International Financial Reporting Standards
Foreign Private Issuers
filing to the US Securities
& Exchange Commission
in IFRS
Workshop – Thursday 3 June 2010
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Agenda
2
13:00 – 13:05:
Welcome
13:05 – 13:35:
IFRSs, XBRL and the IFRS FPI initiative
13:35 – 14:35:
Filing stage 1: identifying taxonomy items
14:35 – 15:05:
Filing stages 2, 3 & 4:
creating, validating & rendering filings
15:05 – 15:35:
Lessons learned from Year 1 filers
15:35 – 16:05:
Example filings
16:05 – 16:50:
Q&A
16:50 – 17:00:
Wrap-up
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
IFRSs, XBRL and the
IFRS FPI initiative
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 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
XBRL at the IASB / IASCF
5
“The mission of the IASC Foundation 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”
© 2010 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
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
© 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
7
• 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 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
The SEC rule 33-9002
8
• 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 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
The SEC time line
9
• All (…) foreign private issuers that prepare their financial statements in
accordance with IFRS as issued by the IASB will be subject to the same
interactive data reporting requirements beginning with a periodic report on
Form 10-Q, Form 20-F or Form 40-F containing financial statements for a
fiscal period ending on or after June 15, 2011.
• December 2010: Taxonomy approved for use by SEC filers reporting in IFRS
• September 2010: SEC staff recommends taxonomy to Commission
• July 2010: SEC staff determination that the taxonomy improvement work plan
will achieve the agreed objectives on time
Objectives and co-ordination
10
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.
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Scope and time line
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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 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Process, outcome and liability
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What is the process for the initiative?
• No mandated process from the IASCF (best practice stages only) with
focus on outcomes
What is the outcome of the initiative?
• Participants will be able to produce an XBRL filing (instance document +
extensions) that represents the reporting requirements in Form 20-F,
using real data and using concepts from the IFRS Taxonomy 2010.
Is there any liability to the SEC?
• No. This is an IASCF initiative which does not involve the SEC.
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Concepts and extensions – US GAAP
International Accounting Standards Committee Foundation
Filing stage 1:
identifying taxonomy items
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
15
?
Stage 1 – identify items
Disclosures have to be “tagged”
• Tag as the name of an XBRL item (similar to chart of accounts)
• Example item of inventories:
- < ? >30000</ ? >
 <Inventories>30000</Inventories>
How to find the right item of IFRS disclosures?
• There are different ways
- by reference (recommended)
- by taxonomy structure – extended link roles (ELRs)
- by label
- …
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Identification - by reference
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All reportable items of the IFRS Taxonomy have a reference link
• Reference link as documentation of IFRS disclosure requirements
• xIFRS (IFRS with XBRL) as visualisation of this link
Disclosure example: Carrying amount of property, plant and
equipment
• IFRS disclosure of IAS 1.54 (a) , IAS 16
• xIFRS of IAS 1.54 (a) and IAS 16 to find the item of property, plant
and equipment
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
xIFRS Access
Available via eIFRS: http://eifrs.org/
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Sample: xIFRS of IAS 1.54
Available via eIFRS: http://eifrs.org/
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Identification - by structure
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Default structure of the IFRS Taxonomy: ordered by Financial
Statements and Notes by Topics
• Structure represented by numbered ELRs
• Relationships represented by hierarchical structure
• Structure is visualised in the IFRS Taxonomy Illustrated
Disclosure example: Carrying amount of Property, Plant and
Equipment
• Line item in the statement of financial position
• Sub-element of non-current assets
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
IFRS Taxonomy Illustrated
HTML and free downloadable PDFs available:
http://www.iasb.org/XBRL/Resources/
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Identification - by label
All English labels for reportable items in the IFRS Taxonomy
are aligned with IFRS terminology
• Examples
- Revenue but not Turnover
- Profit (loss) but not Net income
• Most software tools provide search functionality by labels
Disclosure example: Carrying amount of deferred income
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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Missing item?
23
IFRS Taxonomy has limited number of common practice or
industry specific items
• If there is no corresponding taxonomy item for your disclosure, use
an extension
How can we help?
• Answering specific questions related to the content of the IFRS
Taxonomy
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
Filing stages 2, 3 & 4:
creating, validating
& rendering filings
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Stage 2 – create a filing
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What to do:
• Familiarise yourself with the EDGAR Filer Manual (EFM) rules
(http://www.sec.gov/info/edgar/edgarfm-vol2-v14.pdf) and FAQs
(http://www.sec.gov/spotlight/xbrl/staff-interps.shtml)
• Create an extension schema, extension label, presentation, calculation and
definition linkbases
• Re-use IFRS Taxonomy concepts wherever possible (create extension concepts
when an IFRS Taxonomy concept is unavailable)
• Create an instance document
How we can help:
• IFRS Taxonomy support materials (IFRS Taxonomy Guide)
• Answer specific questions related to the IFRS Taxonomy architecture and EFM
rules
• Provide a filing template and example filing
• Review the filing
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Data files
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• XBRL instance document: masd-20100331.xml (EX101.INS)
• XBRL taxonomy extension schema: masd-20100331.xsd
(EX-101.SCH)
• XBRL taxonomy extension calculation linkbase: masd20100331_cal.xml EX-101.CAL
• XBRL taxonomy extension definition linkbase: masd20100331_def.xml (EX-101.DEF)
• XBRL taxonomy extension label linkbase: masd20100331_lab.xml (EX-101.LAB)
• XBRL taxonomy extension presentation linkbase: masd20100331_pre.xml (EX-101.PRE)
Filing template
• Massive Dynamik GmbH illustrates:
- Data files structure, naming and relationships (imports and
references)
- ELRs, their IDs, URIs, definitions
- Required (sample) DEI facts
- Sample IFRS facts
- Sample extensions
- EFM valid (with the exception of transitional exceptions)
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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DEI information
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• Not required by IFRSs (required by the US SEC)
• Useful to provide full EFM validation results
• Only basic information required (see EFM)
• No need to provide presentation or definition linkbase
(although useful for understanding of DEI and therefore
recommended – see template data files)
Documentation labels
29
• Not required by EFM
• FPIs are encouraged to provide documentation labels
for extension concepts
• Example:
– SettlementDueFromCustomers – “Amounts due from
customers due to the difference in timing between the
payment transaction date and subsequent settlement.”
Stage 3 – filing validation
30
What to do:
• Validate your filing against EFM rules (some tools can perform validation)
• Be aware of transitional exceptions to the EFM for FPIs
How we can help:
• Provide validation for the filing
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
EDGAR Filer Manual (EFM)
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• Use segments for dimensional disclosures
• Transitional exceptions to the EFM for FPIs:
• 6.3.9 Filers must use the IFRS Taxonomy 2010 and the latest DEI
Taxonomy as specified on the SEC website as their standard
taxonomy.
• 6.4.1 – not applicable in the CfI
• 6.3.3, 6.3.6, 6.5.15, 6.5.25, 6.6.5, 6.6.7, 6.6.8, 6.6.9, 6.6.10, 6.6.11,
6.7.4, 6.7.22, 6.7.27, 6.7.28, 6.8.14, 6.8.18, 6.8.19, 6.8.22, 6.8.23,
6.11.5, 6.16.3
• for example: 6.7.27 The xsd:element name attribute must end with
‘Domain’ or ‘Member’ if and only if the type attribute equals
‘nonnum:domainItemType’ us-types:domainItemType.
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Stage 4 – filing rendering (optional)
What to do:
• Visualise your filing using a replicated EDGAR rendering engine
How we can help:
• Provide rendering for the filing
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
32
International Accounting Standards Committee Foundation
Lessons learned
from Year 1 filers
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
Example filings
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
International Accounting Standards Committee Foundation
Useful links
IASC Foundation
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASC Foundation or the IASB
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Useful links
44
IASC Foundation
•
http://www.iasb.org/News/XBRL/Call+for+US+FPIs+for+SEC+IFRS+filings.htm
•
http://www.iasb.org/XBRL/IFRS+Taxonomy/IFRS+Taxonomy+2010/IFRS+Taxonomy+2010.htm
US SEC
•
http://www.sec.gov/rules/final/2009/33-9002.pdf
•
http://xbrl.sec.gov/
Deloitte
•
http://www.deloitte.com/view/en_US/us/Services/audit-enterprise-risk-services/Financial-Statement-Internal-ControlAudit/Accounting-Standards-Communications/58a27a4417b55210VgnVCM200000bb42f00aRCRD.htm
Ernst & Young
•
http://www.ey.com/Global/assets.nsf/US_eyacctglink/ATG_XBRL_BB1710/$file/ATG_XBRL_BB1710.pdf
KPMG
•
http://www.us.kpmg.com/microsite/DefiningIssues/2010/di-10-21-implementation-guidance-xbrl-reporting.pdf
•
http://www.us.kpmg.com/microsite/DefiningIssues/2010/di-10-3-sec-form-10-K-xbrl-complexity-risks.pdf
•
http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/XBRL-fundamentals-and-SEC-new-rule.pdf
PricewaterhouseCoopers
•
http://www.cfodirect.pwc.com/CFODirectWeb/download?sourcetype=contentattachment&content=THUG85UPVL&filename=DataLine%202010-24.pdf
XBRL Cloud
•
http://edgardashboard.xbrlcloud.com/edgar-index.html
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
The Field Testing initiative
45
Objectives:
• Test the usability of the IFRS Taxonomy; identify a wide range of possible issues
• Conduct cost/benefit analysis
Participants:
• Preparers of IFRS financial statements, including Small and Medium-sized Entities
(SMEs)
• Diverse and balanced range of participants from different sectors and jurisdictions
Benefit for preparers:
• Privileged communication channel and support
Time line:
• Aligned with the IFRS Taxonomy development time line; expected to take place
over a year. The results may be shared with XII if the required improvements
are not within the scope of the IASC Foundation’s XBRL activities
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Questions?
Thank you for listening
Expressions of individual views by members
of the IASB / IASCF and its staff are
encouraged. The views expressed in this presentation
are those of the presenter.
Official positions of the IASB on accounting matters are determined only
after extensive due process and deliberation.
© 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
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