IFRS and XBRL Educational session

Name: IFRS and XBRL Educational session
Uploaded: 2017-08-27T10:10:06+00:00
Duration: PTM38S38
Channel: Cecilia Evans
Description: IFRS and XBRL Educational session

IFRS and XBRL Educational session
European Commission – DG Market and Services 31 May 2010 © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Agenda What is XBRL Some examples of adoption XBRL @ IASCF and IASB
2 What is XBRL Some examples of adoption IASCF and IASB IFRS Taxonomy adoption The US SEC case And in Europe? Demo © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 2

in a nutshell Universal XML-based royalty-free standard to improve publishing, exchange, analysis & comparison of financial data and business information Dedicated to : regulators, companies, banks, insurance, software vendors, analyst, auditors & accountants … Accounting Principles translated (tagged) in an electronic set of data (taxonomy) Developed and coordinated by XBRL International, a not-for-profit organization Public authorities: central banks, banking supervisors, securities regulators… Business NPO: accountants, banks, vendors, analysts… Commercial companies: firms, banks, software vendors, issuers,… Adopted and implemented worldwide © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Taxonomy Development Training Washington DC 2008/10/14-15
XBRL - Taxonomy Development Training XBRL - Taxonomy Development Training Washington DC 2008/10/14-15 Washington DC 2008/10/14-15 taxonomy report concept value context unit Copyright © Business Reporting – Advisory Group 5

Companies filing in Belgium
PDF XBRL Instance document XBRL files Accounting Upload Database Validator © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

XBRL @ IASCF/IASB Trustees’ decision in 2001
Part of the adoption and implementation of IFRSs XBRL is the de facto standard for electronic reporting Part of IFRSs development (IASB goal to provide high quality standards (IAS 1 par 9) Organizing the Presentation of Financial Statements (i.e. True and Fair view - Framework 46) Codification of concepts (help in convergence) Improve access for users to financial information Could increase the users range (i.e. translation) Could ease IFRS conversion, understanding and implementation Quality-assurance, Maintenance and Coordination of the IFRS Taxonomy The Mission of the 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 © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 14 14

XBRL governance at the IASCF
15 18 members + 3 appointed observers Monthly meetings Taxonomy review 15 members + 5 appointed observers Quarterly meetings Strategic advice 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. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. © 2010 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 15 15 15

What we provide 16 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. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 16 16 16

Due Process for XBRL Activities Stages
Input from: XBRL Advisory Council XBRL Quality Review Team XBRL International working groups Other taxonomy developers Regulators Software developers International groups: - Preparers - Financial institutions - Analysts - Users © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 17 17

Due Process for XBRL Activities Major Requirements
18 Business requirements: Time line - alignment between the IFRS Taxonomy development time line and the IASB delivery timetable (i.e. the publication time line of the yearly Bound Volume of IFRSs). Consistency - the IFRS taxonomy must reflect and be consistent with the IFRSs. Functional requirements: Interoperability - the IFRS taxonomy should ensure interoperability between different software systems. Flexibility - the IFRS taxonomy should be usable throughout the financial reporting supply chain where IFRSs are implemented (increasing market transparency, supporting better analysis, reducing reporting burden, enhancing regulation & supervision) & geographic regions. Extensibility - the IFRS Taxonomy (like the IFRSs) aims to ensure comparability of financial information (not just uniformity). Users of the IFRS taxonomy can extend it for their specific needs. Stability - the IFRS Taxonomy is intended for use by all participants of the financial reporting supply chain; the technical and accounting design must ensure it is stable and sustainable; however alignment with the IFRSs will entail necessary adjustments to the taxonomy from an accounting perspective. Technical requirements: Compliance - the IFRS taxonomy must be compliant with XII specifications. New XBRL technologies - the impact of new technologies (specifications) developed by XII should be considered. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 18 18

IFRS Taxonomy 2010 Development and release timeline
XBRL Quality Review Team (XQRT) review 4 Jan – 1 Feb 2010 Public review of ED IFRS Taxonomy 2010 19 Feb – 22 Apr 2010 Final release IFRS Taxonomy 2010 30 April 2010 Oct Nov Dec Jan Feb Mar Apr May 2009 2010 IFRS Taxonomy 2010 improvement and development XQRT review IU Public review (60 days) IU © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK. 19 19

IFRS Taxonomy adoption

IFRS Taxonomy adoption
© 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Chilean Securities and Insurance Supervisor (SVS)

Phase-in Schedule 2009 2010 2010 2011 2011 2012 What? Who? 28
“Face Financial Statements”, “Block Tagged” Footnotes & Schedules: “Detail Tagged” Footnotes & Schedules: Filer Group Starting for quarters ended June 15 or later Domestic/Foreign Large Accelerated Filers Using US GAAP Public Float >$5 billion All other Large/Accelerated Filers All other Filers in US GAAP (including smaller reporting companies) All Issuers using IFRS as published by the IASB Who? 30 day grace period, from the filing date of the related report, for the initial submission of interactive data exhibit © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Expected Benefits More financial information available to investors
29 More financial information available to investors Less costly and more timely production of financial information Increased accuracy Increased comparability and improved interpretation of financial data © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Reporting and Cost Burden Estimates*
30 Filers: 500 in year 1 – 1,000 in year 2 – 10,200 in year 3 Internal burden hours to tag ‘face’ financials: • 125 hours for the first filing • 17 hours for each subsequent filing Out-of-pocket cost for software and filing agent services: • $6140 for each filing Footnotes: • 7 hours to block tag each filing in the 1st year • 70 hours to detail tag the first filing in the 2nd year • 35 hours to detail tag each subsequent filing. Web site posting: • 4 hours to post all interactive data submissions made each year Schedules: • 1 hour to block tag each filing in the 1st year • 7 hours to detail tag the first filing in the 2nd year • 3.5 hours to detail tag each subsequent filing “70 hours seems to fall within the range suggested by commenters and what is anticipated by Commission staff” * These numbers are provided for information only. Further details are available in the SEC rule © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

The SEC rule and IFRS 31 According to the rule “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. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Call for Interest to FPIs
32 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. 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 ( 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. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

IFRS Taxonomy Extensions

IFRS Taxonomy Extensions
34 Taxonomy Extensions are defined as “additional information necessary to fulfill the requirement of IFRS principles, but not specified listed in IFRS, in order to provide more details based on specific industry, local/regional, supervision, preparer or user requirements” Observations Hard to use IFRS taxonomy without extensions No industry specific standards recognized as Generally Accepted Trade-off between Extensibility and Comparability Potential approach for IASB/IASC Foundation Collecting illustrative financial statements and identify ‘common practice concepts’ Aggregating existing concepts/extensions and making them available on the IASCF website (clearing house) Assist the inception of a new body (EEEP) for a collaborative development of Extensions © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

“XBRL has been endorsed by the European Commission Higher Level Group (HLG) and the European Parliament Committee on Economic & Monetary Policy (ECON) as a potential technology enabler for the achievement of the €150 bn savings sought by the program (increasing European GDP by 1.4%)”, said Gunter Verheugen is Vice-President of the European Commission in President Barossa Cabinet. © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

XBRL driving forces EU Council EP MS G20 Simplification XBRL Crisis
COM De Larosiere Stoiberg

Projects in Europe Business area Reporting scheme
Banking Sector (Corep & Finrep): 11 projects (6 established, 5 in progress) Business register: 13 projects (5 established, 8 in progress) Tax Returns: 5 projects (all in progress) Statistics: 6 projects identified Securities regulation: 3 (1 established, 2 in progress) Others: 9 projects (public sector, GRI…) Reporting scheme Accounting practices : local GAAP, IFRS Prudential framework : CRD/Basel II Other : CSR, KPI © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

XBRL Europe XBRL Europe was created to follow-up the XBRL initiative in Europe; current focus: To foster the emergence of common XBRL projects between members in Europe and between European countries to harmonize practices / create common practices To develop liaison and dialogue with European level organisations and European authorities (European Commission, European Parliament, European Central Bank, etc) to increase XBRL awareness To support the creation of new European XBRL jurisdictions within European countries Members: 14 jurisdictional members (XBRL Belgium, XBRL Denmark, XBRL France, XBRL Germany, XBRL Ireland, XBRL Italy, XBRL Luxembourg, XBRL Netherlands, XBRL Spain and XBRL International) 4 direct members (The Global Trust Council, the European Federation of Financial Analyst Societies, Deloitte Consulting BV and SWIFT) Working groups WG1: European Business Registers WG2: IFRS extensions for stock listed companies WG3: COREP-FINREP Harmonization WG4 : Users/analysts Website : © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Challenges and opportunities
27 member states, 23 languages… Reporting requirements: Securities regulation (IFRS) Banking supervision (IFRS, Basel II) Tax computation (GAAPs) Business register Statistics Others (SBR, CSR, ESG…) Sectors Public authorities Listed companies Banks Registered entities NPOs… IFRS Taxonomy available in various languages but … could require extensions Running projects have confirmed the expected benefits Benefits far outweigh the cost © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

The Cost issue XBRL is licence-free, so are taxonomies
Costs for regulators Visible: systems, software, taxonomy creation, training, education… Less visible: transition and change management, market perception, harmonization Costs for companies Visible: software, taxonomy mapping, training… Less visible: perception © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Why should you pay attention?
Created for, and by, accountants IFRSs are adopted (permitted or required) in over 120 countries. XBRL is part of this implementation Shift from voluntary to mandatory filing More global initiatives are emerging Software solutions and implementing services are available and affordable The IFRS Taxonomy is freely available in different languages and is the cornerstone for widespread use "We are close to the time when we shall no longer talk about XBRL … because XBRL is broadly implemented." © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Links IASB XBRL activities http://www.iasb.org/XBRL/XBRL.htm
IFRS Taxonomy Illustrated and xIFRS Annual report National Bank of Belgium ACRA and Mastercard SEC filings HTML form (example Mastercard 10-Q - Interactive Data aka XBRL files (second table for Mastercard Visualised XBRL filing for Mastercard Compare Filings Taxonomies Quality of instances © 2008 IASC Foundation. First Floor | 30 Cannon Street | London EC4M 6XH | UK.

Contact us xbrl@iasb.org +44 (0)207 246 6410 www.iasb.org/xbrl

IFRS and XBRL Educational session

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