Ignacio Nacho BoixoThe XBRL Network of the

Committee of European Banking SupervisorMay 5, 2008 - Eindhoven, Netherlands

How to foster harmonization through

Best Practices

What is the problem?Basel II, IFRS …

EC 2006/48 & 49 …

Country 1

Sup 1

Report 2Report 1

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Country 3Country 2 Country 27

NCB 2 FSA 3 Sup 27

Report 27

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Report 3

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National Regulation

Transposition into national Legislation

European Law9X,XX% best practices + EU requirements

National Implementation

XBRL challenge!

How to maintain harmonization?

Global best practices

Why are Best Practices important?

Technological standards (as XBRL) are prone to be implemented in an incompatible fashion.Top-down harmonization is a traditional option when a hierarchical authority is on duty.Bottom-up harmonization is based in voluntary persuasion through Best Practices explanations about design/implement.

XBRL Best Practices will support the European supervisors and financial institutions by providing a set of relevant and applicable recommendations when developing and implementing XBRL reporting frameworks.

How Best Practices Board runs? ISCISC

International Steering CommitteeObjective: Ultimately charged with the responsibility of considering and a

BPBPart -time XBRL Best Practices Board

7 Members (annual terms), maximum 3 from ISC of which one is Chair of XSB

BPBBPBPart - time XBRL Best Practices Board

7 Members (annual terms), maximum 3 from ISC of which one is Chair of XSB

Practices Working GroupsPractices Working GroupsPractices Working Groups

2 Members:Software(XML and XBRL experts)

2 Members:Regulatory Reporting

1 Member:Financial Analysis

2 Members:Program Management

Permanent (standing)Permanent (standing) Temporary ( ad hoc )Temporary ( ad hoc )

Chair

Members

Objective: Create XBRL development, integration, and maintenance practices intellectual property

appoints

selects

proposes documents for approval monitors compositions

elects

confirms selection and appointments

Vice Chair

Chair

Members

Vice Chair

Initial appointment

After 1st Year(if necessary)

Initial appointment

charters and disbands

ISCISCInternational Steering Committee

Objective: Ultimately charged with the responsibility of considering and approving the release and publication of certain key documents and pronouncements (particularly recommendations)

BPBPart -time XBRL Best Practices Board

7 Members (annual terms), maximum 3 from ISC of which one is Chair of XSB

BPBBPBPart - time XBRL Best Practices Board

7 Members (annual terms)

Practices Working GroupsPractices Working GroupsPractices Working Groups

2 Members: 2 Members:Regulatory Reporting

1 Member:Financial Analysis

2 Members:Program Management Software

What about deliverables?

Request for Comment (RFC):

A document describing existing practices. There is value simply in collecting together the practices used in different XBRL projects. While it is best if it contains empirical analysis, no overall evaluation is expected.

Practice Note (Note):

A document that suggests effective practices for defined situations, reflecting the consensus of the working group insofar as it represents XBRL International.

What on Practice Working Groups?

Project Management (PM): Organization and execution of large scale projects, especially taxonomy development and maintenance projects.

Reporting Process (RP): Using XBRL appropriately across many organizations in a “supply chain”, taking into consideration all aspects of data exchange.

Taxonomy Architecture (TA): Domain, Logical and Physical models to ensure reusability of the content of XBRL taxonomies.

Vendor-to-vendor Interoperability (VI): Implementation methods that maximize the likelihood that XBRL produced by one vendor’s product will be interpreted correctly in another.

CEBS Priorities:Use of Matrix Schema as communication tool among Supervisors and XBRL experts

Project Management and taxonomy extensions

Banking Supervisors XBRL Teams coordination

Creating instances, identifying filers, rounding

Use of open explicit versus typed dimensions

Resources:

www.corep.info/documents/documents_project.html

www.xbrlwiki.info CEBS Best Practices arena

www.xbrl.org Website