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Agenda

XBRL: Implementing XBRL in the international environment Daniel Roberts National Director of Assurance Innovation Chair, XBRL-US Steering Committee May 9, 2006. Agenda. What is XBRL, and Why does XBRL matter What is happening Internationally? Investment markets Governmental activity

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Agenda

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  1. XBRL: Implementing XBRL in the internationalenvironmentDaniel RobertsNational Director of Assurance InnovationChair, XBRL-US Steering CommitteeMay 9, 2006

  2. Agenda • What is XBRL, and Why does XBRL matter • What is happening Internationally? • Investment markets • Governmental activity • Fundamentals for identifying an XBRL project • Implementing an XBRL project/environment • Regulator • Internal reporting • NGO / Funding Agency

  3. What is XBRL XBRLis to the printed annual report, what the internet is to the printedYellow Pages.

  4. What is XBRL? • An industry standard for the publishing, exchange and analysis of financial reports and data. • Information is entered only once using an Internet-based tool for preparing and publishing all financial documents with automatic conversion to various formats • Information may be reliably extracted and analyzed across companies with no manual intervention • Supports current accounting standards

  5. What is XBRL? XBRL Ledger XBRL External Reporting Internal External Investment Business Processes Processes Financial Financial and Lending Operations Reporting Reporting Analysis Financial Publishers Companies Investors Participants Participants and Data Aggregators Trading Management Regulators Academics Auditors Partners Accountants Software Vendors

  6. What is XBRL? • XBRL adds to XML: • Multi dimensional financial data representations • Financial reporting vocabularies (taxonomies) • Aliases and other definition relationships • Mathematical relationships between concepts • Flexibility about how to present items to users • Structure for authoritative policies and guidance Reporting apps need these even when using XML Definitions cashCashEquivalentsAndShortTermInvestments References GAAP I.2.(a) Instructions Ad Hoc disclosures Presentation Receivables / Les créances/… XBRL Item “200” Label US $ FY2004 Budgeted FormulasCash ≥ 0 Calculations Cash = Currency + Deposits

  7. The Gartner Hype Cycle: 2004

  8. The Gartner Hype Cycle: 2005

  9. Public Taxonomies Time 2000 2001 2002 2003 2004 2005 2006 XBRL Taxonomy Growth February, 2005 US GAAP C&I US GAAP Bank US GAAP Ins SEC Certification Mgmt Report Accountants Report MD&A This does not include any private taxonomies such as those prepared for statutory purposes. Nov, 2005 General Ledger June, 2004 IFRS GAAP NZ GAAP UK GAAP July, 2005 China Framework IFRS GAAP US GAAP Invest Mgt January, 2004 UK GAAP 2.0 Canada GAAP June, 2001 General Ledger

  10. Tools Time 2000 2001 2002 2003 2004 2005 2006 XBRL Tools Growth(Representative Listing) FDIC Vendors DBI Financial Systems, Inc.FinArchFRS Global Financial Reporting & AnalyticsIDOM, Inc.Information Technology, Inc.Fidelity Regulatory SolutionsJack Henry & Associates Inc. Semansys Integrator Semansys Analyzer Core Filings Microsoft Business Solutions Snappy Reports Carthesis FR Solutions J2R Batavia Data Driver Semansys Deployment Manager Metapraxis Adobe DecisionSoft True North High Ridge Technologies UBMatrix Automator Pro IBS Open Digital Reporting Ipedo EII Software AG Covarity Hyperion Fujitsu XWand Fujitsu Oracle XBI Software IBMatrix SAP UBMatrix Converter Rivet Software XBRL Solutions UBMatrix Tool Kit SavaNet DynAccSys Xabra Caseware Semansys Composer Hitachi CBRP Hitachi Ximba Allocation Solutions Navision Creative Solutions Hitachi XiRute Edgar-Online IMetrix

  11. Agenda • What is XBRL, and Why does XBRL matter • What is happening Internationally? • Investment markets • Governmental activity • Fundamentals for identifying an XBRL project • Implementing an XBRL project/environment • Regulator • Internal reporting • NGO / Funding Agency

  12. XBRL Jurisdictions DK NO SE FI BE NL RU IASB CA FR IE IT US CN JP UK IN CH DE KR SP HK PT CO AU BR SG AR SA NZ

  13. Established Jurisdiction Representatives At Large Representatives AU Paul Phenix CA BillSwirsky DE Norbert Flickinger Vincent Bert MakotoKoizumi Executive Director CurrentlyVacant IASB Kurt Ramin JP Eiichi Watanabe NL Jan Pasmooij Walter Hamscher Michael Ohata John Turner NZ Mark Hucklesby UK Chris Rodgers US Daniel Roberts Olivier Servais MikeWillis CurrentlyVacant IR Conor O’Kelly SP Federico Florez Korea Key Provisional Jurisdictions ISC Seat No Seat on ISC UAE Belgium Denmark Sweden XBRL International Governance Board of AdvisorsThomas Krantz (5 to 19 members)Being Established Executive Committee*(7 members) International Steering Committee Chair: Kurt Ramin appoints elects ISC chair after term expires member of Immediate Past ISC Chair Vacant 2nd Vice Chair Walter Hamscher At Large EC Representation from ISC ISC Representatives France

  14. XBRL in Europe Jurisdictions • Established Ireland Germany Spain The Netherlands United Kingdom • Provisional Sweden Belgium Denmark France • In construction Czech Republic Finland Hungary Poland Portugal • In project Slovenia, Austria, Italy, Greece, Estonia, Switzerland, Norway, Malta + Turkey Luxembourg

  15. Tax Authorities NO CA UK DE NL IE IRS JP CN Tax XML Technical Committee recommends use of XBRL (Oasis-OECD) 29 Tax authorities AU NZ Pilot Committed

  16. Financial Banking Regulators EU CEBS SE UK DK BE DE FR NL Portugal LuX ES US CN JP KR SG AU ZA NZ Pilot Committed

  17. Exchanges & Equity Regulators OBX CSE LSE TSX Deutsche Börse KOSDAQ EuroNext Tokyo SEC Shanghai Lux Korea SWX Shenzen Taipei Singapore Sao Paulo Johannesburg ASX NZSE Live Eval Pilot

  18. Agenda • What is XBRL, and Why does XBRL matter • What is happening Internationally? • Investment markets • Governmental activity • Fundamentals for identifying an XBRL project • Implementing an XBRL project/environment • Regulator • Internal reporting • NGO / Funding Agency

  19. Project Disciplines Project disciplines: • What do you want to accomplish • Who are the major stakeholders • Who is / are the champions at very senior levels • Professional disciplined project management is critical • XBRL is not a quick / easy fix Start with a couple of data streams – reports that are provided or required. Look for common information that is used or provided to multiple users. Look at processes that repeated.

  20. Agenda • What is XBRL, and Why does XBRL matter • What is happening Internationally? • Investment markets • Governmental activity • Fundamentals for identifying an XBRL project • Implementing an XBRL project/environment • Regulator • Internal reporting • NGO / Funding Agency

  21. Project Disciplines What do you want to accomplish • Stop duplication of reporting (Look for common information that is used or provided to multiple users) • Received data sooner • Publish data earlier • Improved data quality • All validity edits are met • Staff work per bank decreased • Financial Analysts finish assignments faster

  22. Project Disciplines Who are the major stakeholders • FDIC/FFIEC/OCC • CEBS (COREP) Who is / are the champions at very senior levels

  23. Project Disciplines Professional disciplined project management is critical XBRL is not a quick / easy fix • FDIC took 3+ years • COREP underway for 2 years • SEC expressed interest in September 2004

  24. Agenda • What is XBRL, and Why does XBRL matter • What is happening Internationally? • Investment markets • Governmental activity • Fundamentals for identifying an XBRL project • Implementing an XBRL project/environment • Regulator • Internal reporting • NGO / Funding Agency

  25. The world is getting smaller IFRSs Around the World • 92 countries have approved IFRS • Russia, Australia, EU are in • Coming soon - Canada, Chile, China, … - India, Latin America, … • Converging with USA and Japan RED = IFRS Approved ORANGE = Stated move to adoption YELLOW = Adapting to IFRSs

  26. FDIC / FFIEC / OCC • Three banking agencies developed the Central Data Repository (CDR) • Using XBRL to define and transport data • Receives, validates, stores • Distributes financial information • CDR launched on October 1, 2005 • Receive data sooner • Publish data one day after receipt • Improved data quality • Improved data validity • Staff work per bank decreased

  27. The CDR (Central Data Repository) Project XBRL at FDIC

  28. FDIC / FFIEC / OCC • Three banking agencies developed the Central Data Repository (CDR) • Using XBRL to define and transport data • Receives, validates, stores • Distributes financial information • CDR launched on October 1, 2005 • Receive data sooner • Publish data one day after receipt • Improved data quality • Improved data validity • Staff work per bank decreased

  29. FDIC / FFIEC / OCC How Does FDIC Measure Success? • Improved data quality • Legacy: 66% clean coming in • CDR: 95% of data ‘clean’, some accepted with explanations - banks include written explanations with submitted to explain data nuances • Result: Expectations of data are documented, required, and met • All validity edits are met • Legacy: 70% • CDR: 100% • Result: All data adds up accurately

  30. FDIC / FFIEC / OCC

  31. Other Public Sector (US) • August 2005: Established the Public Sector Adoption Working Group – Leanne Travers (Chair) • XBRL-US Public Sector Pilot Project Objectives: • To identify public sector XBRL pilot projects • To establish pilots throughout federal, state, local public sectors • To establish pilots that reflect diverse use case examples of XBRL • To establish pilots that are replicable across public sector spectrum • To conduct an open, transparent pilot process

  32. Other Public Sector (US) • May 2006: 5 Pilots in planning or underway (some pre-date August 2005), others in planning • U. S. Department of Treasury Pilot Project • US Department of Interior, National Park Service Pilot Project • US Department of Commerce, US Census Bureau Pilot Project • Additional FDIC Projects (post-CDR project) • Department of Housing and Urban Development, Office of Housing/Federal Housing Administration Pilot Project

  33. CEBS & COREP • Building an XBRL Solvency Ratio taxonomy • Sponsored by the Committee of European Banking Supervisors • COREP:defining a COmmon REPorting framework around the solvency ratio (Based on Basel II, Pillar I) for credit institutions and investment firms under the European Union Capital Requirements.

  34. CEBS & COREP

  35. CEBS & COREP

  36. Dutch National Taxonomy Project • The Ministry of Justice and the Ministry of Finance in a joint effort intend to reduce the administrative burden of businesses by using XBRL to make the composing of reports and exchange of financial data easier. • Focuses on three important reporting chains: • Reporting of taxes; for instance profits tax, wage taxes, value added taxes (VAT) and Income taxes • Reporting of annual accounts • Reporting of economic statistics • Projected Savings to Dutch Business: 350 million euro

  37. Agenda • Let’s Imagine:

  38. Agenda World Bank USAID Aid project AusAID ..other donors • Custom reports are: • Expensive • Time consuming • Repetitive • Distracting from the real mission • Custom reports are: • “easy to consume”

  39. Agenda World Bank USAID Aid project AusAID ..other donors • XBRL is: • Easy to “tag” • Cheap to produce • Keeps the focus on the real mission • XBRL is: • “Heavier initial investment”

  40. XBRL is here, who knows where it will go XBRLis to the printed annual report, what the internet is to the printedYellow Pages.

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