Alan Teixeira General Manager – Standards and Quality Assurance

1. The NZX Taxonomy Alan Teixeira General Manager – Standards and Quality Assurance Institute of Chartered Accountants of New Zealand May, 2004

2. Session Outline • Overview of the NZX Taxonomy • Integrating the NZX Taxonomy • The feedback loop • Barriers and challenges

3. The NZX Taxonomy The NZX Taxonomy documents the NZX Appendix 1 form using XBRL An XBRL taxonomy is a description and classification system for the contents of financial statements and other business reporting documents. XBRL taxonomies can be regarded as extensions of XML Schema, augmented with written documentation and a number of additional XML Linking (XLink) files. Taxonomies represent up to hundreds of individual business reporting concepts, mathematical and definitional relationships among them, along with text labels in multiple languages, references to authoritative literature, and information about how to display each concept to a user. www.xbrl.org

4. Appendix 1 extract

5. Naming the Elements • If an item required to be disclosed by NZX is also part of the IFRS-GP Taxonomy or the NZ-GAAP Taxonomy we use that element name Appendix 1 NZ-GAAP IFRS-GP NZ-GAAP NZX IFRS-GP NZX NZ-GAAP

6. Appendix 1 extract NZ-GAAP: Operating Surplus Deficit Before Tax

7. Appendix 1 extract IFRS-GP: Income Tax Expense (Income)

8. NZ-GAAP: Operating Surplus Deficit After Tax Appendix 1 extract

9. IFRS-GP: Extraordinary Items Income Expense, after tax Appendix 1 extract

10. Appendix 1 extract NZX: Operating Surplus (Deficit) Change Percentage

11. Shared Elements • The goal is to assist with comparability of data • Appendix 1 Financial Statement Elements: • Approx 60 other NZX elements • (related to disclosures outside the financial statements) • NZ is moving to IFRS, increasing comparability further

12. The Feedback Loop • NZX has issued a revised Appendix 1 • Aligned elements and names to NZ GAAP and IFRS • Redesigned the basic form, for clarity • XBRL imposes structure on the data capture process • Extending a taxonomy and using IFRS and NZ GAAP leaves no doubt about what the NZX requires and what analysts get

13. Barriers and Challenges • Taxonomy Maintenance • Building a taxonomy before the IFRS-GP Taxonomy is in place • The move to IFRS – a major shift for the NZX • Creating a pure extension taxonomy • Software • Ease of use • Dealing with Tuples and Contexts consistent with the Financial Reporting Taxonomy Architecture • Equivalency • Our goal is to provide a simple element naming protocol to users (preparers and analysts), and encourage alternative structural representations.

14. Summary • Project First Step has helped us: • Simplify the NZX listing requirements • Provide feedback to the XBRL Community • Build a useful tool, that is able to be expanded and modified relatively simply • This is an evolving technology, but those with insight can already see the power and benefits that common terms and the special features of XBRL can bring.

15. The NZX Taxonomy Alan Teixeira General Manager – Standards and Quality Assurance Institute of Chartered Accountants of New Zealand May, 2004