1. The truth behind the figures 2-6-2015XBRL1

2. The truth behind the figures 2-6-2015XBRL2 XBRL Deployment for Corporates Paul Snijders CEO Semansys Technologies Board member XBRL Nederland Founding member XBRL in Europe

3. 2-6-2015XBRL3 What we will cover What does XBRL mean for you How to implement Implementation strategy Threats and Opportunities key to successful adoption Implementation strategy Threats and Opportunities

4. 2-6-2015XBRL4 XBRL is a regulator’s thing Who is implementing XBRL –Banking supervisors & banks –Securities regulators & stock exchanges –Statistical agencies –Balance sheet offices & central banks –Tax authorities Reporting issues, locally and trans-nationally – Local GAAP and/or IFRS – Basel II (COREP) – Statistics – External Reporting: FR taxonomies Benefits: – Time & money savings – Improving transparency – Reliable & comparable data Are the benefits only for the regulators?

5. 2-6-2015XBRL5 Call for change in the fin. world “Above all, continue with your enthusiastic contributions to the global development of the XBRL standard. As I said at our last XBRL Conference in Tokyo: Have no doubt, you are changing the world for the better” Chairman Christopher Cox, U.S. Securities and Exchange Commission San Jose, California, Jan. 18, 2006

6. 2-6-2015XBRL6 Taxonomy creation Accounting rules Validation Regulator How do you report in XBRL 1.Regulator presents the taxonomy 2.You map it to your applications (COA) 3.Validate the results 4.Send to the regulator 5.Ready But is that really all??? Mapping (COA) Validation Companies XBRL Report Reporting Validation Compliance checking Analysis Taxonomy

7. 2-6-2015XBRL7 XBRL will be Established Ireland Germany Spain The Netherlands United Kingdom Provisional Sweden Belgium Denmark France In development Czech Republic Finland Hungary Italy Poland Portugal Starting Slovenia, Austria, Greece, Estonia, Norway, Luxemburg, Malta + Turkey Insurance Pensions SEC’s in EU Bank regulators ECCB Balance sheet office Accounting standards Federation of banks Stock Exchanges..... everywhere

8. 2-6-2015XBRL8 Global projects Australian Tax Office Banco de España Bundesbank Committee of European Banking Supervisors (CEBS) Chinese Securities Regulation Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges} Danish Commerce & Companies Agency Dutch Tax Authority Dutch Water Authority Eurostat EU Commission – XBRL in Europe Financial Service Agency of Japan The Irish Revenue Spanish Stock Exchange KOSDAQ – Korea National Tax Agency of Japan New Zealand Exchange Patent and Registration Office (PRV – Sweden) U.S. Securities & Exchange Commission Shanghai Stock Exchange 800+ companies Shenzhen Exchange Tokyo Stock Exchange UK Companies House UK Inland Revenue Bank of Japan US Federal Financial Institutions Examination Council (includes FDIC)

9. 2-6-2015XBRL9 A multitude of taxonomies Industry Stock exchange Sectors Specific Local GAAP Tax Admin Statistics National Taxonomy US-GAAP COREP IFRS International Taxonomy

10. 2-6-2015XBRL10 To be expected ……………. Companies will be confronted with multiple taxonomies Filings (GAAP), Tax adm, Statistics, Industry, banks, Sector etc, etc, Companies will push corporate taxonomies into the divisional organisational structure In each country’s subsidiaries will need to implement national taxonomies Companies need corporate control and management of ‘all’ XBRL realizations (section 404) Companies will use XBRL for internal reporting

11. 2-6-2015XBRL11 Current reporting practice 70 % of reporting in corps. is manual A large German Bank processes 200.000 statements a year A US Bank can use only 15 data items for risk assessment A Dutch bank can save 30-40M Euro by preventing retyping SME’s financial statements Organizations have over 30 reporting duties (Water Boards NL have 99 !!) Less than 10 % of spreadsheet has test procedures, 47% have significant errors A UK insurance company has 3.600 process steps for once a year filing, 60 employees, 4 months A Japanese bank lost $ 349 M over a typing error !!

12. 2-6-2015XBRL12 Cleaning up the Excel hell Large companies may have hundreds of spreadsheets that are in a gray area for Compliance reporting Sarbanes Oxley (SOX 404) The true cost of using spreadsheets likely is much higher than other approaches Eliminate as many stand-alone spreadsheets as possible from processes is the one sure way to sustain efficient compliance Although there are ways to compensate for spreadsheet control issues, the best approach is to eliminate them altogether from processes that affect external reports. In the long run, processes that run on inherently more controllable IT systems instead of stand-alone spreadsheets can save your company considerable time and money in the audit process as well as in executing day-to-day business The case The Strategy The gains

13. 2-6-2015XBRL13 Call for managed solution Reporting requirements Comply to international and local taxonomies Regulatory compliance rules Real time, interactive data Compliance Management & Control Single point of control Coordinated control and compliance rules Change management Object driven, versioning and audit Control Streamline Reporting Processes Individualized Automated processed Reduced development efforts Straight through reporting Integration with legacy systems Efficiency

14. 2-6-2015XBRL14 Corporate implementation Reporting components to consider Public taxonomies (corporate, local) Company requirements Dimensions (granularity) Compliance rules Legacy systems (charts of accounts) Mapping Centralize configuration & management Individual XBRL instance templates Automated processes

15. 2-6-2015XBRL15 Comprehensive Solution XBRL Deployment IFRS/GAAP Accounting Rules Data Source Mapping Reporting Entities Reporting Dimensions Charts of Accounts Financial Applications Validation XBRL Reporting Reporting Processes Internal Requirement External Requirement AuthorizationSecurityVersion managementAudit Trail Change management Corporate Reporting Requirement XBRL Deployment Manager Localized requirements Server based architecture Management & Control Compliance Monitoring

16. 2-6-2015XBRL16 Configuration & profiling Reporting Requirements Taxonomies Reporting Dimensions Reporting Entities Dimension, Entity & element Groups Reporting Profiles Taxonomies Elements Dimensions Entities Company Reporting Elements

17. 2-6-2015XBRL17 Taxonomies Elements Dimensions Entities Configuration & profiling Reporting Profiles Compliance rules Charts of accounts Data sources Audit and Control Validation Checks Account maps Compliance rules Validation Data sources

18. 2-6-2015XBRL18 Individual reporting XBRL Report Taxonomy Export Mapping Compliance Checks Reporting Validation Taxonomies Elements Dimensions Entities Reporting Profiles Account maps Compliance rules Validation Data sources Compliance rules Account maps Templates Reporting Entity

19. 2-6-2015XBRL19 XBRL Deployment Manager GL ERP Company Reporting Requirements Taxonomy Requirement Mapping IFRS/ Local GAAP Taxonomy Company Reporting Elements Local COA Mapping Data source Mapping Compliance Requirements Compliance Management Reporting Profile Manager Reporting Element Set IFRS/GAAP Gap Analysis Charts of Accounts Dictionary Management COA-data Gap Analysis Entities Dimensions Mapping file Accounts- Taxonomy XBRL Instance Manager Instance Templates Taxonomy elements Entities Periods Units Scenarios Segments Compliance rules Existence rules Content rules

20. 2-6-2015XBRL20 Ready for corporate use CapabilityManaged Solution Manual processes Control Auditable processes ? Compliance rules No Corporate control No Manage Single source maintenance No Automatic generation No/? Centralized configuration No Versioning No Change management No Integration Integrate in Business Operations ? Integrate Technology & Applications ?

21. 2-6-2015XBRL21 XDM a corporate solution System Integration System Integration Reliability of Internal financial reporting Compliance Taxonomy based Compliance reporting Audit & Control Audit & Control Enhance audits and controls Completeness Accuracy Completeness Accuracy Sarbanes Oxley Section 302

22. 2-6-2015XBRL22 I report, so …. I XBRL Regulators will require XBRL based reporting Corporates will have a multitude of taxonomies XDM provides a ‘managed solution’ The weather in Madrid is better than in Amsterdam

23. 2-6-2015XBRL23 Be aware: more to expect “One way, perhaps, to distance ourselves from relying on these quarterly earnings forecasts, is to make progress toward real- time disclosure. ” Michael G. Oxley, House Committee on Financial Services Washington, March 29, 2006

24. The truth behind the figures 2-6-2015XBRL24 paul.snijders@semansys.com