XBRL Formula in use:Improving the quality of data

Mark Montoya (FDIC)Víctor Morilla (Central Bank of Spain)

XBRL and the Bank of Spain• Involved in the XBRL community since 2002• Founding member of XBRL Spain• Working in the development of CEBS taxonomies• Working in the deployment of systems and local

taxonomies– New Basel’s Accord Solvency Information (COREP)– Reserved Statements of Financial Entities (FINREP)– Central Balance Sheet Data Office

Complexity of our filing process• Some functions of the Bank of Spain imply the

collection of data:– Promotion of the stability of the financial system– Preparation and publication of statistics– Gathering data for the European Central Bank

• Some numbers (credit institutions)– About 5.000 statements per year– About 35.000 different concepts managed– More than 300.000 checks applied per year– More than 35.500.000 data received per year– Data stored since 1985

Moving towards XBRL based solutions– 2003: Pilot project to receive information from appraisal

companies

– 2004: Project for leading and planning the deployment of

XBRL at the Bank of Spain2004: Infrastructure for

development and deployment of XBRL systems

– 2005: System for the submission of public statements

• Under development:– New Basel’s Accord Solvency Information– Central Balance Sheet Data Office questionnaires– Reserved Statements of Financial Entities

Why XBRL formula ?• Some requirements not covered by current spec

– Arithmetic comparisons– Conditional expressions– Operations between different contexts– Aggregation of dimension members– Checking for the presence of concepts if some rules apply– Mandatory comments

• XBRL Formula features– A formal language– To express business rules– Standard– Allowing validation at the origin– Benefits from other institutions’ experience

Sender

Receiver

Developing business rules (classic reporting system)

IT developerSystemrequirements

Businessrules

IT developer

Businessuser

Businessuser

IT analystSystem

requirements

C

Code

C

CodeIT analyst

Sender

Receiver

Developing business rules(using XBRL Formula)

Businessuser

IT analyst

Businessrules

XBRLTaxonomy

Businessuser

Sender

Receiver

Data filing process timeline (classic reporting system)

Data extraction& transformation

Errors detected

Analysisand corrections

Data extraction& transformation

Validation OK

Analysis

Notification

Sender

Receiver

Data filing process timeline (using XBRL Formula)

Data extraction& local validation

AnalysisAnd corrections

Analysis

Validation OK

Conclusions• XBRL Formula will help regulators:

– Improving the quality of data– Increasing the efficiency of the reporting

process– Reducing time and costs to develop new

reporting solutions

Thanks for your attention

Time for questions