Pilot ProgramTaxonomy test (Offline test)50 companies participated
Jul-Aug 2007 2nd Pilot Program
50 companies participated
System & Taxonomy test (Online test)
Feb 8th 2008 Release Taxonomy (Final version)
System & Taxonomy test (Online test)1,200 companies participated
Feb 8th, 2008
Mar 17th 2008
Release Taxonomy (Final version)
Launch new EDINET system
http://www.fsa.go.jp/singi/edinet/20080208.html
Mar 17th, 2008 Launch new EDINET system
- XBRL filing will be mandated from the first quarterly report in FY 2008
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from the first quarterly report in FY 2008
EDINET Renovation Project– Scope of XBRLScope of XBRL
• Consolidated and Non-consolidated financial statementsstatements– contained in Annual report, Semi-annual report,
Quarterly report and Securities registration statementQuarterly report and Securities registration statement– excluding notes and non-financial information
• Japanese GAAP filers– excluding US GAAP filers, IFRS filers, etc.
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EDINET Renovation Project
• XBRL filing of financial statements is mandatedXBRL filing of financial statements is mandatedin principle.
• XBRL data is open to all investors and analysts.
• The financial information of 5,000 companies and 3,000 investment funds is XBRLized,
O f th t d d XBRL tOne of the most advanced XBRL systems in the world
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EDINET Renovation Project– Impact of XBRLImpact of XBRL
- From “Readable Information”To “Usable Information”To Usable Information
XBRL provides the strategic solution to Investors.
- Providing “Global infrastructure” with “Global Technical Standard”with Global Technical Standard
XBRL encourages companies and investors to active more globally.
Global, transparent and vibrant market
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Feedback from EDINET Renovation Project
Topics• Road to Mandatory XBRL
p
• Extraction of Account Items• Time & Difficult Point to Prepare• Time & Difficult Point to Prepare
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Feedback from EDINET Renovation Project– Road to Mandatory XBRLRoad to Mandatory XBRL
Hurdle for mandates Actions
Taxonomy Quality EDINET Advancement Council & Working Group
System Quality Taxonomy Review (Public, Expert, Industry)
User’s Guideline Quality Pilot Program
XBRL Tools Enhancement Communication with Tool Vendors
Filers Familiarity
Vendors
Seminar for Filers
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e s a a y Se a o e s
Feedback from EDINET Renovation Project– Road to Mandatory XBRLRoad to Mandatory XBRL
This council has been established to make collaborative EDINET Advancement efforts with EDINET stakeholders.Members: industry, analysts, CPA, stock exchanges and others
Council & WG
Taxonomy Review 1st review by industries & experts, 2nd review by public Several thousand comments were generated.To modify the taxonomy took 3 months per review
Pilot Program
To modify the taxonomy took 3 months per review
Two pilot programs were held in January and July 2007.
Communication with Tool Vendors
Many collaboration to enhance XBRL preparing environment.
Seminar for Filers30 seminars were held and attended by 4,000 companies.
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Feedback from EDINET Renovation Project– Extraction of Account ItemsExtraction of Account Items
Cover all account items used in the
1.Concept of account items coverage
practiceCoverage - 90%Num. Items – 4,700
over
age
Co
Cover only account
Less itemsLess items
items based on accounting standards
Numberof Items
More coverage,- Less onerous for preparerMore coverage,- Less onerous for preparer
Less items,- More operable for preparer- Better performance for all users
Less items,- More operable for preparer- Better performance for all users
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Feedback from EDINET Renovation Project– Extraction of Account ItemsExtraction of Account Items
Accounting laws and standards Common practice 50,000 items 2.EDINET Taxonomy Development Process
Extrac
(extracting based on laws) (extracting based on historical data)
s <Step 1> ・Standardize account items ct accoun
(grouping same concept)
30,000 items nt items
s <Step 2> ・Select major account items (frequency of use)
Group A(Account items based on laws)
Group B(Account items based on CP) S
2,500 items 2,200 items
・Set Concept layer (Japanese/English Label, Reference) ・Set Relationship layer (Presentation, Calculation, Definition)
Set inform
13EDINET Taxonomy 4,700 items
mation
Feedback from EDINET Renovation Project– Time & Difficult Point to PrepareTime & Difficult Point to Prepare• Estimated time spent on preparing XBRL compared to
previous EDINETprevious EDINET – Analysis of questionnaire data (2nd Pilot Program)
Initial year Subsequent yearInitial year Subsequent year
Increase >100%[22%]
Decrease[0%]
Unclear[5%]
Increase >100%[6%]
D
Unclear[6%]
[22%]Same as before[14%]
[ ]Increase50%-100%[28%]
Decrease[4%]
Increase <50%[9%]
[ ]
Increase <50%[6%]
Same as before[50%]
14Increase 50%-100%[50%]
[6%]
Feedback from EDINET Renovation Project– Time & Difficult Point to PrepareTime & Difficult Point to Prepare• Difficult point to submit
A l i f ti i d t (2 d Pil t P )– Analysis of questionnaire data (2nd Pilot Program)
Difficult PointTaxonomy Quality
•No major issue is found that disturbs b i i
Difficult Point
System Qualitysubmissions.
XBRL Creation Tools
User’s Guideline Quality •Obtaining XBRL report creation tools•Understanding how to use the tools•Understanding how to create the XBRL
Filers Familiarity
Enhancementg
report and how to submit to EDINET•Much work beyond the expectations•Cost
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y
Feedback from EDINET Renovation Project– Time & Difficult Point to PrepareTime & Difficult Point to Prepare• Other Difficult point to submit
A l i f ti i d t (2 d Pil t P )– Analysis of questionnaire data (2nd Pilot Program)
•Identifying the cause of error
•Setting of the English labelg g
•Choice of the proper items from the taxonomy
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Feedback from EDINET Renovation Project– Time & Difficult Point to PrepareTime & Difficult Point to Prepare• Preparation for Mandatory Filing
A l i f ti i d t (2 d Pil t P )– Analysis of questionnaire data (2nd Pilot Program)
<Technical Issues>•Selecting and familiarizing with an XBRL tool•Early commencement of creating XBRL reporty g p
<Accounting Issues>•Selection of items from EDINET Taxonomy•Selection of items from EDINET Taxonomy•Consensus-building with auditor
<Oth I ><Other Issue>•Securing human resources and budget
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Future Issues
Filers Domestic Issues
N t N fi i lInvestors
Filers
Scope of XBRL-Requirements-Familiarity
– Notes, Non-financialsAnalysts
Global MarketsNew technology adoptionBest
Practice
– Dimensions, Versioning, Rendering, Formula
Accounting Rules
Global Markets
ChangesJFSA
Accounting Rules
XIIInternational IssuesNew
TechnologyXII
Technology Providers
Multinational InteroperabilitySoftware
18Technology Providers So a e
Future Issues- Multinational InteroperabilityMultinational Interoperability
• To establish a global market, corporate financial information in all countries should be used in a crossinformation in all countries should be used in a cross-border fashion
• Differences in data formats for financial information among countries may interfere with global usage.
To maximize the benefits of XBRL as global o a e e be e s o as g obainfrastructure, It is necessary to ensure multinational interoperability y p yand comparability of XBRL through global cooperation.
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Future Issues- Multinational InteroperabilityMultinational Interoperability
Policy & Rules Cooperation among
R d i &
y Cooperation among Regulators
Rendering & Viewing
Consistent Instance Creation rules
Consistent adoption and implementation
of taxonomies
Technical alignment of
Cooperation among Taxonomy Ownersalignment of
XBRL components
Taxonomy Owners
JFSA, IASCF, EC and SEC has been discussing towards
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, , g”Multinational Interoperable Architecture”.
Future Issues- Multinational Interoperability
<Process Overview>
Multinational Interoperability
Identify comparison pointsCompare 3 taxonomiesEvaluate differences and their impactsPrioritize the points to be “interoperable”Decide action items for each point
Identify Compare Evaluate Recommend
Feedback loop
We are here!!
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