Todays Agenda Proposals for a widespread adoption of XBRL by the Canadian Government using SBR Status of the IFRS Taxonomy with the SEC Adoptions by Canadian companies and organizations Implications of the extensive worldwide adoption for Canada
Proposals for SBR
Standardized Business Reporting (SBR) Across the board adoption of XBRL in a government or across numerous departments and agencies.
Numerous countries around the world have adopted SBR in whole or in part. For example, The Netherlands, Denmark, New Zealand, Australia, Japan, Singapore, Ireland, Poland, the United Kingdom, India, Belgium, Estonia, Luxembourg and Italy.
Government agencies included in the Australian SBR program: Treasury (as the lead),the Australian Prudential Regulation Authority The Australian Securities & Investments Commission The Australian Taxation Office The State and Territory government revenue offices, and The Australian Bureau of Statistics.
pros and cons of existing Canadian environment Opportunity to create a strategic vision for e- government Insufficient data quality and analytics Lack of comparability of Canadian to international financial data Administrative burden on business filers Costly individual "sea of redundant data" in different institutions
4 pillars for successful XBRL implementation LEGAL Analysis of legal state- of-the-art reporting obligations Proposal of legal changes Analysis of legal impact Continuous revision of results Users and adopters feedback ORGANIZATIONAL Analysis of the structure of the reporting organisations Requirements for organisational structure Roles and responsibilities Involvement of Canadian institutions and organisations Communication DATA Analysis of the scope of data reported by / to various entities Proposal of data sets and redundancy elimination Proposal of taxonomies Continous data update Update and maintenance of taxonomies TECHNOLOGICAL Analysis of reporting technical solutions Proposal of technical solutions Analysis of technological impact Technical solutions introduction Technical monitoring and changes control
XBRL Implementation Process Define and tag all data items and forms subject to filing Define all data owners and receivers Define all information filing frequencies Identification Identify and remove redundant information items Identify specific taxonomies Draft supporting legislation Approximation Create individual taxonomies Publish and utilize taxonomies Conduct public market awarenes s programme Publication
Affected entities by sector Banking BanksCredit Unions Business Regulated Companies with special reporting obligations Companies listed on the Stock Exchanges Taxpayers Capital markets Stock Exchanges Securities Commissions Securities brokerage companies Investment funds management companies Financial services Money transfer service providers Currency exchange offices Audit firmsLeasing companies Pension funds management companies Insurance Insurance companiesInsurance brokersOSFIInsurance agents Public sector Municipalities Government Owned Entities Public companiesCRA Federal and Provincial Governments Not-for-Profits Political partiesFoundationsCivil Associations Religious groups and associations Foreign associationsForeign NFP's Charitable organizations and associations
Organizational Concept for SBR Implementation Standard Business Reporting Roles Management Create and update legal framework Coordinate project activities Implementation Establish and maintain technical framework Meta data definition Development Development of taxonomies Define and promote standards and legislation
Where Information Will be filed various business and financial regulatory data Information filers processing: label, presentation, reference, formula, context, calculation Departments and Agencies collecting Data
How the XBRL information will be disseminated XBRL metadata repository CRM: Register of annual accounts SEC: Register of companies with special reporting obligations Statscan Stock Exchanges and Securities Commissions Other relevant agencies Regulator X: System X Market Analyst X: Analytics systems
Timeframe Establishment of Canadian SBR Strategy 3 months Development and Implementation of Canadian National XBRL Taxonomy 12 months Implementation of specific XBRL projects 12 months
Download the XBRL Canada Roadmap Executive Summary XBRL Canada Website at
Status of the IFRS Taxonomy with the SEC At Montreal Conference, SEC officials confirmed that foreign filers using IFRS will have to file during 2012 Subsequent Information confirms this is their position Canadian cross-listed Companies should prepare
International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation Changes between 2011 and 2012 IFRS Taxonomies
Adoptions by Canadian companies and organizations
Limited Adoption in Canada so far CSA waited for IFRS adoption to complete Several cross-listed companies using US GAAP have filed as foreign filers with SEC Deposit Insurance Corporation of Ontario (DICO) requires XBRL for filings by Credit Unions Sec Foreign Filers rule for companies using IFRS will affect about 350 Canadian companies
Implications of the extensive worldwide adoption for Canada
Why Canada should care about Global XBRL Adoption XBRL Gaining momentum on a worldwide scale Now over 70% of the world Cap is covered by XBRL filings Eg. US, UK, Most of EU, Japan, Australia, China, Singapore, S Korea Potential to improve capital market efficiency PDF information – static Canada stands to be left out of the global data availability scene