IASC Foundation XBRL Team Technical Issues Madrid, 5-6 October 2006

2 Madrid: XBRL & IFRS Issues List of issues Taxonomy management & development Versioning What kind of versioning solution should IFRS-GP provide? What’s the scope of versioning?versioning solution Taxonomy modularisation What should be the scope of modularisation? How “deep” to modularise?modularisation Taxonomy architecture How to create consistent IFRS-GP & IFRS-SME schema architecture? Is atomisation a good solution?consistent IFRS-GP & IFRS-SME schema architecture Translation issues How to foster the adoption of IFRS-GP? How to provide multilingual taxonomy? Lack of language attribute on extended links.multilingual taxonomy Taxonomy Element Search Demo Accounting issues Restated labelRestated label, Debit / CreditDebit / Credit Technical XBRL issues discovery of IFRS-GP linkbases in extensions discovery of IFRS-GP linkbases in extensions – How to allow (force) software to discover “old” IFRS-GP linkbases in extensions (AU case)? References Reuse Use attribute

3 Madrid: XBRL & IFRS Issues List of issues (cont’d) Extensibility issues IFRS-GP Taxonomy relation to other international taxonomies Convergence Taxonomy Extension Framework How to provide a comprehensive and consistent framework for extensions? Should the IASCF team provide one?framework for extensions Tuple extension Tuple content model extension Instance collection Rounding issues How to avoid rounding errors / issues in IFRS-GP and extension instances?rounding errors / issues XBRL PL CL Issues Structualisation & cross-context calculation Context Mapping Tools issue and demo

4 Madrid: XBRL & IFRS Issues Versioning Issues: Introduction How to capture differences Detail of data collection Equality of concepts Modularisation Default values Complex XML elements content Dependencies of changes Arcs and locators of linkbases Structure of a diffing linkbase Visualisation of a diffing linkbase

5 Madrid: XBRL & IFRS Issues Versioning Issues: Solution INDEX

6 Madrid: XBRL & IFRS Issues Taxonomy Modularisation: Issues Taxonomy should be modularised to allow easier extensibilty Question: what should be the level / base of modularisation? Structures? (e.g. Assets, Liabilities) IASs / IFRSs? (IAS 1, IAS 14) Concepts? Financial report modules? (e.g. Balance sheet, Income statement)

7 Madrid: XBRL & IFRS Issues Taxonomy Modularisation: Current Solution INDEX

8 Madrid: XBRL & IFRS Issues Taxonomy Modularisation: Solution INDEX

9 Madrid: XBRL & IFRS Issues Taxonomy Architecture: Issue Atomisation

10 Madrid: XBRL & IFRS Issues Taxonomy Architecture: Solution This issue is currently under discussion Various solutions are investigated in XBRL Lab INDEX

11 Madrid: XBRL & IFRS Issues Translation Issues: Aim Provide a small sample of some of the issues faced when translating taxonomy labels

12 Madrid: XBRL & IFRS Issues Issue #1: Label linkbase files Single Combined File Separate Files

13 Madrid: XBRL & IFRS Issues IFRS-GP taxonomy uses standard labels – which aren’t really standard Restated labels; and Opening/closing balances only Issue #2: Types of Labels

14 Madrid: XBRL & IFRS Issues RoleLabel for item NetResultForeignCurrencyTranslations (period type = duration) standard labelCurrency Translations, Net terse labelF/X Net verbose labelForeign Currency Translations, Net Result positive labelCurrency Translations Gain positive terse labelF/X Gain positive verbose labelForeign Currency Translations, Net Gain negative labelCurrency translations, Loss negative terse labelF/X Loss negative verbose labelForeign Currency Translations, Net Loss zero label zero terse label zero verbose label total labelTotal Currency Translations, Net Similes ??? Label for item FinishedGoodsInventory (period type = instant) period start labelFinished Goods Inventory, Beginning of Period period end labelFinished Goods Inventory, End of Period

15 Madrid: XBRL & IFRS Issues Issue #3: Case All nouns, verbs and adjectives appear with an initial capital; But, conjunctions and prepositions do not Names are formed by Label CamelCase Concatenation (LC3).

16 Madrid: XBRL & IFRS Issues Issue #4: Sentence Structure Unique sentence structure Accommodates searching on concept labels

17 Madrid: XBRL & IFRS Issues Issue #5: Minimum Context Using the other linkbases for information, in particular the presentation linkbase

18 Madrid: XBRL & IFRS Issues Issue #6: IFRS-GP Number of Elements Repetition Artificial terms Compound terms Terminology list/force translation

19 Madrid: XBRL & IFRS Issues Issue #7: Tools Maturity Creation a separate Italian IFRS-GP label linkbase. 1.To make the import of ifrs-Italian labels into the ifrs taxonomy creating a separate label linkbase, I have opened the ifrs-gp taxonomy without loading the label linkbase with English labels; 2.Then I made an import of the excel worksheet with Italian labels. The “Import type” I have chosen was “Labels” and in the “Key Field” I selected “Name”, in addition in correspondence of the row “Italian Label” of “Import field” view pane I have selected “Label” for the “Taxonomy field”. (I did not know which was the correct import type, but making an export from the file with English labels linkbase I tried to build an excel file with Italian labels) 3.I have saved the Taxonomy (ifrs-gp xsd) with the new imported excel file so that a new label linkbase has been created (ifrs-gp label.xml). But the file ifrs-gp label.xml is the label linkbase with the Italian labels; 4.Then I have changed the name of the file in ifrs-gp label-italian.xml; 5.I have opened with “Notepad” the schema file ifrs-gp xsd and I have changed also in the schema the name of the label linkbase file into ifrs-gp label-italian.xml; I have saved the Taxonomy and copied into the folder the label linkbase file ifrs-gp label.xml, but the original file with the English labels; 8.Then I have opened again in “Notepad” the schema ifrs-gp xsd, I have added manually the code for the label linkbase ifrs-gp label-xml; Finally I have saved the Taxonomy with Italian and English labels in two separate link bases. Unicode Issue

20 Madrid: XBRL & IFRS Issues Issue #8: Completing the Translation Can’t translate extended links which group elements

21 Madrid: XBRL & IFRS Issues Issue #9: Cooperation on Translation Required IFRS-GP – English, German, French, Japanese, Portuguese, Polish, Spanish, Dutch, Hungarian & Italian CRAS FLIPA – Italian, Spanish, Japanese & English US GAAP – Japanese & English German GAAP – German & English Dutch GAAP – Dutch & English Belgium GAAP – French, Dutch & English

22 Madrid: XBRL & IFRS Issues

23 Madrid: XBRL & IFRS Issues Review: (GermanAP Version 1.0) INDEX

24 Madrid: XBRL & IFRS Issues Taxonomy Search

25 Madrid: XBRL & IFRS Issues Restated Issue Restated values are often reported in financial statements (especially movements in equity) How should restatement be defined? As an element in the taxonomy? As a separate context? Is the restatedLabel role required?

26 Madrid: XBRL & IFRS Issues Restated Issue: Solution Further issues: cross-context calculation not allowed Issue under discussion – XBRL Germany: Thomas Klement INDEX

27 Madrid: XBRL & IFRS Issues Debit / Credit Issue XBRL rules allow only certain combinations of debit / credit values for balance attribute that are valid according to calculation linkbase validation Various approaches are however possible to model calculation linkbase (weights) SummationItem Target Summation Item Source

28 Madrid: XBRL & IFRS Issues Debit / Credit Contra Entries A particular set of rules was applied in the IFRS-GP Taxonomy according to most common accounting rules 3 – level algorithm was applied to define balance attributes consistently with calculation linkbase Contra entries Example: COGS INDEX

29 Madrid: XBRL & IFRS Issues Discovery of IFRS-GP Linkbases How to force discovery of “old” IFRS-GP linkbases in IFRS- GP extensions?

30 Madrid: XBRL & IFRS Issues Discovery of IFRS-GP Linkbases: Solutions INDEX

31 Madrid: XBRL & IFRS Issues References Reuse - Issue On AssetsDisclosures On HedgingAssetsNonCurr ent Pointing to IAS 1 68 d Pointing to IAS 1 68 c From AssetsDisclosure s to its reference resources IAS 1 68 d From HedgingAssetsNon Current to its reference resource Pointing to IAS 1 68 d IAS 1 68 c IFRS GP Elements locatorsArcs between element locators and resources Resource for referencesIAS/ IFRS Bound Volume

32 Madrid: XBRL & IFRS Issues References Reuse - Solution INDEX On AssetsDisclosures On HedgingAssetsNonCur rent Pointing to IAS 1 68 d Pointing to IAS 1 68 c From AssetsDisclosure s to its reference resource IAS 1 68 d From HedgingAssetsNon Current to its reference resource IAS 1 68 c From AssetsDisclosure s to its reference resource Elements locatorsArcs between element locators and resources Resource for referencesIAS/ IFRS Bound Volume

33 Madrid: XBRL & IFRS Issues Use Attribute: Issue Inconsistency in the “use” attribute (FRTA vs Spec schema)

34 Madrid: XBRL & IFRS Issues Use Attribute: Solution a possible solution to this issue might be to set a default value for use, according to XML Representation of Attribute Declaration Schema Components INDEX

35 Madrid: XBRL & IFRS Issues Convergence How to converge IFRS-GP & US GAAP taxonomies?

36 Madrid: XBRL & IFRS Issues

37 Madrid: XBRL & IFRS Issues Convergence: Solution INDEX

38 Madrid: XBRL & IFRS Issues Taxonomy Extension Framework: Issue How to provide consistent Taxonomy Extension Framework? Extensions repository Supporting software Guidance …

39 Madrid: XBRL & IFRS Issues Taxonomy Extension Framework: Issue INDEX

40 Madrid: XBRL & IFRS Issues Tuple Content Model Issue It is impossible to extend tuple content model

41 Madrid: XBRL & IFRS Issues Tuple Content Model: Solution Recreation of tuples (and renaming) is required INDEX

42 Madrid: XBRL & IFRS Issues Rounding Issues XBRL Spec’s issues with rounding (decimals, precision) Mapping issues while using external software (MS Excel)

43 Madrid: XBRL & IFRS Issues Rounding Issues: Solution Excel option: “Precision as displayed” (Tools -> Options -> Calculations) XBRL attributes: decimals=“INF” (FRTA rule), precision not used ??? Values need to be input as originally stated (rounding / truncating not recommended)

44 Madrid: XBRL & IFRS Issues Presentation & Calculation Issues Presentation linkbase Does not work as a “presentation” linkbase – rather works as “structuralisation” linkbase Calculation linkbase Does not allow cross-context calculations Does not allow calculations other than adding, subtracting INDEX

45 Madrid: XBRL & IFRS Issues Demo Solution of Context Mapping