19 th XBRL International Conference Paris, June 22-25 2009

1. 19th XBRL International ConferenceParis, June 22-25 2009 Status FEE XBRL Task Force, what is happening around Europe Philip Johnson FEE Deputy President Chairman FEE Auditing Working Party and FEE XBRL Task Force

2. Federating Member Bodies • 43 professional institutes of accountants • 32 European countries, including all 27 EU • > 500.000 professional accountants

3. Agenda • Why should auditors in Europe be interested in XBRL? • Will auditors be asked to provide additional levels of assurance on XBRL information? • What has FEE done to consider the matter? • Where are IASB in the debate? • What is IAASB doing? • What are some of the other issues for auditors surrounding XBRL?

4. XBRL around Europe (1) • Current examples on the use of XBRL around Europe • Belgium: over 90% of the companies use XBRL for financial statement filing which is pre-formated; • France: XBRL filing of annual statutory financial statements is accepted although little progress has been made with public companies; • Italy: the XBRL implementation has started; around 100,000 financial statements are expected to be filed under the new format;

5. XBRL around Europe (2) • Netherlands: XBRL information prepared in agreement with the tax authorities will be accepted for tax purposes; banks have developed an extension of the Dutch taxonomy and are ready to start using it; • Spain: the use of XBRL has been approved by the authorities to file accounts; • Sweden: since 2006 electronic filing has been permitted by the legislator. For the year 2008, 60 fully electronic XBRL tagged annual reports have been submitted via the official internet service provided; • UK: there is a limited use of XBRL. Parallel projects are taking place, for audit exempt companies, abbreviated accounts can be filed in XBRL.

6. FEE and XBRL • FEE has an XBRL Task Force combining financial reporting and auditing • First meeting in October 2008 brainstormed on possible FEE actions and considered types of assurance which may be requested; • Second meeting in March 2009 considered developing a project proposal; • A Policy Statement to educate the accountancy profession and stakeholders is being drafted.

7. Assurance from auditors • What type of assurance should be given: • Reasonable assurance • Limited assurance • Agreed upon procedures • To whom: • Management • Shareholders • Third Parties • And when?

8. XBRL Diagram • Tagging by bar code • Database integrity by IT general controls • Style sheets • Taxonomy • Taxonomy extensions • Instance documents

9. FEE Policy Statement on XBRL (1) • FEE Policy Statement on XBRL main aim is to increase awareness in and outside the profession • What is XBRL? • What are XBRL “Taxonomies”? • What are “Extensions” of a Taxonomy and why are they used? • What is “tagging”? • What is an “Instance Document”? • What is a “Style sheet”?

10. FEE Policy Statement on XBRL (2) • The Policy Statement also deals with: • Use of XBRL • How does XBRL change the preparation of financial statements • Implications of XBRL for statutory auditors • IAASB project on XBRL • XBRL Advantages and Disadvantages • Implications of XBRL for third parties • Practical implications

11. IFRS XBRL Taxonomy • The International Accounting Standards Board (IASB) is responsible for the implementation of XBRL developments adapted to their latest accounting standards. • On 2 April 2009, the International Accounting Standards Committee (IASC) published the final IFRS XBRL Taxonomy 2009. • The IFRS XBRL Taxonomy 2009 is a translation of International Financial Reporting Standards (IFRSs) as of 1 January 2009 into XBRL. • FEE does not believe auditors should provide assurance on the IFRS XBRL Taxonomy.

12. IAASB XBRL Project • The International Auditing and Assurance Standards Board (IAASB) approved a project that includes: • Consultation to obtain views about the IAASB’s plans to develop a pronouncement to address the performance and reporting expectations of the auditor in connection with audited financial statements that are accompanied by XBRL data (Phase 1 by March 2010); and • Subject to no indication to the contrary in the public interest arising from Phase 1, the development of a pronouncement on the responsibilities of the auditor in an audit of financial statements when audited financial statements are accompanied by XBRL data (Phase 2 by December 2011). • No new (non-audit) assurance or related services standard would be developed.

13. Other Issues on XBRL for the Profession • General lack of awareness, understanding and knowledge; • Unease about change and the « unknown  » • On which steps is audit or assurance needed? • Change in audit approach and/or opinion? • Issues with electronic signature • IAASB pronouncement might come too late

14. Next Steps for FEE • Continuous contribution to IAASB project • Consideration of assurance requirements beyond financial statement audits • Educating the profession and third parties

15. Questions

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