Taxonomy Recognition
Experiences to Date, Plans for the
Future
Yossef Newman, Chairman TRTF
April 20, 2010
• Recognition Process initiated during 2004
• Recognized taxonomies must meet certain standards of
validity, documentation and hosting
• Taxonomy Recognition Process (TRP) document created
to standardize submission and documentation
requirements
• Initially fell under the Domain Working Group
• US GAAP Taxonomy becomes first request for
“Approved” status
• Taxonomy Recognition Task Force (TRTF) established
• Initially under the XSB currently under the BPB
• The objective of the recognition process is to support
taxonomy development around the world by;
• Providing an efficient process for recognition and
dissemination
• Promoting standards of quality and good practice
• Providing an efficient means of informing members and
the public about the availability and status of XBRL
taxonomies
Prior to 2009
• 10 Acknowledged
•
1 Approved
During 2009
• 18 Acknowledged
•
6 Approved
Brazil GAAP
India C&I
IFRS 2008
Spain ICAL 90
IFRS 2009
CFCID China
US GAAP 2009
CLCID China
MIX - Microfinance
Taiwan GAAP
RSC
TCA
Chile
US GAAP RR 2008
EDINET
US GAAP SOI 2008
GRC
CFCID China
CLCID China
US GAAP 2009
US GAAP RR 2008
US GAAP SOI 2008
• “Acknowledged”
• Acknowledged Taxonomies are recognised by XBRL
International as being in compliance with the XBRL
Specification.
• Compliance is confirmed by testing a taxonomy in a
defined range of XBRL applications which may be
upgraded and changed from time to time.
• The Taxonomy Recognition process does not
specifically address other issues such as ease-of-use
or the completeness of accounting/reporting content.
• “Approved”
• A taxonomy which is given Approved status must
meet a number of quality criteria. It must:
• Comply with FRTA
• Have been used to create a number of instance
documents which confirm it adequately covers the
data it purports to represent.
• Have been through a period of open review
• Meet requirements for documentation of these items
• The recognition process does not specifically address
other issues such as ease-of-use or the completeness
of accounting/reporting content.
• Recognition of the taxonomies leads to the public listing
of the taxonomy on the XBRL web site
• Recognition is not designed to ensure that specific
elements within the taxonomy are appropriate or
complete for the reporting domain represented by the
taxonomy
• Recognition is limited to a technical examination of
compliance with the XBRL specification and appropriate
development practices, which do consider the presence
of domain expertise
• Increase in interest and submissions as XBRL adoption
accelerates
• Number of submitted taxonomies is increasing
• Market is looking for an independent means to assure the
quality of individual taxonomies and the processes used
to create them
• Initial discussions with key stakeholders within the XBRL
community show that there is demand for an enhanced
and refined Recognition Process
• Clarification - descriptions/titles of the existing levels of
recognition have led to some market confusion
• Streamlining process - feedback from stakeholder has
led to recommended changes in execution of the process
• Additional level of recognition – feedback from
stakeholders has led to consideration of a third, higher
level of recognition, to address taxonomies which have
achieved market maturity (proven processes, extensive
deployment experience etc.)
• Replaces existing “Acknowledged” level
• Lowest level of taxonomy recognition
• Satisfies a set of specific assertions detailed in the TRP
• Validates that:
• the taxonomy is valid XBRL
• A basic review of the supporting documentation is
conducted
• Replaces existing “Approved” process
• Higher standard than “Validated” level of recognition
• Purpose of the “Recognized” level is to encourage high
standards in taxonomy development, support the
dissemination of high quality taxonomies, and to minimize
redundancy of taxonomies developed for the same target
audience
• Taxonomy is validated, expanded requirements are
examined, a review of support documentation is
performed, and the taxonomy development processes
are examined
• Highest level of taxonomy recognition.
• Only awarded to previously “Recognized” taxonomies
• Differentiates taxonomies that are in large-scale use and
have achieved maturity in the marketplace
• “Established” level requires a demonstrated quality
processes supporting ongoing maintenance of the
taxonomy
• National standards body or government agency, can
identify taxonomies which meet ”Recognized” status
FRTA
• Enhancements to FRTA currently underway
• Separate manual from automated
• Establish profiles for different taxonomies
• Adoption/implementation providing better insight into how
taxonomies are described and measured
• e.g. Interoperable Taxonomy Architecture (ITA)
initiative has identified dozens of “measures” such as
approach to modularization, frequency of updates,
naming convention etc.
• Taxonomy Recognition is a key component supporting
the effective adoption of XBRL
• By provide a clearinghouse of existing taxonomies the
recognition process facilities the sharing of information
and approaches
• Recognition encourages consistency and quality in the
adoption of XBRL
• As the market around taxonomy development continues
to expand the importance of taxonomy recognition will
continue to increase