8th november 200512th xbrl international conference combining standards: an example of european...

8th November 2005 12th XBRL International Conference

Combining standards: an Combining standards: an example of European Central example of European Central Banks using XBRL and IFRS to Banks using XBRL and IFRS to

reduce the reporting burden on reduce the reporting burden on European corporations European corporations

An experience from the European Committee of An experience from the European Committee of Central Balance Sheet Data Offices (ECCBSO)Central Balance Sheet Data Offices (ECCBSO)

Manuel Ortega. Head of the Central Balance Sheet Data Office Division / III WG of the ECCBSO Chair / Strategy Committee of XBRL Spain Chair

Josef Macdonald. IASCF XBRL Practice Fellow / IFRS Taxonomy Working Group Chair / XBRL International Domain Working Group Chair

12th XBRL International Conference8th November 2005

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS

AGENDAAGENDA

Background III WG of ECCBSO Standard Formats ECCBSO/IASCF Joint XBRL Project



THE OPPORTUNITY TO COMBINE STANDARDSTHE OPPORTUNITY TO COMBINE STANDARDS

Corporations face the workload of external reporting

- Different demanders: - Tax authorities

- Mercantile registers

- Statistical units

- Commercial banks

- Shareholders

- University researches

- Local and central government

- Different levels of detail

- Different timing

- Different “computer languages”



THE OBLIGATION FOR COMBINING STANDARDSTHE OBLIGATION FOR COMBINING STANDARDS

Brussels European Summit, 20th-23th March, 2003:

Reduction of reporting burden on companies

Directive 2003/58/EC:

Elimination of paper before 2007

Corporation data, subject to this Directive, to be presented/demanded in public registers:

- Can be presented in electronic formats by companies

- Can be demanded in electronic formats by users



THE NEED TO COMBINE STANDARDSTHE NEED TO COMBINE STANDARDS

XBRL, only for large listed corporations?

NO: also necessary for SME’s, millions of corporations affected in Europe



EUROPEAN COMMITTEE OF CENTRAL BALANCE EUROPEAN COMMITTEE OF CENTRAL BALANCE SHEET DATA OFFICES (ECCBSO)SHEET DATA OFFICES (ECCBSO)

Informal group of CBSO‘s belonging to NIS and NCB

Experience using accounting data for several purposes:

Risk assessment

Economic analysis

Statistics

Common tool: corporation's annual accounts

Different goals, different questionnaires

5 working groups: Risk assessment, BACH database, ESD database, Study WG, IFRS impact and CBSO databases (III WG)



AGENDAAGENDA




III WG OF THE ECCBSOIII WG OF THE ECCBSO

Targets:

Monitor and report to the ECCBSO on IFRS implementation process, new projects and its impacts on CBSO

XBRL and CBSO

Creation of an IFRS-based format and its taxonomy extension



Good for users, CBSO among others, that: Profit from comparability

Need to reduce costs and make access to data easier

But also for companies, that: Want to know their obligations

Especially when an accounting change is coming

WHY XBRL TAXONOMIES?WHY XBRL TAXONOMIES?



III WG: CBSO of Austria III WG: CBSO of Austria

Targets:

In-house credit risk assessment, collateral within Eurosystem

Statistical analysis

Information available:

2,500 (individual and consolidated)

XBRL plans:

Foreseeable use for COREP



III WG: CBSO of Belgium III WG: CBSO of Belgium

Targets:

Legal mission: collect and process annual accounts of non-financial corporations


275,000: 100% coverage

XBRL works and plans:

Filling annual accounts in 2007, with XBRL: 300,000 corporations involved

Final version of Belgium taxonomy by end of 2005



III WG: CBSO of France III WG: CBSO of France

Targets:

Macro and microeconomic analysis

Banking supervision and individual diagnosis

Risk assessment and portfolio analysis


Several databases: CBSO (30,000), FIBEN (188,000), Consolidated database (3,500 groups)

XBRL plans:

Coordination with banking supervision for new reporting documents (Capital Requirements, others)



III WG: CBSO of Germany III WG: CBSO of Germany

Targets:

Risk assessment

Statistical information

Economic analysis


Several databases: individual (105,000), consolidated (25,000 groups). 75% coverage


Use of XBRL in data pool of Statistics Department

Membership in COREP (Supervision Department)



III WG: CBSO of Italy III WG: CBSO of Italy

Targets:

Collection and reprocessing of financial statements

Development of methods for corporate analysis


Several databases: individual (45,000), consolidated (800 groups). 47% coverage

XBRL plans:

Follow developments in Italy



III WG: CBSO of Portugal III WG: CBSO of Portugal

Targets:


Economic analysis


Several databases: annual (18,000 / 58% coverage) and quarterly (3,300 / 41% coverage)

XBRL plans:

Follow developments in Portugal



III WG: CBSO of Spain III WG: CBSO of Spain

Targets:


Economic analysis


Several databases: annual (8,500 / 35%), annual from mercantile registers (450,000 / 12%) and quarterly (1,000 / 15%)


Creation of taxonomy for CBSO

Other, at Banco de España:

currently receiving data with XBRL from Appraisal companies and commercial banks

COREP project / Anti laundering commission




AGENDAAGENDA



IFRS-based standard format: strategic planIFRS-based standard format: strategic plan

Use of IFRS-GP XBRL taxonomy

Monitoring with real examples (11 listed groups)

Creation of an extended version

Definition of “essential information”, and creation of a common and reduced format

Creation of a taxonomy: work in collaboration with IASCF-XBRL Team

Creation of instance documents from real cases (11)



Contents of the extended format Contents of the extended format (R): also in reduced format(R): also in reduced format

General characteristics (R)

Options IAS

Business combinations (R)

Consolidation (R)

Employment (not required by any IFRS) (R)

Balance sheet (R)

Income statement (by function or by nature) (R)

Statement of changes in equity (R)

Cash-flow statement (direct, indirect or indirect alternative) (R)

Notes



There is a note for each of the following items:There is a note for each of the following items:

Property, plant and equipment (R) Borrowings and payables

Investment property (R) Borrowings movements

Intangible assets (R) Income tax

Biological assets Defined benefit post-employment plans

Financial assets (R) Equity

Current assets Related parties

Provisions and grants (R) Segment reporting

Hedging instruments and risk Assets held for sale



ECCBSO Standard Format (B/S):ECCBSO Standard Format (B/S):

COUNTRY:

COMPANY:

IAS XBRLASSETS Paragraph Tag CBSO code Current Previous

I. NON-CURRENT ASSETS 1.51, 1.57 XBRL 0 0

A. Tangible assets 0 0

1. Property, plant and equipment 1.68.a XBRL 0 01.1. Land and buildings 16.37.b 0 0

1.1.1. Land 16.73,16.37.a XBRL1.1.2. Buildings 16.73 XBRL

1.2. Plant and equipment 16.73 XBRL1.3. Other elements 16.73 0 0

1.3.1. Motor vehicles 16.73,16.37.f XBRL1.3.2. Fixtures and fittings 16.73,16.37.g XBRL1.3.3. Leasehold improvements 16.73 XBRL1.3.4. Other property, plant and equipment (a) 16.73 XBRL

1.4. Construction in progress XBRL

2. Investment property 1.68.b XBRL 0 02.1. Land and buildings 40.76, 40.79 0 0

2.1.1. Land 40.76, 40.792.1.2. Buildings 40.76, 40.79

2.2. Other investment property (a) 40.76, 40.79

B. Intangible assets 0 0

Thousands €Year



ECCBSO Standard Format (I/C):ECCBSO Standard Format (I/C):

COUNTRY:

COMPANY:

INCOME STATEMENT BY NATURE IAS XBRLParagraph Tag CBSO code Current Previous

1. Operating revenue 1.81.a XBRL 0 0 1.1. Operating revenue 1.81.a XBRL 0 0

1.1.1. Turnover 0 01.1.1.1. Sale of goods 18.35.b.i XBRL1.1.1.2. Rendering of services 18.35.b.ii XBRL1.1.1.3. Revenue from construction contracts 11.39.a XBRL

1.1.2. Royalty income 18.35.b.iv XBRL1.1.3. Property rental income 40.75.f.i, CP XBRL1.1.4. Other miscellaneous operating revenue 1.91 XBRL

1.2. Other operating income 1.91, 1.92 XBRL 0 01.2.1. Interest income 18.35.b.iii XBRL1.2.2. Dividend income 18.35.b.v XBRL1.2.3. Income from government grants 20.39.b 0 0

1.2.3.1. Income from government grants related to income 20.311.2.3.2. Income from government grants related to assets 20.26

1.2.4. Remaining operating income 0 01.2.4.1. Foreign exchange gain from foreign currency borrowings related to interest costs 23.5.e XBRL1.2.4.2. Gain on redemption and extinguishment of debt CP XBRL1.2.4.3. Other operating income CP XBRL

Thousands €Year




AGENDAAGENDA



XBRL SHOWCASEXBRL SHOWCASE



THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

Manuel Ortega/Josef Macdonald

8th november 200512th xbrl international conference combining standards: an example of european...

Documents

reduction of reporting

european corporationsiii

european corporationsthe

study wg

accounting data

corporation data

data easierbut

ifrs impact