1. INFORMATION SYSTEMS AND PROCESSES BANK OF SPAINS XBRL FORMULAE SYSTEM IMPLEMENTATION AND CONCLUSIONS Víctor Morilla IT Project Manager of Bank of Spain Member of CEBS XBRL Network IX European Banking Supervisors XBRL Workshop Paris September 29th 2008 1

2. INFORMATION SYSTEMS AND PROCESSES XBRL FORMULAE DEVELOPMENT 2 Business rules document Initial Analysis Initial Analysis Document reference numbers and EU / SP classification Development Formulae intermediate formula Linkbase generation Linkbase generation Formulae linkbase Instance generation and testing Instance generation and testing Test instance documents + corrected linkbase

3. INFORMATION SYSTEMS AND PROCESSES BUSINESS RULES DOCUMENT 3

4. INFORMATION SYSTEMS AND PROCESSES BUSINESS FORM 4

5. INFORMATION SYSTEMS AND PROCESSES BUSINESS RULES WITH REFERENCES AND EUROPEAN / SPANISH CLASSIFICATION 5

6. INFORMATION SYSTEMS AND PROCESSES INTERMEDIATE FORMULA FORMAT Not convenient formula editors available when we started Intermediate XML format as temporal alternative to graphical editor Properties of the intermediate XML format: - Based on a XML Schema definition - Uses only a subset of the Formulae specification - Simplifies Xlink Syntax We designed an intermediate XML format and developed XSLT transformations to obtain the final linkbase: - Isolates us from changes in the syntax of the specification -Takes care of default values -Takes care of style guide issues But: -It doesnt check Xpath expressions - It doesnt check missing variables or name mistakes - Error detection quite limited We used Fujitsus taxonomy editor to help debugging 6

7. INFORMATION SYSTEMS AND PROCESSES INTERMEDIATE FORMULA FORMAT 7

8. INFORMATION SYSTEMS AND PROCESSES INTERMEDIATE FORMULA FORMAT 8

9. INFORMATION SYSTEMS AND PROCESSES RESOURCES About 400 XBRL Formulae for 3.400 business rules About 120 working days = 5,5 months / one person (2 months with 4 people part time) In a stable environment, we estimate 36 working days (including both development and tests) 9

10. INFORMATION SYSTEMS AND PROCESSES FIRING SUBSETS OF ASSERTIONS Each solvency statement has different frequency requirements CA: half-yearly for groups and individual companies and yearly for subsidiaries Operational risk: yearly We generally assume that not reported data is zero 10 What happens to a rule like this? Addition of operational requirements by method (OR template) must be equal to total operational requirements (CA template) What happens to a rule like this? Addition of operational requirements by method (OR template) must be equal to total operational requirements (CA template) We need a way to select which assertions must be applied depending on the data reported We need a way to select which assertions must be applied depending on the data reported

11. INFORMATION SYSTEMS AND PROCESSES FIRING SUBSETS OF ASSERTIONS Each assertion set represents the assertions to be applied to a statement A set of items in the instance document are used to claim which statements are reported (a manifest) Fujitsus processor asks the calling application before processing each assertion set Our application obtains the reference of the assertion set and checks whether the that statement is in the manifest 11 AssertionSet Assertion 1 Assertion 2 Assertion 3 Reference: Statement 3010 Reference: Statement 3010

12. INFORMATION SYSTEMS AND PROCESSES HOW ERRORS ARE COMMUNICATED Each assertion has: A reference number A label that describes the error When an assertion is not satisfied the following information is sent to the user: The reference number The label describing the error The expression that failed The value of each input variable In the case of consistency assertion: The calculated value The reported value 12 Assertion Reference: 3010-sv-1 Reference: 3010-sv-1 Label: Operational risk capital requirements not consistent with its breakdown by method applied Label: Operational risk capital requirements not consistent with its breakdown by method applied

13. INFORMATION SYSTEMS AND PROCESSES FUTURE PLANS: VALIDATION AGAINST INFORMATION IN A DATABASE 13 XBRL Instance document XBRL Instance document XBRL processor XBRL processor Xpath external functions Xpath external functions Test = abs(($assets - $prevAssets) / $assets) lt 2.00 Fact variable $assets : Concept filter General variable $prevAssets: db:fact-from-period($assets, -1) | (Assets – Assets last year) / Assets| < 200%

14. INFORMATION SYSTEMS AND PROCESSES CONCLUSIONS XBRL Formulae covers perfectly our needs Powerful Extensible Maintainable Intuitive and easy to use In spite the lack of homogeneity, it is possible to reuse formulae across different countries Market tools are promising but... 14

15. INFORMATION SYSTEMS AND PROCESSES COREP STANDS FOR COMMON REPORTING 15

16. INFORMATION SYSTEMS AND PROCESSES ARE WE USING XBRL PROPERLY? 16 d-mr:MRiskSAEQUExchangeTradedStockIndexFuturesBroadlyDiversifiedSubjectParticularApproach + d-mr:MRiskSAEQUOtherEquitiesThanExchangeTradedStockIndexFuturesBroadlyDiversified 0501 + 0502

17. INFORMATION SYSTEMS AND PROCESSES THANKS FOR YOUR ATTENTION VÍCTOR MORILLA