SBR IN FINLAND
SEMINAR ON STANDARD BUSINESS REPORTING (SBR)
NOVEMBER 24, 2015
OTTAWA, CANADA
Elina Koskentalo
Project Manager and Taxonomy Developer, XBRL
Finland
Adviser, Finnish Information Society
Development Centre (TIEKE)
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Start
the Finnish
Aboutof
Finland
Population: 5.5SBR
million
Area: 338,424 km2
Offical languages: Finnish, Swedish
Rebuplic, current president Sauli Niinistö
Independence from the Russian SFSR on
December 6th, 1917
• GDP: $41,068
• Registered companies: 300,000
The Journey
Start
theFinnish
Finnish
Start of
of the
Standard Business
Reporting
program
SBR
• Real-Time Economy, a public-private development program
started in 2007
– focus on improving purchase to pay and order to cash cycles
– e-invoicing and related value-added services at the core
• Aim to reduce administrative burden on SMEs
– government reporting identified as a pain point (payroll,
financial statement, VAT reporting)
• A Standard Business Reporting program initiated in 2009
– working together with business register, tax office and
statistics
– data elements (accounts) required by the three government
units  SBR code set
The Journey
Standard
Business
Reporting
Code
Standard Business Reporting Code Set
Set
• Listing all the reporting requirements set to the companies
– Joint effort of all report receiving entities involved
• Can be used as a chart of accounts
• Mapping to tax forms and other reports
• Interaction between business people and IT people made
possible
• In excel spreadsheet, inadequate for automated processing and
transfer of reports
>>The need for eXtensible Business Reporting Language
The Journey
XBRL Finland - Operations
XBRL Finland – operations
• Private-public collaboration with 20 members
• Private 12
• Public 8
• Working groups:
1. FAS taxonomy development
2. IFRS taxonomy development
3. Service providers
4. Mandatory filing WG
5. COREP/FINREP
6. Communication, education, research
7. Report receivers
8. Transactional reporting
XBRL
Finland
XBRL
Finland
- members
Public
Members
Private
Academics /
Associations
Ecosystem of Finnish SBR/XBRL
Company chart
of accounts
Standard Business Reporting
Code Set
Aineet, tarvikkeet ja tavarat
Ostot tilikauden aikana
Aine-, tarvike- ja tavaraostot
Financial
4000 Ostot
4001 Aineiden ja tarvikkeiden hankinta (pl. Energia,statements
pakkaus)
4002 Kauppatavaroiden hankinta
Tax returns
4003 Pakkausaineiden hankinta
4004 Sähkön hankinta omaan käyttöön
Statistics
4005 Lämmön hankinta omaan käyttöön
reporting
Tavaraostot
4100 Tavaraostot Ahvenanmaalta
4200 Yhteisöhankinnat
4201 Palveluiden osto yhteisöstä
Government
gateway
The Journey
The
Finnish
SBR Taxonomy
The Finnish
SBR taxonomy
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Applicability for different reporting scenarios in tandem and
separately
• Financial statements -, statistics - and tax reporting
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Making use of the Standard business reporting code set
(raportointikoodisto.fi)
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Applicability for different types of businesses
• Legal reporting requirements differ to some extent for
different types of businesses
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Complying with XBRL international recommendations and best
practices
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Usability
• Aiming to minimize the effects of versioning
Making use of the Formula linkbase and Inline XBRL
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Automated generation of
• Tax reports
• Later on: Cash flow statement, Key business figures
Enrich instance documents with aggregate level data
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”extended financial
statement”
Formula
processor
”general financial
statement”
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Standardized visualization of reports with Inline XBRL
• XSLT-templates shall be provided in order to transform the
XBRL-instance documents into iXBRL format
Tax reports
The Journey
Moving towards XBRL based financial reporting
Moving towards XBRL-based financial reporting
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Press release announced in January 2014 by Finnish Tax
administration and business registry:
• “XBRL based financial reporting will be made possible from
the beginning of 2016”
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At the first stage for limited and co-operative companies
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National government gateway for all XBRL filings
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Also for other legal forms in the following years (phased until
2020)
The Journey
What happens next – standardizing accounting
entries
General Ledger
(SBR code set)
Entries in XBRL
GL format
Encoding of
entries
Regulatory
filings
Auditing
• Finnish extension of XBRL GLtaxonomy
• Enables the automation of
accounting processes
• Interoperability between systems
• Streamlines XBRL-based reporting
(internal and external)
• Audit trail from financial
statements to accounting entries
• Enables automated auditing
• Ongoing public discussion:
”National accounting data archive”
Lessons
learned
Current challenges
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Maintainability
• …requires continuous deeper level collaboration across
ministries and various organizations
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Adoption
• …requires better support from software providers and open
mindness from the filers
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Support for filers
• …learning curve exists on both sides of the submission
platform
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Future mandate
• …100% adoption rate requires changes in the laws
Lessons
learned
Lessons learned
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Data contents before technology
• …is not to implement XBRL just for the sake of XBRL
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Keeping in mind the main goal
• …lowering the administrative burden for companies
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SBR is not just about standardizing the reported data
• …requires and integrated report submission architecture
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Public-private cooperation
• …the support of both is required
Questions?
Questions?
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Elina Koskentalo
• Project Manager and Taxonomy Developer, XBRL Finland
• Adviser, Tieke
• elina.koskentalo@tieke.fi
www.xbrl.fi
www.raportointikoodisto.fi
www.rte.fi