ENHANCING IFRS EXTERNAL REPORTING USING XBRL

Presented by:Denis DUPRIEZ & Stéphanie ROBERT-LEMARRE

Capgemini Group Information SystemsDeclan JONES

Fujitsu Software Corporation, Ireland

Session Overview

Why implement XBRL and Why now? Compliance and regulatory reporting pressures on companies Why is XBRL important for IFRS ?

What was the XBRL project undertaken? Proof of Concept project IFRS/XBRL Project Objectives and phases

How the project was implemented XBRL Implementation and tools Issues encountered

Conclusions and next steps

Clients of external reporting

Markets

Competitors

Regulators

Governments

Auditors

StakeholdersBanks

Customers

SuppliersInvestors

InformationExchange

Why XBRL ?

“It is exciting to be involved with a truly global web-based solution for capturing and transferring business reporting information, particularly at a time when financial reporting is subject to such a high degree of public scrutiny and change. I am particularly encouraged by the levels of comparability IFRS and XBRL offer.”

IASCF Commercial Director & Chair of XBRL International, Kurt Ramin

Why XBRL is important for IFRS

XBRL and IFRS objectives are mutually compatible in that: XBRL facilitates the transfer and exchange of financial

information XBRL makes comparability, transparency and

benchmarking far more achievable Using XBRL companies can make their IFRS reports in

a more timely fashion

A key tool : the IFRS-GP Taxonomy

XBRL tags for IFRS financial data Typically reported in annual, semi-annual or quarterly financial

disclosures Balance Sheet Income statement Statement of Cash Flows Statement of Changes in Equity Accounting Policies and Explanatory Disclosures

IASCF initiative with representatives from the “Big 4” accounting firms and XBRL tool vendors But IFRS taxonomy is not endorsed in any way by the IASB

IFRS Taxonomy presents key benefits

Major IFRS needs covered Automatic benchmark between IFRS companies Identify the relationships between IFRS elements

Specific “customization” for company needs “X” (Extensible) BRL taxonomy allows company

extension XBRL reinforces data consistency through validation

links for internal business rules, cross-checks…

The proof of concept project

Objectives of the Project

Experience Gain real world practical XBRL implementation experience Build the knowledge to exploit XBRL within the company

Assess Viability and future value Demonstrate viability of XBRL Investigate an approach for future implementation Investigate future uses and opportunities for XBRL

Be at the leading edge Be ready and able to publish XBRL data to stakeholders

Limited to: External reporting only

How this XBRL experience was achieved

XBRL Implementation Phases Phase 1 – Buy-in Phase 2 – Preparation & Tool Selection Phase 3 – Taxonomy extension

Mapping from CoA to XBRL Taxonomy Extension

Phase 4 – Create XBRL output

Buy-in Preparation Taxonomy Extension XBRL Outputs

Phase 1- Buy-in Key players

CFO and Board

Communication Department

Auditors

Others

Buy-in

Phase 2 - Preparation & Tool Selection Consolidation tools Taxonomy tools XBRL Report (Instance) tools End user analysis tools

Preparation

Phase 3- Taxonomy extension

The IFRS Taxonomy “Space”

Company Specific Extensions

Jurisdiction Specific Extensions

Industry Extensions

Bound Volume

Taxonomy Extension

Phase 3- Taxonomy extension

Different Approaches to publish in XBRL Standard: Use the “official” Taxonomy

Extended: Create a company customized referential and map it with official IFRS taxonomy

Specific: Build a new XBRL taxonomy for company accounts and reports to be published “from scratch”

Taxonomy Extension

Phase 3 – Taxonomy extension

Focus on “Extended” Approach

Selection of published consolidated data

Collection of consolidated data

Mapping with official IFRS-GP Taxonomy

Creation of the extended taxonomy using a taxonomy editor tool

Taxonomy Extension

Phase 4 : Create instance documentsXBRL Output

Instance document XBRL Output

Taxonomy view according to presentation linkbase

Period not appropriate to context

Instance creator; view of values according to contexts

FOCUS ON FUJITSU TOOLS Right tools for the right person

Different roles have differing requirements Fujitsu provide XBRL products (Interstage family) and

tools aimed at End Users in the “Taxonomy business” (Defining

and Modifying) End Users of XBRL reports (Reading and Writing) Software Developers System Integrators and Solution builders

Interstage XWand comes in Developer, Server and Personal editions

Roles and Tools for XBRL

Report Designer

e.g. Standards body

or report owner

Taxonomy Editor with full link base support

Define reporting “concepts” and key inter-relationship. Ensure report meets the needs of users and the business

ROLE ACTIVITY TOOL

Report Creator

(Human)Instance CreatorPeople enter facts based on the

previously defined report definition / design

Report Creator

(Computer)APIComputers generate facts that adhere

to previously defined report definition (taxonomy)

Report Usage

(Human)Instance ViewerPeople read / view report

Report Usage

(Computer)API (Java or C#)Computers process reports

Taxonomy Editor & Instance Creator Suitable for end users in the “Taxonomy

business” (Defining and Extending) Suitable for users to do “data entry” i.e. create

Report Instances and also for viewing reports. Intuitive GUI tool Drag and drop support WebDav support Import and Export from Excel/CSV

The Fujitsu taxonomy tool

Schema Elements

Element attributes

Linkbase views

Link information

Status/errors

Conclusions

Assessment of Project Objectives Experience

Project successful within limits set Knowledge and confidence to go further achieved.

Viability proven Full life cycle from tools selection, taxonomy extension, mapping

and report creation achieved. Efficiency of XBRL for IFRS disclosure

Map to XBRL once but exploit many times for different reports Allow automatic processing of financial data

Future value possibilities Ready and able to publish XBRL data to external parties. Data collection process from subsidiaries i.e. “internal financial

supply chain”

Summary XBRL and IFRS objectives are mutually compatible

During (or soon after) the IFRS project is a good time to implement XBRL

Use of XBRL leads to efficiencies of reporting throughout the organization

The tools available in the market are mature enough to allow you to start your projects today.

Thank you.