The Yellow Brick Road of

XBRL

Adopting the XBRL Data Standard,

Separating Practice from TheoryJon Wisnieski

November 5, 2003

The Setting

Three federal regulators

similar but separate requirements and responsibilities

8,300 banks nationwide

Quarterly financial data

Collected, validated, analyzed and distributed

Cycle that takes 60+ days

The Business Objectives

Decrease the time spend

Decrease the cost of data collection

Adopt open standards to increase industry transparency

Create a flexible system

Leverage private sector strengths and relationships

Essential Elements of the Solution

Develop a comprehensive data repository—one system

of record

Create an extensible platform, shared by the FDIC, OCC

and FRB

Adopt XBRL standards to facilitate the movement of data

End our legacy application approach

3rd party hosting of a shared facility

Re-engineer business processes to leverage automation

Some Project History

Collaborated with multiple stakeholders from the start:

Interagency discussions

Industry Roundtables

Request for Information (RFI)

Formed interagency Steering Committee what was needed, but not the “how”

Request for Proposal (August 2002)

Today’s Picture

Unisys Corporation—design, build and maintain

Aggressive schedule

Established industry focus groups

Leveraged industry experts

XBRL

Software vendors,

Industry trade groups

Project Status

Requirements have been defined and documented

Programming is underway

Industry-based focus groups have been convened

First functional pilot anticipated by early 2004

Implementation and processes by 4th Quarter 2004

Bridges We Had to Get Over

“But this is the way we always do it”

“Why can’t we build it ourselves?”

Who will own/run/pay for this thing?

XBRL – new, risky, why be one of the first?

Plenty of proposals – which was best?

Exactly what do we want?

Are we sure we want that?

Bends in the Road

Nailing down the costs, and business case

Designing, developing and confirming the taxonomy

Conducting reality checks with major stakeholders

Adding new resources and bringing them

Transition from Concept to Production

Developed a proof of concept

Developed a detailed Request for Proposal

Bid conferences to solicit and answer bidder questions,

and refine the vision

Carefully evaluated proposals

Established comprehensive project team to guide the

contractors’ work

Early Decisions

Prove the model

Take a ten-year view

Let the industry propose the “how”

Let the government specify the “what”

Advanced analysis and taxonomy

Why the Call Report?

Foundation data for bank’s 8,300 institutions report quarterly Multiple usages

Data structures are well-documented 2,000+ data fields 1,500 validation edits agreed upon and published 500 pages of Instructions 25 Schedules 2 Call Report Forms

Why XBRL?

Open Standards

Promotes effective data exchanges

Lower long-term costs

Efficiencies,

Improved data quality

Timeliness

Business rule based

XBRL frameworks are extensible

Impact on the Agencies

A centralized data storage and processing facility

Shared costs and management

Meta-data published in XBRL format

Expedited data publication

Enhanced interagency standards for data quality

Agreement on what constitutes “Quality”

Publishing criteria which banks are accountable

Impact on the Banks

Elimination of paper-based report requirements

Use of a standard meta-data set

Emphasis on validating data prior to submission

Internet delivery of data to the repository

Increased awareness and potential for XBRL

Culture Shifts

Create a shared enterprise

Emphasize data, not forms

Shift from proprietary standards to open standards

Move toward electronic exchange model

Adopt an industry-wide

Need for Industry Coordination

Close coordination with XBRL International

Active participation from banks

Early and intensive consultation with intermediaries

Engage in dialogue with industry associations

Future Vision for Regulatory Reporting

Build extensible platforms

Adopt solutions that are language and platform neutral

Emphasize reuse of data

Collect it once, use it many times

Coordinate efforts among regulators

Expand the use of XML-based standards

What is the Potential?

Common data across reporting boundries

Tax reporters

SEC filings

Census

Compliance reports to regulators

Straight-through processing

Communal repository on the net

Stating the Obvious (our lessons learned)

Carefully craft and hold the vision

Human factor

Accommodate research and development time

Be selective about what you bite off

Discuss and define potential risk

Be ready for disappointments – and celebrate every step

forward

CDR XBRL Focus Group

Friday

2:30 til 4:30

@PwC

1420 5th Ave

Between Pike St. and Union St.

Questions?