XBRL for regulatory reporting Belgian projects

1. XBRL for regulatory reportingBelgian projects

2. Agenda • XBRL projects by Belgian regulators • National Bank of Belgium • Banking, finance and insurance commission • Federal Public Service Finance • Agenda • The current situation • Why XBRL • Project steps

3. XBRL for regulatory reportingThe National Bank of Belgium Camille DÜMM Central Balance Sheet Office

4. The CBSO at a glance • Legal changes in 1975 and 1976 • Most Belgian companies must legally publish their annual accounts • Standardization of annual accounts Set up of the CBSO on 17 April 1978 : • to ensure speedy and efficient circulation of information available in annual accounts • to arrange the statistical processing of the information gathered

5. The CBSO at a glance • 1993 Introducing filing of annual accounts on floppy disk (text file) • 2000 Spreading on microfilm abandoned in favor of images-CD (PDF file) • 2002 Supplying copies of filed annual accounts through the Internet • 2004 Filing annual accounts through the Internet

6. The CBSO at a glance - data • In 2003 : • 269.192 companies • 296.673 annual accounts • 4.215.000 pages

7. Current processing of annual accounts Electronic Output Data loading Validation PDF file Text file Paper Images database Quality Check Internet Images CD Image CD Paper Accounting data Scanning Figures Statistics Data entry Studies

8. The XBRL Project - Justification • Why to change for XBRL ? • Current processing system rigidity • Future implementation of IAS/IFRS • Purposes of the XBRL project • Introduce flexibility in our process • Make the maintenance easier • Harmonization of the data format and exchange with other regulators • Prepare the electronic filing of annual accounts drawn up according to IAS/IFRS

9. The XBRL project - Process

10. The XBRL Project - Steps • 2005 • Development of a taxonomy based on the Belgian GAAP • Publication of the taxonomy on the website and contact with software companies • 2006 • Internal filing process adaptation • Development of a application allowing the companies to fill in their annual accounts on Internet in XBRL • 2007 • Filing normalized annual accounts in XBRL

11. Financial reporting for supervisory purposes : the CBFA project. Giancarlo PELLIZZARI Banking, finance and insurance commission Prudential policy

12. Agenda • Current situation • New European accounting context and its implications • Financial reporting : the Belgian and European packages • XBRL within the CBFA • Planning use of XBRL

13. Current situation • Scheme B : market financial reporting (B/S – P&L – limited notes) • Scheme A : prudential reporting consisting of : • prudential reporting (Capital regulation – banking risks) • statistical data (e.g. European Central Bank, National Bank of Belgium, etc.) • financial reporting (analysis of financial market information and banking risks)

14. Current situation • Scheme A covers : • statutory basis (59 banks) • territorial basis (58 banks) • consolidated basis (24 banks) • More than 10.000 data to be delivered on : • monthly basis • quarterly basis • bi-annual basis • annual basis

15. Current situation • Information is processed to obtain the Bank Performance Report, allowing individual and group analysis : • rotations • comparisons between banks • Peer Group analysis • outlyer analysis • vertical and horizontal analysis • Bank Performance Report is an XML based tool

16. New European context and its implications • Starting January 2005, all European listed companies must use IAS/IFRSs for consolidated financial statements. • All Belgian banks and investment firms that must present consolidated accounts will report to the supervisor according to a standardised IAS/IFRSs scheme A (Royal decree not yet approved). • Difference between BE GAAP and IAS/IFRS : • BE GAAP  fixed layout • IAS/IFRSs  free layout

17. New European context and its implications • Standardized reporting scheme A for IAS/IFRS consolidated financial statements will enhance : • comparability • level playing field.

18. Financial reporting : The Belgian and European packages • Limited to IAS/IFRS financial reporting. • Consolidated basis. • Based on Word and Excel tables, with extensive references to IAS/IFRSs having an XBRL taxonomy in mind. • Belgian scheme : published for consultation until end of October 2004. • European scheme : project within Committee of European Banking Supervisors (CEBS).

19. XBRL Within the CBFA • The sector asked to consider using XBRL as reporting standard. • After evaluation of different possibilities, XBRL was considered as the best solution in a IAS/IFRS environment because : • XBRL handles non standardized financial reporting formats • taxonomies will become available • easily extendable to meet specific Belgian supervisory needs. • From an IT perspective, the migration to XBRL is logical as the current reporting standard is XML.

20. Planning use of XBRL • XBRL : • Analytical XBRL work based on final version of reporting package, incorporating the final IFRS taxonomy in 2005. • First implementation of XBRL : to be determined in function of availability of IAS/IFRS taxonomies. • First use of new reporting scheme in 2006 : XML for at least one year.

21. XBRL for Tax reportingFPS Finance Dirk Quina Federal Public Service Finance

22. Background • Typical Process: Input Processing Output Paper based Flows • Key in data • Processing of data by mainframes • Results: internal and external use

23. Background • Gathering “Electronic” data: • Specific channel for specific purposes • Electronic devices (Tapes, disks, …) • Problems reading and processing information • Electronic data exchange • Project started mid 90’s • Focus on security • Real transactions

24. Existing projects • Edivat: • VAT declarations • Professional users (accountants, fiscal experts,…) • Multiple declarations • Traditional EDI • EDIFACT • Value Added Network • Registration procedure

25. Existing projects • Intervat: • VAT declaration: • Via Internet • XML • Intelligent form • Digital Signature • Acknowledgement • Finprof: • Withholding taxes • Single declaration – multiple declarations • Results of back-end processing via mail

26. Recent evolutions • On-line transactions: • Different domains: • Customs • Land Property • Communication with Banks • Exchanging information with other governmental organizations • Traditional EDI: • Use of secure channel • XML- files

27. Strategic Options • Increasing importance of electronic data exchange • Use of common standard: • Internal applications • End user Applications • Within government • One platform for exchanging information • Internal • External

28. Strategic Options • Focus on XML • XBRL • International context: • OASIS • OECD • Tax administrations • Professional users • Not a strategic goal as such, BUT: part of global strategy

29. Planned actions • “Existing” applications: • Study Client listing (VAT) • Conversion VAT declaration • Conversion Intracom listing • Study: • Analyzing existing processes • Existing taxonomies • Selecting 3 major domains • Roadmap • Timeframe: 2005

30. Contacts • National Bank of Belgium Camille Dümm - Central Balance Sheet Office camille.dumm@nbb.be • Banking, finance and insurance commission Giancarlo Pellizzari - Prudential policy giancarlo.pellizzari@cbfa.be • Federal Public Service Finances Dirk Quina dirk.quina@minfin.fed.be