xbrl application in china: listed companies information disclosure using xbrl ma donghao assistant...
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XBRL Application in China: Listed Companies Information Disclosure
Using XBRLMA Donghao
Assistant Chief Executive OfficerShenzhen Stock Exchange
Agenda
Market at a Glance
Information Disclosure: current practice
The Problems
Project Summary
Objectives
Taxonomies Framework
Implementation approaches
The Benefits
Future development
Market at a glanceTwo national stock exchanges in China:
Shenzhen and Shanghai.
Listed securities: 543@Shenzhen, 828+@Shanghai
Cash market only, products: common stock , treasury bills, bond and funds.
Market Regulator: CSRC.
Mandatory information disclosures
Prospectus
Offering circular
Periodic reports Annual Report, Half-year Report and Quarterly Report
Timely reports Notice on material issues, Notice on M&A, Notice on clarification, etc.
Medias of disclosure: 4 appointed newspapers and 2 appointed websites
Disclosure process
Company Web Site
Adobe Acrobat 5.0.lnk
SSE Web Site
Company Web Site
PeriodicReportingSoftware
CompanyShenzen Stock
Exchange
Internet
Adobe Acrobat 5.0.lnk
CompanyWeb Site
DataIBM Compatible
Disclosure process: periodic reports
Filing Shenzhen:
E-Filing software->structured data Report in PDF (prepared manually)
Shanghai: Report only in PDF (prepared manually)
Registration: computer-assisted
Announcement Newspaper: paper-based document exchange Website: Summary in HTML, full-text in PDF
Disclosure process: timely reports
Filing Fax to Company Management Department of the
Exchange
Approval Paper-based, feedback by fax Check for: conformity to CSRC/ Exchange rules,
procedural correctness, consistency.
Announcement: paper-based exchange of report Newspaper Websites
Disclosure reporting supply chain
Listed companies
CSRC
The Exchanges
Appointed papers, websites
Information vendors
Software vendors
Investors
The Problems
Low data quality
Inconsistency
High market cost
Project Summary
Initiated by the CSRC, with active support from both exchanges.
Using XBRL for information disclosure, with periodic report as a start.
Developed as a national standard, currently released for public comment, scheduled to be released officially at the end of 2003
Pilot deployment early 2004 for quarterly report
Objectives
An extensible standard framework
An open standard
Better disclosure data quality
Information disclosure taxonomy features
Based on XBRL 2.0 Specifications.
Built for current CSRC disclosure requirements, but with provision for future development
Developed our own PFS
Not yet extend from Core IAS Taxonomy
Taxonomy features: continued
Periodic report first
Form-based approach
Item names in Chinese
FrameworkGlobal Common
Document(int-gcd)
CID Core(cn-csrc-core)
CN-PFS（cn-csrc-pfs)
Non-FinancialData
（cn-csrc-nf)
Global Concept（cn-csrc-gc)
Global Terms（cn-csrc-gt)
Others（cn-csrc-other)
import
Prospectus
（cn-csrc-ni)Periodic
（cn-csrc-pr)Timely Report（cn-csrc-tr)
Other Report（cn-csrc-etc)
extendsextends
Implementation approaches
Minimal impact to current infrastructure
Implement XBRL for periodic/timely reporting filing Upgrade companies filing software Publish XBRL instance document
Integrate back end accounting systems and/or regulatory packages with XBRL
Disclosure process using XBRL
Company Web Site
Adobe Acrobat 5.0.lnk
SSE Web Site
Company Web Site
XBRLAuthoring
Application
CompanyShenzen Stock
Exchange
Internet
Adobe Acrobat 5.0.lnk
CompanyWeb Site
DataXBRL file
XBRLTaxonomy
XBRL file
XBRL Instance.lnkXBRL Instance.lnk
The Benefits
Market transparency
Better quality vs. lower price
Flexibility to changes in disclosure rules
The Benefits
The Exchanges
Information vendors
All stakeholders
Listed companies
Open issues
XBRL applicability with non-financial report
Inadequate domain experts involvement
Lack of experienced XBRL experts
No public forum
