information systems nsa’s perspectives on xbrl, preparing for xbrl, lessons learnt víctor morilla...
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INFORMATION SYSTEMS
NSA’S PERSPECTIVES ON XBRL, PREPARING FOR XBRL, LESSONS LEARNT
Víctor MorillaProject Manager
CROSS-SECTOR XBRL SEMINAR
Madrid, May 2012
INFORMATION SYSTEMS 2
BRIEF HISTORY OF XBRL USAGE IN BANCO DE ESPAÑA
INFORMATION SYSTEMS 3
XBRL PROJECTS
AppraisalCompanies
SolvencyInformation
(COREP)Nº Participants: > 50Nº Filings/year: > 200Nº Concepts: > 950
Nº Participants: > 300Nº Filings/year: > 7000Nº Concepts: > 650
Nº Participants: > 300Nº Filings/year: ~1000Nº Concepts (EU): ~ 950Nº Dimensions (EU): 22Add. Concepts (ES): ~ 553Add. Dimensions (ES): 8 Sectorial
Statements(FINREP)
Nº Participants: > 300Nº Concepts (EU): ~ 1.700Nº Dimensions (EU): 12
Reporting requirements
2004
Public Statements(IFRS)
2006
2008
2009
2007
2010
2011
2005
Mutual guaranteeExchange offices
Nº Participants: > 300Nº Filings / year: > 1000
FINREP 2012COREP 2012
ECB BSI and MRIstatistics
2012
INFORMATION SYSTEMS 4
XBRL PROJECTS
AppraisalCompanies
SolvencyInformation
(COREP)Nº Participants: > 50Nº Filings/year: > 200Nº Concepts: > 950
Nº Participants: > 300Nº Filings/year: > 7000Nº Concepts: > 650
Nº Participants: > 300Nº Filings/year: ~1000Nº Concepts (EU): ~ 950Nº Dimensions (EU): 22Add. Concepts (ES): ~ 553Add. Dimensions (ES): 8 Sectorial
Statements(FINREP)
Nº Participants: > 300Nº Concepts (EU): ~ 1.700Nº Dimensions (EU): 12
Taxonomy development
2004
Public Statements(IFRS)
2006
2008
2009
2007
2010
2011
2005
Mutual guaranteeExchange offices
Nº Participants: > 300Nº Filings / year: > 1000 ECB BSI and MRI
statistics
FINREP 2012COREP 2012
Application / infrastructure
XBRLPrototype
Basic XBRLInfrastructure
SIIF System
XBRL Formulaintegration
Taxonomyviewer
XBRLForms
Databasemigration
Analysis DBevolution
SIIF DimensionsEvolution
2012
Model editor
INFORMATION SYSTEMS
SIIF
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SYSTEM FOR THE EXCHANGE OF FINANCIAL INFORMATION –REPORTING PROCESS
Multi-channel / Multi-protocol Communication architecture
Financial Institutions Banco de España
SubmissionsManagement
Validation results
XBRL filings
MainData repository
XBRLMetadata
XBRL FormulaValidationProcess
Oth
er
ap
plicati
on
s
Helper services
- Fulfilment state querying
- Pre-validation- XBRL viewer- XBRL on-line forms- Taxonomy browsing- Conversion tool
INFORMATION SYSTEMS 6
BENEFITS OF XBRL
INFORMATION SYSTEMS 7
Commercial bank
Supervisor
IMPLEMENTATION OF A NEW REGULATION LAW (CLASSIC APPROACH)
IT developerSystemrequirements
Regulation law
IT developer
Businessuser
IT analystSystem
requirements
C
Code
C
CodeIT analyst
Businessuser
INFORMATION SYSTEMS 8
Commercial bank
Supervisor
DATA FILING AND VALIDATION PROCESS (CLASSIC APPROACH)
Data extraction
Errors detected
Analysisand corrections
Data extraction
Validation OK
Analysis
Notification
INFORMATION SYSTEMS 9
Commercial banks
Supervisor
IMPLEMENTATION OF A NEW REGULATION LAW (XBRL APPROACH)
Businessuser
IT analyst
RegulationLaw
XBRLTaxonomy
Businessuser
INFORMATION SYSTEMS 10
Commercial banks
Supervisor
DATA FILING AND VALIDATION PROCESS (XBRL APPROACH)
Data extraction& local validation
AnalysisAnd corrections
Analysis
Validation OK
INFORMATION SYSTEMS 11
THE BUSINESS INFORMATION REPORTING CHAIN
INFORMATION SYSTEMS 12
THE BUSINESS REPORTING REALITY
Transaction data
Multiple departmental
Excel spreadsheets
Consolidated spreadsheets for
management
INFORMATION SYSTEMS 13
LONG TERM BENEFITS
COMPLETE AUTOMATION OF THE REPORTING PROCESS
-No manual intervention-Traceability of data gathered by supervisors
INFORMATION SYSTEMS
STABILITY OF THE REPORTING PROCESS
Changes should have a minimum impact
Concept identification must not change because of:Changes of naming conventions at business level (or just a correction)A concept is moved from a table to anotherA concept is kept from an old version in a new one
Examples: Common dictionary of conceptsAbstract codification
14
INFORMATION SYSTEMS 15
DON’T LEAVE THE STANDARD PATH
Avoid using the standard as a proprietary solution
Avoid constraints that are not supported by business requirements
Don’t move to XBRL taxonomies limitations in inner systems
You are not alone
INFORMATION SYSTEMS
QUESTIONS?
INFORMATION SYSTEMS 17
LESSONS LEARNT
INFORMATION SYSTEMS 18
MARKET TOOLS VS IN-HOUSE DEVELOPMENTS
In-house developments- More control
- Internal dependencies
- Slow evolution
- TCO
Market tools- Less flexibility
- Solutions ready sooner
- Lower maintenance costs
- More stability
- Consider costs of integration
INFORMATION SYSTEMS 19
TOOLS ASSISTED BY METADATA
Model editor
Taxonomy viewer
Instance editor
Validation system
Extraction for statistics
Data warehouses
Publishing system (2013)
METADATA(taxonomy repository)
Submission to EBA
INFORMATION SYSTEMS 20
SHOULD NSAS PROVIDE SUPPORTING TOOLS?
YES- Reduces the resistance
to changes
- Increases internal costs
- Unfair competition against the market
- Discourages investments by credit institutions
NO- If there is demand, the
market will provide solutions
- There is no such a thing as a “small” bank (appraisal companies example)
INFORMATION SYSTEMS 21
REPRESENTATION IN INTERNATIONAL GROUPS
International Accounting Standards Committee Foundation
– XBRL Advisory Council (XAC)
– XBRL Quality Review Team (XQRT)
XBRL International
– Standards Board
– Best Practices Board
– Abstract Model Task Force
– API Signatures Task Force
– Formula Working Group
– Rendering Working Group
– Specification Working Group
INFORMATION SYSTEMS
THANKS FOR YOUR ATTENTION