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Liv Watson Director of XBRL lwatson@edgar-online

XBRL Implementations. Tuesday, March 04, 2003. Liv Watson Director of XBRL lwatson@edgar-online.com. Agenda. XBRL Primer The XBRL Consortium Spec Status Taxonomy Statues XBRL Implementations APRA FDIC EDGAR Analyst

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Liv Watson Director of XBRL lwatson@edgar-online

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  1. XBRL Implementations Tuesday, March 04, 2003 Liv Watson Director of XBRL lwatson@edgar-online.com

  2. Agenda • XBRL Primer • The XBRL Consortium • Spec Status • Taxonomy Statues • XBRL Implementations • APRA • FDIC • EDGAR Analyst • Microsoft, NASDAQ, and PwC Pilot Project- Special guest Eric Cohen, PwC • Questions?

  3. Actual Rate of Adoption Perceived Rate of Adoption 2001 2003 2005 2007+ Cringley’s Law and Web Sevices Adoption Technology changes less in the short term than we believe;but the long-term impact is far greater than we realize.

  4. The Evolution of Web Services

  5. Board of Directors (Trustees) Executive Committee At Large ISC Representatives 4th 3rd 1st 2nd XBRL Management President Supply Chain Communities International Working Groups Preparer, Private Sector Specification * Standing AU CA JP Accounting Domain IASB* DE 2nd VC Hong Kong Singapore Ireland Korea Spain Intermediaries Sitting Members Members Basel II NZ NL Software & Services Marketing & Comm. UK US Investors/Creditors Education Analyst Research & Grants Provisional Regulators General Ledger Nominating Committee Finance/Audit Committee Academic (insurance) (credit insurance) Public Sector Preparers International Steering Committee Chair Jurisdictions 1st Vice Chair

  6. Implementations "XBRL is a key information technology standard that can be used by bank regulators to provide timelier and accurate data, while reducing burden to all stakeholders.“ -Philip Walenga, Assistant Director FDIC

  7. Key Points • FDIC have a concrete business purpose for using XBRL • FDIC have consensus and commitment within our agency and our regulatory partners to make this work • FDIC are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulators • FDIC have other components in place: standards, specifications and momentum Theviews and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.

  8. Why FDIC Choose XBRL? • XBRL improves how government agencies collect, process and distribute financial information • Think data, not rigid, inflexible forms • Dynamic financial environment needs XBRL-like capabilities to: • Adapt faster to changing business conditions • Collect and distribute data more timely, accurately and comparably • Reduce data collection and usage burden

  9. Reporting Issues • Adaptability - introducing new requirements is cumbersome • Inconsistency – interpretation of requirements may vary across reporting software • Report Preparation - can be a laborious, manual process for some institutions • Data Precision - needs improvement • Timeliness - current process is lengthy • User Needs - integrating data & requirements labor intensive for external analysts

  10. FFIEC Target - Call Reports • Modernize the collection, processing, validation and distribution of financial data • Quarterly Consolidated Report of Condition and Income (Call Reports) • Submitted by 8,000 + banks • 22 schedules, 2,000 plus data elements, 1,500 validation criteria • Instructions 394 pages in PDF file • Relied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.

  11. Potential Beneficiaries • FDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial system • Insures $3.1 trillion in deposits • Supervises 5,600 banks • Custodian for the financial reporting of 8,000+ banks • Manages receiverships for any failed US insured bank or thrift

  12. Potential Beneficiaries (cont’d) • The Federal Reserve Board (FRB) • The Office of the Comptroller of the Currency (OCC) • Banks/Trade Associations • Software Vendors that provide specialized support • Business Analysts • Consumer

  13. Objectives • Reporting Transparency for regulators, investors & depositors • Accuracy, currency and comparability • Adaptabilityto respond to changing business environment and emerging risks • Event driven reports • Efficiencies and Savings in Call Reporting and related processes • Reduce manual labor for agencies and banks • Integrate regulatory reports

  14. Work Accomplished • FDIC, FRB, and OCC initial analysis of Call Report data requirements • FDIC developed draft Call Report taxonomies • FDIC developed proof of concept demonstration • FDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel format

  15. XBRL Call Report Development • Completing analysis of report requirements • Instructions, validation criteria and report forms • FDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March ‘01 to Dec. ‘02 • Complete year end 2002 • Release March 2002 Call Report taxonomies in October – publish to WWW.FDIC.GOV • FDIC creating tool for Call Report Analysts to create and maintain Call Report taxonomies • Complete year end 2002

  16. Under construction • Business Analyst Tool • This is “the reporting form” • All Call Report analysts manage Call Report taxonomies • Not need to be XBRL developer • Art work of the form no longer important

  17. Business Analyst Tool • Replaces MS Word, Adobe PDF and MS Excel files • Integrates forms, instructions and validation criteria

  18. XBRL Components/Terminology XBRL-Specification Rules to governs creation of XBRL compliant files and conformance to the specification XBRL-Taxonomy A collection of financial facts for a certain period of time for a reporting entity. By report purpose, industry and jurisdiction. Schema and Linkbases Schema: dictionary of terms Linkbases: set of links to manage references, labels and relationships XBRL- Instance ‘Output’ result of tagging data using one or more taxonomies XSL - Style Sheet Presentation or transformation of tagged data Framework 1 or more taxonomies =

  19. Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information XBRL Call Report Framework Validation Criteria Report Instructions Business Rules 031/041 Forms Call Report Instance

  20. Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information US Bank Regulatory Reporting Framework Series of Reporting Forms (Document) Branch Application Instance Document Instance Document Instance Document Call Report Bank Holding Company Summary of Deposits Instance Document

  21. Bank and Savings Industry (BASI) • BASI Framework under development • Use by bankers for internal reporting • E&Y, KPMG LLP, PwC, FDIC, FRB, and others are participating • Analyzed a number bank SEC filings • Developed Excel worksheets including balance sheet, income statement, cash flow and notes • Converting now to XBRL format • Expect draft release by year early 2003

  22. Call Report BASI BASI equivalent items electronically mapped to Call Report and automatically filled

  23. North American XBRL GAAP Framework, BASI and US Bank Regulatory Framework General Concepts Assets Liabilities Equity Owner Contributions Owner Distributions Comprehensive Income Income Expenses Document and Entity Primary Terms Cash Held to Maturity Securities Trading Securities Trade Secrets Goodwill Other Assets Minority Interest Equity Common Stock Net Income Extraordinary Items GlobalCommon Document NAFR General Concepts NAFR Primary Terms Bank & Savings Institutions U.S. Bank Regulatory Framework

  24. Common Components

  25. Taxonomies, Implementations Taxonomies US GAAP Framework U.S. Bank & Savings Implementations Call Report FFIEC Call Report Australian Regulator Version 2 Australian Regulator Version 1 2004 2003 2001 2002

  26. Impacts – Near Term • Earlier access to Call Report data for banks, regulators, analysts and public • More accurate data • More timely changes to report requirements • More comparable data for external analysts • Reuse data – banks and regulators

  27. Impacts – Mid to Long Term • Banks automate processing of regulatory reports • Develop specialized edits and reports by bank type or rating • Rely more upon on offsite monitoring • Analysts cover more banks or today’s amount better • Become data centric vs. form centric • Possible integration of reports and holistic view of the frequency of reports

  28. "The market adoption of XBRL will increase the quality and timeliness of Analyst's research and findings"- Mark Schnitzer- Director, Morgan Stanley Dean Witter

  29. What Does @ APRA Contain? • An Electronic Data Collection System (D@A) • A “Returns Management” module (include workflow) • A sophisticated Analysis Environment (data warehouse) • A Reference Data Module (“operational Meta-Data) • A Forms Management module (user-driven forms designs and layout) • A Derivations and Validations module (rules “engine”) • An XBRL Viewer

  30. Major Strengths of @ APRA • Robust – separate server for data collection, workflow-driven processing and analytics (data warehouse) • The data model supports unlimited revisions of data at any time • A single syntax used across the solution for derivation rules, validation rules and analytical processing • Meta-Data – single point in the solution for defining data and rules that are of interest to any part of the system (no hard coding of rules that manage/govern data) • Flexible reporting – the data model allows complex reports to be developed (e.g., comparing an institution with its cohorts) • The forms (defined in XBRL) have an accompanying graphical layout that allows third party applications to present/display the form. • USES XBRL v2.0 – Proven ease of audit and migration

  31. @ APRA CDR Solution Design Regular Data Upload Data Definition (Meta-Data) Repository Quarterly Data Collection Data Derivation And Validation Data Revision Data Analysis Data Extraction & Delivery Security Model Technology Platform Hosting Services

  32. EDGAR Analyst LLC Edgar Analyst was created to offer the marketplace quick access to XBRL market data, financial data, company profile information, and a host of industry-accepted analytical tools, cost-effectively, in one place, via the Internet. Edgar Analyst will evolve into a Global Data Exchange offering these same sets of information and utilities for evaluating investment opportunities in companies traded on stock exchanges around the world.

  33. Market Research JP GAAP DKGAAP With XBRL adoption world wide the market drives a need for mapping XBRL taxonomies and deliver Analytical Tools to the market place NR GAAP Other GAAP Industry Analytical Taxonomies One click translation solutions Mapped Industry Ratio Analysis DK GAAP IAS GAAP US GAAP CA GAAP Only top quality contributors will be asked to participate to this exchange, based on the accuracy and reliability of their data

  34. United States • XBRL US Jurisdiction • US GAAP Taxonomy Development • Bank Regulation • FDIC, FRB, FFIEC – XBRL Call Reports • Credit Analysis • Moody’s Risk Analyst • Bank of America • Dresdner Kleinwort Wasserstein • Investor Relations • Morgan Stanley • Microsoft

  35. XBRL Adoption Spectrum Bank Regulators APRA, FDIC Evangelism Investor Relations Microsoft, Reuters Deployment Tax Authorities, Company Registrars, Internal Reporting Commitment Credit Analysts, Software Vendors, Intermediaries Business Case Investors, Regulators Awareness

  36. XBRL/XBRL Everywhere • Cisco already has the “daily close” • FDIC wants to have real time bank examinations • Company wants to have electronic reporting of 300 mutual funds, rather than paper-based to save money • NCCS wants to stop keying in data for 250,000 organizations at a cost of $5,000,000 per year • Company wants to consolidate 300 different subsidiaries on 100 different accounting systems • What do you want to do better, cheaper or faster?

  37. Concluding Remarks….. Embrace XBRL or .............

  38. XBRL & Web Services: NASDAQ Pilot Eric E. Cohen Chair, XBRL US Steering Committee eric.e.cohen@us.pwcglobal.com

  39. Review: XBRL as Payload

  40. Web Services: ERP Componentization CRM ERP Budgeting, Forecasting Tax planning

  41. Evolution: From Modular Approach ERP AR AP IM PO HR GL GL

  42. To “Build Your Own Module” Transaction Engine GL Financial Reporter Spell Checker Import Export Allocation Engine

  43. Your Next Financial Reporter? http://www.nasdaq.com/xbrl

  44. Excel Investor’s Assistant • Discovery • Analysis • Presentation • Graphics • But why be limited to one application? You know how to WSDL, don’t you?

  45. Whet Your WSDL • www.nasdaq.com/xbrlws/XbrlWebService.asmx?WSDL

  46. Madness to the Methods • Example: GetCompanyFinancialData • This method will return the financial filing for a company based on the fiscal year and quarter. The method is called with companyStockTicker, quarter, and year parameters. • The companyStockTicker is the accepted ticker symbol for the company (i.e. Microsoft = MSFT, Intel = INTC, Dell = DELL). • The quarter parameter is an integer value that represents the filing quarter. Acceptable values for this parameter are 1,2,3,4. • The year parameter indicates the requested fiscal year. The financial statement is returned in the companyXbrl element.

  47. SOAP Request POST /xbrlws/XbrlWebService.asmx HTTP/1.1 Host: www.nasdaq.com Content-Type: text/xml; charset=utf-8 Content-Length: length SOAPAction: "http://www.nasdaq.com/xbrlws/GetCompanyFinancialData" <?xml version="1.0" encoding="utf-8"?> <soap:Envelope xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"> <soap:Body> <GetCompanyFinancialData xmlns="http://www.nasdaq.com/xbrlws"> <companyStockTicker>string</companyStockTicker> <quarter>int</quarter> <year>int</year> </GetCompanyFinancialData> </soap:Body> </soap:Envelope>

  48. SOAP Response • HTTP/1.1 200 OK • Content-Type: text/xml; • charset=utf-8 • Content-Length: length • <?xml version="1.0" encoding="utf-8"?> • <soap:Envelope xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"> <soap:Body> <GetCompanyFinancialDataResponse xmlns="http://www.nasdaq.com/xbrlws"> <GetCompanyFinancialDataResult> <companyStockTicker>string</companyStockTicker> <quarter>string</quarter> <year>string</year> <companyXbrl>string</companyXbrl> </GetCompanyFinancialDataResult> </GetCompanyFinancialDataResponse> </soap:Body> </soap:Envelope>

  49. http Request GET /xbrlws/XbrlWebService.asmx/GetCompanyFinancialData? companyStockTicker=string& quarter=string& year=string HTTP/1.1 Host: www.nasdaq.com This means you can access the service manually from your browser by typing in a URL, such as: www.nasdaq.com /xbrlws/XbrlWebService.asmx/GetCompanyFinancialData? companyStockTicker=MSFT& quarter=4& year=2000)

  50. http Response HTTP/1.1 200 OK Content-Type: text/xml; charset=utf-8 Content-Length: length <?xml version="1.0" encoding="utf-8"?> <financialData xmlns="http://www.nasdaq.com/xbrlws"> <companyStockTicker>string</companyStockTicker> <quarter>string</quarter> <year>string</year> <companyXbrl>string</companyXbrl> </financialData>

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