XBRL and Financial Applications

1. XBRL and Financial Applications Paul Snijders Board member XBRL Nederland Founding member XBRL in Europe Former vice chair XBRL Solutions group Project manager Architecture NTP

2. What do we want as SW vendor • New business opportunities • Government ‘inventing’ new requirement • ‘All’ our customers asking for it • One standard for many possibilities • Minimal investment • in other words: Make some money

3. key to market adoption XBRL: from a software point of view • XBRL with software eyes • XBRL Concepts • Implementation strategy • Threats and Opportunities

4. Will XBRL have an impact on software ? • XBRL and financial applications • XBRL and reporting software • XBRL and ETL vendors (Extract Transform Load) • XBRL and consolidation vendors • XBRL and Business Intelligence • XBRL throughout the reporting chain

5. Taxreporting Data Warehouse Consolidation Reporting Tax Software Logic Logic ERP/GL Business Intelligence Logic Financial Reporting Accounting Logic Current software products • Each application has a proprietary data model • Application have specific logic and business rules • Data is transformed multiple times

6. What is XBRL? • XBRL is just another data format • XBRL is a sophisticated XML implementation • XBRL contains reporting definitions • XBRL has data validation and quality inside • XBRL removes many export formats • XBRL is NOT a standard chart of accounts • XBRL is a very active consortium

7. Externalization of: Impact on • Data exchange format • Data definitions also labels, references • Multiple data models Hierarchical, dimensional and relational • Reporting rules • Validation rules • Business rules • Exports, Queries • Data Dictionary • Application data model RDMB, Cubes • Reporting software • Application logic • Business Logic XBRL is externalization XBRL delivers a complete standardization and externalization of data definition, business rules and reporting requirements

8. Taxonomy Based on Example XBRL Financial or business fact Profit 45.870.000 CEO Bill Gates Common stock 12.500.000 Turnover 168920000 Goodwill 3.400.500

9. Regulator Accountingrules Taxonomy creation Companies Validation Mapping Taxonomy Reporting Validation XBRLReport Validation Compliance checking Analysis How it works

10. Presentation Annual report Label Cash & Cash Equivalents Elements References IAS 16, 2, a Calculation Cash = Currency + Deposits FormulasCash Beginning Balance ≥ 0 Segment2 Prod TV Hifi Segment2 Video Audio XBRL: more than a data definition XBRL Taxonomy Presentation Balance sheet Indirect Presentation Income statement Presentation Cash flow statement Label Kas en Geldmiddelen Label Comptant et Comptant Equivalents Label Geld & Geld nahe Mittel Label Гроші та їх еквіваленти Profit : 45.870.000 XBRL Instance Entity: XYZ Ltd Period FY 2004 Q1, Scenario Budget Actual Currency Euro/US$ M2, Segment1 Benelux EU

11. Report Form set Form set Form set Data types Data types Data types Dutch GAAP Dutch GAAP Dutch GAAP Relations Relations Relations Example taxonomy hierarchy - NTP Per sub/target group Form Sets • Domain specific • Tax Admin • Annual reports • Statistics Data types Dutch Gen-base Generic Elements Netherlands Relations Presentation Calculation Dutch Core IFRS International basis

12. <xbrli:entity>Virtual Company</xbrli:entity > <segment>North</Segment> <xbrli:period> <xbrli:startDate>2004-01-01</xbrli:startDate> <xbrli:endDate>2004-06-30</xbrli:endDate> </xbrli:period> <scenario> <Scenario>Actual</Scenario> </scenario> Context Definition Taxonomy Unit Defintion <xbrli:unit xbrli:id="u0"> <xbrli:measure>iso4217:EUR </xbrli:measure> </xbrli:unit> <ifrs:profit contextRef=“Contex1” unitRef=“Euros” Decimal=“0”>45870000</ifrs:profit> Value Definition Instance document Instance document Simplified

13. Name Address Street Salary Element 1: 4000 Element 2: 203 Element 3: Amsterdam Element 4: 8000 Element 5: KPMG + Element 1: 12000 + Element 2: 8000 + Element 3: 4000 Element 4: Address Element 5: Street Element 6: zip Employee 1 Address 1 Street 1 1300 Employee 2 Address 2 Street 2 1700 Employee 3 Address 3 Street 3 4000 Employee 4 Address 4 Street 4 6000 Sales, 2006 April Actual Budget Simple list Hierachy Name Gross Soc.Sec Insur. Sales 12000 11000 Employee 1 2300 230 130 Employee 2 2700 420 170 Costs 300 200 Employee 3 5000 560 400 Profit 2700 1800 Employee 4 7000 750 600 Sales, 2006 Actual, April Germany UK France Product A 500 400 300 X Product B 1200 700 X Product C 2000 1000 Product D 2500 2400 2000 Relational Multi dimensional Different data models in XBRL

14. Taxonomy guidelines FRTA XML Schema Instance guidelines Xlink Schema FRIS Instance Schema Sofisticated technical fundament XBRL Spec 2.1 Validation & Conformance suite Taxonomy XBRL- Instance 1000+ pages spec 700+ Conformance tests 150+Mb Test set

15. More technical capabilities • XBRL specification 2.1 • Schema driven XML language • Heavy use of X-link • Data structuring • Relational data models • Multidimensional structures • Hierarchical data • Flat structures • Multiple data representations • Fully extensible • Taxonomies • Data structuring • XML and custom data types • Presentation & Calculation

16. And more great material to expect • Link Role Registry (LRR) (100%) • Dimensional taxonomies (90%) • Formula linkbase (80%) • Functions (80%) • XBRL GL (95%) • Versioning (1%) • Approval processes (90%) • Entity taxonomies (0%) • Consolidation linkbase (0%) • Rendering standards (5%)

17. Who is involved in reporting Internal IT departments Finance (Control/Consolidation) Reportees • External • Software vendors • Consultancy • System Integrators • Auditors (also EDP auditors)

18. Software functionalities • Exploring taxonomies • Mapping to applications/Data • Validation (technical) • Compliance monitoring • Audit & control • Transactions in XBRL (XBRL-GL)

19. Opportunities for SW vendors • Single export format • New reporting functionalities • Enhance application data model • Reporting data structures? • Relational/multidimensional • New audit and control capabilities • XBRL GL support • XBRL as application data model

20. XBRL consortium deliverables • Ready to use global standard • Complete data model • Standardization on export formats • Standard transaction level format • Multi language support • Data quality and validation • References to guidelines • Generic business rules • Presentation views • Intrinsic flexibility FREE OF CHARGE

21. Alternatives • Make • Hard coded implementation • Generic implementation • Buy • Ready to use Reporting Module • Generic XBRL Product • XBRL Library /XBRL Engine The biggest question of all: What new solutions can I offer?

22. XBRL as hard coded format hardcoding Appl. Database • Not a generic solution • Recoding on any taxonomy change • No new taxonomies • New coding for new instances Dead end street

23. Complete Reporting Data Model Standard Software Standard Format Financial Report XBRL XBRL Solution Mapping GUI Business Software Generic approach Functionalities Taxonomy Building Instance Creation Validation Compliance Audit & Control XBRL-GL

24. 1 XBRL GUI Build -Make your own XBRL processor - Application development Business Software Business Software Business Software 2 XBRL GUI OEM - Buy XBRL components - Application development GUI GUI GUI Reporting Module Buy - Ready to use XBRL module - Simple implementation 3 XBRL Engine XBRL Engine Options

25. Easiest road map • Embed existing Reporting Module • Provide basic XBRL output • Make use of XBRL functionalities Presentation, Calculation, data validation • Enhance with validation options • Provide taxonomy building options • Embed XBRL data concepts in your application • Support XBRL GL • Support all other XBRL stuff Formulas, functions, dimensions, Conformance suite

26. International standard XBRL XBRL XBRL Reporting XBRL Data Warehouse XBRL exchange format XBRL Logic XBRL XBRL Business rules XBRL ERP/GL XBRL Meta data XBRL Logic XBRL Data models XBRL Financial Reporting XBRL transactions XBRL XBRL Logic Financial application in the future Tax Software Logic

27. XBRL: Threat or opportunity • Transparent and open Data model • You have to support complex technology • Extra maintenance • Possible threat to several solutions • Low license revenue • Open source XBRL • Better serve customers • Only one export format to maintain • New solutions & functionalities • New business opportunities • Extra licenses from new products

28. Todo’s • Knowledge • Build your own XBRL team • Technology • To what extent to provide support • Data • How far to go with data integration? • Business • What can you charge the customer?

29. Market development - thank you XBRL • Global sophisticated standard • Complete set of material • Complete test sets • Ready to use reporting data model • Single format • Reduction of maintenance • Guaranteed use and market demand • Huge market potential

30. “Above all, continue with your enthusiastic contributions to the global development of the XBRL standard. As I said at our last XBRL Conference in Tokyo: Have no doubt, you are changing the world for the better” Chairman Christopher Cox, U.S. Securities and Exchange Commission San Jose, California, Jan. 18, 2006

31. Interesting promoters “One way, perhaps, to distance ourselves from relying on these quarterly earnings forecasts, is to make progress toward real-time disclosure.” Michael G.Oxley , House Committee on Financial Services Washington, March 29, 2006

32. www.xbrl.org Free Taxonomy Viewer Visit the Semansys booth Paul Snijders Board member XBRL Nederland Founding member XBRL in Europe Former vice chair XBRL Solutions group Project manager Architecture NTP paul.snijders@semansys.com