International Financial Reporting Standards
IFRS and XBRL
Educational session
European Commission – DG Market and Services
31 May 2010
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Agenda
• What is XBRL
• Some examples of adoption
• XBRL @ IASCF and IASB
• IFRS Taxonomy adoption
• The US SEC case
• And in Europe?
• Demo
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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International Accounting Standards Committee Foundation
What is XBRL?
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
in a nutshell
4
 Universal XML-based royalty-free standard to improve publishing,
exchange, analysis & comparison of financial data and business
information
 Dedicated to : regulators, companies, banks, insurance, software vendors,
analyst, auditors & accountants …
 Accounting Principles translated (tagged) in an electronic set of data
(taxonomy)
 Developed and coordinated by XBRL International, a not-for-profit
organization
 Public authorities: central banks, banking supervisors, securities regulators…
 Business NPO: accountants, banks, vendors, analysts…
 Commercial companies: firms, banks, software vendors, issuers,…
 Adopted and implemented worldwide
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
XBRL - Taxonomy Development Training
taxonomy
concept
Copyright © 2006-2008 Business Reporting – Advisory Group Sp. z o.o.
value
context
unit
report
Washington DC
2008/10/14-15
6
?
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
What is XBRL?
http://www.hp.jicpa.or.jp/english/xbrl/index.html?width=720&height=680
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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International Accounting Standards Committee Foundation
Some examples of adoption
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
Japan
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Companies filing in Belgium
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PDF
Accounting
XBRL
Instance
document
Upload
Validator
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XBRL
files
Database
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© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
XBRL @ IASCF and IASB
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
XBRL @ IASCF/IASB
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• Trustees’ decision in 2001
• Part of the adoption and implementation of IFRSs
– XBRL is the de facto standard for electronic reporting
– Part of IFRSs development (IASB goal to provide high quality standards (IAS 1 par 9)
– Organizing the Presentation of Financial Statements (i.e. True and Fair view - Framework 46)
– Codification of concepts (help in convergence)
– Improve access for users to financial information
– Could increase the users range (i.e. translation)
– Could ease IFRS conversion, understanding and implementation
• Quality-assurance, Maintenance and Coordination of the IFRS Taxonomy
The Mission of the XBRL team is to create and provide a framework for
the consistent adoption and implementation of IFRSs with a high quality
IASCF-developed IFRS Taxonomy in the same languages and at the
same time as the IFRSs
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
XBRL governance at the IASCF
•18 members + 3 appointed observers
• Monthly meetings
• Taxonomy review
Director of XBRL Activities
Project Manager, Technology
Project Manager, Accounting
Project Assistant
Executive Assistant
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© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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15 members + 5 appointed observers
• Quarterly meetings
• Strategic advice
What we provide
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• A licence-free IFRS Taxonomy consistent with the IFRSs and the IFRSs for SMEs
• Translations of the IFRS Taxonomy available for 2009 in Arabic, (Simplified) Chinese,
Dutch, French, German, Italian, Japanese, Korean and Spanish
• Support materials
– The IFRS Taxonomy Guide, for issuers and preparers, analysts, accountants,
regulators, software vendors and service providers
– The IFRS Taxonomy Modules Manager, an online tool which helps users to navigate
and customise the Taxonomy according to their requirements
– The IFRS Taxonomy Illustrated, presents a simplified view of the Taxonomy in an
easy to read, visual format, with non-technical language
– The xIFRS (IFRSs with XBRL), presents a view of the electronic IFRSs with
embedded XBRL available for both the IFRSs and the IFRS for SMEs
• Outreach activities to national jurisdictions, regulators and supervisors, issuers and
preparers, software vendors…
© 2010
2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Due Process for XBRL Activities
Stages
Input from:
• XBRL Advisory Council
• XBRL Quality Review Team
• XBRL International working groups
• Other taxonomy developers
• Regulators
• Software developers
• International groups:
- Preparers
- Financial institutions
- Analysts
- Users
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Due Process for XBRL Activities
Major Requirements
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Business requirements:
•
Time line - alignment between the IFRS Taxonomy development time line and the IASB delivery timetable (i.e. the
publication time line of the yearly Bound Volume of IFRSs).
•
Consistency - the IFRS taxonomy must reflect and be consistent with the IFRSs.
Functional requirements:
•
Interoperability - the IFRS taxonomy should ensure interoperability between different software systems.
•
Flexibility - the IFRS taxonomy should be usable throughout the financial reporting supply chain where IFRSs are
implemented (increasing market transparency, supporting better analysis, reducing reporting burden, enhancing
regulation & supervision) & geographic regions.
•
Extensibility - the IFRS Taxonomy (like the IFRSs) aims to ensure comparability of financial information (not just
uniformity). Users of the IFRS taxonomy can extend it for their specific needs.
•
Stability - the IFRS Taxonomy is intended for use by all participants of the financial reporting supply chain; the
technical and accounting design must ensure it is stable and sustainable; however alignment with the IFRSs will
entail necessary adjustments to the taxonomy from an accounting perspective.
Technical requirements:
•
Compliance - the IFRS taxonomy must be compliant with XII specifications.
•
New XBRL technologies - the impact of new technologies (specifications) developed by XII should be
considered.
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
IFRS Taxonomy 2010
Development and release timeline
XBRL Quality Review
Team (XQRT) review
4 Jan – 1 Feb 2010
Oct
Nov
19
Public review of ED
IFRS Taxonomy 2010
19 Feb – 22 Apr 2010
Dec
2009
Feb
Jan
2010
IFRS Taxonomy 2010
improvement and development
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
X
Q
R
T
re
vi
e
w
IU
Final release
IFRS Taxonomy 2010
30 April 2010
Mar
Public review
(60 days)
Apr
May
IU
International Accounting Standards Committee Foundation
IFRS Taxonomy adoption
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
IFRS Taxonomy adoption
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© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Chilean Securities and Insurance
Supervisor (SVS)
http://www.svs.cl/sitio/mercados/novedades_enviofecu.php
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© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
The US SEC case
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
Phase-in Schedule
28
What?
“Face Financial Statements”,
Who?
“Block Tagged” Footnotes &
Schedules:
Filer Group
“Detail Tagged”
Footnotes & Schedules:
Starting for quarters ended June 15 or later
Domestic/Foreign Large
Accelerated Filers Using US GAAP
• Public Float >$5 billion
• All other Large/Accelerated Filers
All other Filers in US GAAP
(including smaller reporting
companies)
All Issuers using IFRS as published
by the IASB
2009
2010
2010
2011
2011
2012
2011
2012
30 day grace period, from the filing date of the related report, for the initial
submission of interactive data exhibit
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Expected Benefits
29
• More financial information available to investors
• Less costly and more timely production of financial
information
• Increased accuracy
• Increased comparability and improved interpretation of
financial data
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Reporting and Cost Burden Estimates*
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Filers: 500 in year 1 – 1,000 in year 2 – 10,200 in year 3
Internal burden hours to tag ‘face’ financials:
• 125 hours for the first filing
• 17 hours for each subsequent filing
Footnotes:
• 7 hours to block tag each filing in the 1st year
• 70 hours to detail tag the first filing in the 2nd
year
• 35 hours to detail tag each subsequent filing.
Schedules:
• 1 hour to block tag each filing in the 1st year
• 7 hours to detail tag the first filing in the 2nd
year
• 3.5 hours to detail tag each subsequent filing
Out-of-pocket cost for software
and filing agent services:
• $6140 for each filing
Web site posting:
• 4 hours to post all interactive data
submissions made each year
“70 hours seems to fall within the range suggested by commenters and what is anticipated
by Commission staff”
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
* These
numbers are provided for information only. Further details are available in the SEC rule
The SEC rule 33-9002 and IFRS
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• According to the rule 33-9002 “Interactive Data to Improve Financial
Reporting” enforcing the use of Interactive Data (ie XBRL) public companies
and foreign private issuers that prepare their financial statements in
accordance with U.S. generally accepted accounting principles (U.S. GAAP),
and foreign private issuers that prepare their financial statements using
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
• FPIs ‘using IFRS as issued by the IASB will be required to tag their financial
information using the most recent list of tags for international financial
reporting, as released by the IASCF and specified in the EDGAR Filer
Manual’
• The IASCF has developed the IFRS list of tags. To create interactive data
using the IFRS list of tags, an issuer generally will need to follow the same
mapping, extension and tagging process as will a company that uses the
list of tags for U.S. financial statement reporting.
© 2010
2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Call for Interest to FPIs
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What are the objectives of the initiative?
•
Support preparers using the IFRS Taxonomy in meeting the 15 June 2011 date by
– Assisting companies with preparing IFRS sample filings to the US SEC (reducing time and cost).
– Sharing and learning from other participants’ filing experiences.
•
Engage with preparers using the IFRS Taxonomy and obtain feedback.
Who is co-ordinating the initiative?
•
The IASC Foundation. The sample data will be provided to the US SEC (unless participants request
otherwise), but there is no direct involvement by the US SEC in the initiative.
What is the scope of the initiative?
•
US SEC filings for foreign private issuers (Form 20-F) in IFRS, prepared using the IFRS Taxonomy 2010.
•
Level 1 tagging (http://www.sec.gov/rules/final/2009/33-9002.pdf p. 59):
– Detailed tagging of information on the face of the financial statement (PFS).
– Single text blocks for notes.
What is the time line of the initiative?
•
Sample filings are expected by the end of June 2010.
•
Completion of the initiative by the end of August 2010.
© 2010
2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
IFRS Taxonomy Extensions
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
IFRS Taxonomy Extensions
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Taxonomy Extensions are defined as “additional information necessary to fulfill the
requirement of IFRS principles, but not specified listed in IFRS, in order to provide more
details based on specific industry, local/regional, supervision, preparer or user
requirements”
Observations
–
–
Hard to use IFRS taxonomy without extensions
No industry specific standards recognized as Generally Accepted
–
Trade-off between Extensibility and Comparability
Potential approach for IASB/IASC Foundation
–
Collecting illustrative financial statements and identify ‘common practice concepts’
–
Aggregating existing concepts/extensions and making them available on the IASCF
website (clearing house)
–
Assist the inception of a new body (EEEP) for a collaborative development of
Extensions
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
And in Europe
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
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“XBRL has been endorsed by the European Commission Higher Level
Group (HLG) and the European Parliament Committee on Economic &
Monetary Policy (ECON) as a potential technology enabler for the
achievement of the €150 bn savings sought by the program (increasing
European GDP by 1.4%)”, said Gunter Verheugen is Vice-President of the
European Commission in President Barossa Cabinet.
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
XBRL driving forces
EU Council
MS
EP
G20
Simplification
Stoiberg
XBRL
COM
Crisis
De
Larosiere
Projects in Europe
38
• Business area
–
–
–
–
–
–
Banking Sector (Corep & Finrep): 11 projects (6 established, 5 in progress)
Business register: 13 projects (5 established, 8 in progress)
Tax Returns: 5 projects (all in progress)
Statistics: 6 projects identified
Securities regulation: 3 (1 established, 2 in progress)
Others: 9 projects (public sector, GRI…)
• Reporting scheme
– Accounting practices : local GAAP, IFRS
– Prudential framework : CRD/Basel II
– Other : CSR, KPI
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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CESR
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ECCBSO
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And many more
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42
XBRL Europe
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XBRL Europe was created to follow-up the XBRL initiative in Europe; current focus:
•
To foster the emergence of common XBRL projects between members in Europe and between European
countries to harmonize practices / create common practices
•
To develop liaison and dialogue with European level organisations and European authorities (European
Commission, European Parliament, European Central Bank, etc) to increase XBRL awareness
•
To support the creation of new European XBRL jurisdictions within European countries
Members:
•
14 jurisdictional members (XBRL Belgium, XBRL Denmark, XBRL France, XBRL Germany, XBRL
Ireland, XBRL Italy, XBRL Luxembourg, XBRL Netherlands, XBRL Spain and XBRL International)
•
4 direct members (The Global Trust Council, the European Federation of Financial Analyst Societies,
Deloitte Consulting BV and SWIFT)
Working groups
•
WG1: European Business Registers
•
WG2: IFRS extensions for stock listed companies
•
WG3: COREP-FINREP Harmonization
•
WG4 : Users/analysts
Website : www.xbrl.eu
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Challenges and opportunities
• 27 member states, 23 languages…
• Reporting requirements:
–
–
–
–
–
–
Securities regulation (IFRS)
Banking supervision (IFRS, Basel II)
Tax computation (GAAPs)
Business register
Statistics
Others (SBR, CSR, ESG…)
• Sectors
–
–
–
–
–
Public authorities
Listed companies
Banks
Registered entities
NPOs…
• IFRS Taxonomy available in various languages but … could require extensions
• Running projects have confirmed the expected benefits
• Benefits far outweigh the cost
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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International Accounting Standards Committee Foundation
Conclusion
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
2008 IASC Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.iasb.org
2009
The Cost issue
46
• XBRL is licence-free, so are taxonomies
• Costs for regulators
– Visible: systems, software, taxonomy creation, training, education…
– Less visible: transition and change management, market perception,
harmonization
• Costs for companies
– Visible: software, taxonomy mapping, training…
– Less visible: perception
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Why should you pay attention?
47
• Created for, and by, accountants
• IFRSs are adopted (permitted or required) in over 120 countries.
XBRL is part of this implementation
• Shift from voluntary to mandatory filing
• More global initiatives are emerging
• Software solutions and implementing services are available and
affordable
• The IFRS Taxonomy is freely available in different languages and is
the cornerstone for widespread use
"We are close to the time when we shall no longer talk about XBRL
… because XBRL is broadly implemented."
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Links
IASB
•
XBRL activities http://www.iasb.org/XBRL/XBRL.htm
•
IFRS Taxonomy Illustrated and xIFRS http://eifrs.iasb.org/eifrs/Menu
•
Annual report http://www.iasb.org/XBRL/Resources/Annual+report.htm
National Bank of Belgium http://www.nbb.be/pub/03_00_00_00_00/03_01_01_00_00.htm?l=en
ACRA http://www.acra.gov.sg/ and https://www.openanalyticsintl.com/
Mastercard SEC filings
•
HTML form (example Mastercard 10-Q - http://www.sec.gov/Archives/edgar/data/1141391/000119312509159733/d10q.htm)
•
Interactive Data aka XBRL files (second table for Mastercard
http://www.sec.gov/Archives/edgar/data/1141391/000119312509159733/0001193125-09-159733-index.htm)
•
Visualised XBRL filing for Mastercard http://www.sec.gov/cgibin/viewer?action=view&cik=1141391&accession_number=0001193125-09-159733
•
https://xbrlviewer.bowne.com/
•
http://investorrelations.mastercardintl.com/phoenix.zhtml?c=148835&p=irol-sec
Compare
•
Filings http://xbrl.squarespace.com/storage/secdemos/CompareFilings.htm
•
Taxonomies http://www.xbrlsite.com/Demos/CompareExtensionConcepts/CompareExtensionConcepts_Run.aspx
•
Quality of instances http://edgardashboard.xbrlcloud.com/edgar-index.html
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Contact us
 xbrl@iasb.org
+44 (0)207 246 6410
www.iasb.org/xbrl
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