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XBRL Deployment for Corporates

XBRL Deployment for Corporates. Paul Snijders CEO Semansys Technologies Board member XBRL Nederland Founding member XBRL in Europe. Implementation strategy Threats and Opportunities. key to successful adoption. What we will cover. What does XBRL mean for you How to implement

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XBRL Deployment for Corporates

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  1. XBRL

  2. XBRL Deployment for Corporates Paul Snijders CEO Semansys Technologies Board member XBRL Nederland Founding member XBRL in Europe XBRL

  3. Implementation strategy • Threats and Opportunities key to successful adoption What we will cover • What does XBRL mean for you • How to implement • Implementation strategy • Threats and Opportunities XBRL

  4. XBRL is a regulator’s thing • Who is implementing XBRL • Banking supervisors & banks • Securities regulators & stock exchanges • Statistical agencies • Balance sheet offices & central banks • Tax authorities • Reporting issues, locally and trans-nationally • Local GAAP and/or IFRS • Basel II (COREP) • Statistics • External Reporting: FR taxonomies • Benefits: • Time & money savings • Improving transparency • Reliable & comparable data Are the benefits only for the regulators? XBRL

  5. Call for change in the fin. world “Above all, continue with your enthusiastic contributions to the global development of the XBRL standard. As I said at our last XBRL Conference in Tokyo: Have no doubt, you are changing the world for the better” Chairman Christopher Cox, U.S. Securities and Exchange Commission San Jose, California, Jan. 18, 2006 XBRL

  6. Accountingrules Regulator Taxonomy creation Companies Validation Mapping (COA) Taxonomy Reporting Validation XBRLReport Validation Compliance checking Analysis How do you report in XBRL • Regulator presents the taxonomy • You map it to your applications (COA) • Validate the results • Send to the regulator • Ready But is that really all??? XBRL

  7. Insurance Pensions SEC’s in EU Bank regulators ECCB Balance sheet office Stock Exchanges Accounting standards Federation of banks XBRL will be . . . . . everywhere • Established • Ireland • Germany • Spain • The Netherlands • United Kingdom • Provisional • Sweden • Belgium • Denmark • France • In development • Czech Republic • Finland • Hungary • Italy • Poland • Portugal • Starting • Slovenia, Austria, • Greece, Estonia, • Norway, Luxemburg, • Malta + Turkey XBRL

  8. Global projects • KOSDAQ – Korea • National Tax Agency of Japan • New Zealand Exchange • Patent and Registration Office (PRV – Sweden) • U.S. Securities & Exchange Commission • Shanghai Stock Exchange 800+ companies • Shenzhen Exchange • Tokyo Stock Exchange • UK Companies House • UK Inland Revenue Bank of Japan • US Federal Financial Institutions Examination Council (includes FDIC) • Australian Tax Office • Banco de España • Bundesbank • Committee of European Banking Supervisors (CEBS) • Chinese Securities Regulation Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges} • Danish Commerce & Companies Agency • Dutch Tax Authority • Dutch Water Authority • Eurostat • EU Commission – XBRL in Europe • Financial Service Agency of Japan • The Irish Revenue • Spanish Stock Exchange XBRL

  9. International US-GAAP COREP IFRS Specific Industry Stock exchange Sectors Taxonomy Taxonomy Taxonomy National Local GAAP Tax Admin Statistics A multitude of taxonomies Taxonomy Taxonomy Taxonomy Taxonomy Taxonomy Taxonomy Taxonomy Taxonomy Taxonomy XBRL

  10. To be expected ……………. • Companies will be confronted with multiple taxonomies Filings (GAAP), Tax adm, Statistics, Industry, banks, Sector etc, etc, • Companies will push corporate taxonomies into the divisional organisational structure • In each country’s subsidiaries will need to implement national taxonomies • Companies need corporate control and management of ‘all’ XBRL realizations (section 404) • Companies will use XBRL for internal reporting XBRL

  11. Current reporting practice • 70 % of reporting in corps. is manual • A large German Bank processes 200.000statements a year • A US Bank can use only 15 data items for risk assessment • A Dutch bank can save 30-40M Euro by preventing retyping SME’s financial statements • Organizations have over 30 reporting duties (Water Boards NL have 99 !!) • Less than 10 % of spreadsheet has test procedures, 47% have significant errors • A UK insurance company has 3.600 process steps for once a year filing, 60 employees, 4 months A Japanese bank lost$ 349 Mover a typing error !! XBRL

  12. The case The Strategy The gains Cleaning up the Excel hell • Large companies may have hundreds of spreadsheets that are in a gray area for Compliance reporting Sarbanes Oxley (SOX 404) • The true cost of using spreadsheets likely is much higher than other approaches • Eliminate as many stand-alone spreadsheets as possible from processes is the one sure way to sustain efficient compliance • Although there are ways to compensate for spreadsheet control issues, the best approach is to eliminate them altogether from processes that affect external reports. • In the long run, processes that run on inherently more controllable IT systems instead of stand-alone spreadsheets can save your company considerable time and money in the audit process as well as in executing day-to-day business XBRL

  13. Compliance Control Efficiency Reporting requirements Management& Control Streamline Reporting Processes • Comply to international and local taxonomies • Regulatory compliance rules • Real time, interactive data • Single point of control • Coordinated control and compliance rules • Change management • Object driven, versioning and audit • Individualized • Automated processed • Reduced development efforts • Straight through reporting • Integration with legacy systems Call for managed solution XBRL

  14. Corporate implementation • Reporting components to consider • Public taxonomies (corporate, local) • Company requirements • Dimensions (granularity) • Compliance rules • Legacy systems (charts of accounts) • Mapping • Centralize configuration & management • Individual XBRL instance templates • Automated processes XBRL

  15. Compliance Monitoring IFRS/GAAP AccountingRules Corporate Reporting Requirement External Requirement Internal Requirement Reporting Entities Management & Control Reporting Dimensions XBRL Reporting XBRL Deployment XBRL Deployment Manager Localized requirements Financial Applications Reporting Processes Validation Charts ofAccounts Data Source Mapping Server based architecture Authorization Security Version management Audit Trail Change management Comprehensive Solution XBRL

  16. ReportingProfiles Taxonomies Elements DimensionsEntities Configuration & profiling Reporting Requirements Taxonomies CompanyReportingElements ReportingEntities Dimension, Entity & element Groups Reporting Dimensions XBRL

  17. Configuration & profiling ReportingProfiles Compliance rules Audit and Control Taxonomies Elements DimensionsEntities Validation Checks Account maps Compliance rules Validation Data sources Data sources Charts of accounts XBRL

  18. ComplianceChecks Reporting Entity Validation Reporting Compliancerules Templates XBRLReport Taxonomy Accountmaps Mapping Export Individual reporting ReportingProfiles Taxonomies Elements DimensionsEntities Account maps Compliance rules Validation Data sources XBRL

  19. <- -> XBRL Deployment Manager Company ReportingElements IFRS/Local GAAPTaxonomy ComplianceRequirements Compliance rules Existence rules Content rules Taxonomy RequirementMapping CompanyReportingRequirements ComplianceManagement IFRS/GAAP Gap Analysis ReportingElement Set Instance Templates Taxonomy elements Entities Periods Units Scenarios Segments Reporting Profile Manager Local COA Mapping COA-data Gap Analysis XBRL Instance Manager Data sourceMapping DictionaryManagement Mapping file Accounts-Taxonomy Entities GL ERP Charts of Accounts Dimensions XBRL

  20. Ready for corporate use XBRL

  21. Audit & Control Compliance • Taxonomy based Compliance reporting • Enhance audits and controls System Integration Completeness Accuracy • Sarbanes Oxley • Section 302 • Reliability of • Internal financial reporting XDM a corporate solution XBRL

  22. I report, so …. I XBRL • Regulators will require XBRL based reporting • Corporates will have a multitude of taxonomies • XDM provides a ‘managed solution’ • The weather in Madrid is better than in Amsterdam XBRL

  23. “One way, perhaps, to distance ourselves from relying on these quarterly earnings forecasts, is to make progress toward real-time disclosure.” Michael G.Oxley , House Committee on Financial Services Washington, March 29, 2006 Be aware: more to expect XBRL

  24. paul.snijders@semansys.com XBRL

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