Title of presentation X-DIS/XBRL Project European Statistical Taxonomy Pedro Jiménez – Eurostat Contractor Software AG 11/21/2018

X-DIS/XBRL Project Definition – Task list - Index Task Name Task Description Task 1 Mapping of existing taxonomies First of all an inventory of all relevant taxonomies at the time of the start of this pilot will have to be established. A detailed line by line mapping exercise should be performed between the requirements in the relevant statistical legislation and these taxonomies. This will help determine whether the statistical requirements are not already available in the existing taxonomies. Task 2 Monitoring XBRL developments Other than the detailed analysis of the taxonomies, developments in existing XBRL projects in statistical and accounting domains should be monitored very closely. This will avoid duplicating efforts. Throughout the duration of the project, Eurostat should be kept informed of these developments and the possibilities for synergy with the pilot project should be outlined. Task 3 Creation of a statistical taxonomy Based on the outcome of task 3.1., it should be determined whether or not the creation of a statistical taxonomy is useful and desirable. It should also be established if a comprehensive taxonomy (encompassing all European statistical reporting requirements) should be created rather than taxonomies per statistical field (SBS, STS, BOP etc.). Member States could afterwards extend these taxonomies in order to integrate their own additional reporting requirements. Task 4 Test phase As suggested in the feasibility study, the taxonomies should be tested in a live environment with the cooperation of 2 or 3 NSIs. Each participating NSI would have to involve a sufficiently large number of enterprises in order to estimate the total population for which the taxonomies could be acceptable and subsequently used. A broad variety of enterprises should be covered (SMEs and listed companies, enterprises in different business lines, companies who are part of a group or consortium and individual businesses). In this phase it should also be investigated how XBRL reporting of microdata from enterprises to NSI can be brought in line with the subsequent SDMX reporting of aggregated data from NSI to Eurostat. Task 5 Acceptance If the test phase proves successful, it has to be established if XBRL can be proposed to the NSIs as a tool for their data collection from enterprises and whether the latter would be inclined to adopt it. Aspects of respondent burden, initial investment, and media to be used for data exchange and running costs will have to be investigated. Task 6 The use of XBRL in surveys by the NSIs A further issue to investigate is the use of XBRL in surveys. Is it realizable for enterprises to no longer send their information to the NSI, posting data instead on their websites? The data would be ‘picked up’ by the NSI via a web search engine with an XBRL-tag as search criterion.

Task 1. Mapping Procedure (2) NSI (1) Statistical frameworks ENTERPRISES SBS STS PRODCOM LFS … SCOPE DEFINITION MODELIZATION MAKE INVENTORIES OF SBS CHARACTER-ISTICS PARAMETRIZATION DETERMINE VALUES TO COLLECT TO MAKE SBS CHARACTERISTICS MAP VALUES TO ACCOUNTING CONCEPS FIND DATA MODEL common industry services trade credit entities insurance pension funds REGULATIONS FIND OUT RELATED TAXONOMIES / ACCOUNTING PRINCIPLES IFRS (sets of characteristics)

Task 3. Taxonomy X-DIS/XBRL IFRS scenario For IFRS scenarios (as a proof of concept and base for a future XBRL Statistical Taxonomy) IFRS-GP 2005 Char. Label xdis-eu-sbs-ci-characteristics-2006-09-01.xsd Char. Ref. Var. Label xdis-eu-sbs-ci-variables-2006-09-01.xsd Var. Pres.

IFRS Based taxonomies – Future Scenario Perspectives Adoption for EU Member States Adapt to Member States Business Accounting Frameworks By Software Developers By Groups of Interest Strong opposition to these changes will be possible Long term scenario to adopt and Implement IFRS based Accounting by Member States 2010 and beyond What could we do? IASB are preparing an IFRS for Small and Medium Enterprises ongoing work Could be obtained from the IASB Site http://www.iasb.org/uploaded_files/documents/16_33_DraftEDSMEs.pdf Monitoring the evolution. A good opportunity to the IFRS adoption in SME

IFRS The current IFRS Taxonomy is based in Accountancy terms and needs of reporting of large companies (listed companies). IFRS for SME could help to create a Taxonomy based on the needs an capabilities of the SME. In Statistics terms, the universe of enterprises surveyed are related with the economic structure of the countries. The listed companies cover a big percentage of the Gross Domestic Product, this is true depending on each country. The labor force and the number of enterprises is not directly related with the previous idea, so SME represents a huge amount of the statistical samples. Issue Would be a good idea develop an Taxonomy adaptation of the IFRS by SME?

How to work with Statistical European Taxonomy? IFRS scenario for Member States For National Statistical Taxonomies based on European Statistical Taxonomy will be necessary to extend, in XBRL sense, the taxonomy offered by Eurostat, including the new elements and linkbases. IFRS-GP 2005 Char. Label xdis-eu-sbs-ci-characteristics-2006-09-01.xsd Char. Ref. Var. Label xdis-eu-sbs-ci-variables-2006-09-01.xsd National GCD Var. Pres. Var. Pres. xdis-MS-sbs-ci-variables-2006-09-01.xsd Var. Calcul Var. Label

Analysis on IFRS scenario According to project questions, 3 possibilities on IFRS scenario: Number of taxonomies EU Level Taxonomies 1 n no ¿case 1? yes ¿case 2? ¿case 3? But there is a lot of freedom and unknown objectives that required definition to narrow down the problem… General Purpose FR European Statistics Regulation National FR National Statistics Extension FR tax Statistics taxonomy National tax National Statistics taxonomy EU Regulations XBRL taxonomies Analysis for what are the objectives, minimize degrees of freedom…

How to reduce Enterprise Burden based on IFRS Regulators are forcing to listed companies to use IFRS as a mechanism of transparency and comparison between Enterprises of different countries, CESR . A Statistical taxonomy based on SME’s IFRS could offer advantages Obtaining Scale economies for those that are reactive front these changes Software vendors Big ERP providers Sharing cost and maintenance efforts for NSI’s Including other Statistical Frameworks European Statistical Taxonomy could have the same function of IFRS-GP taxonomy?

Analysis on IFRS scenario accounting POLITICAL / ACCOUNTING ISSUES ¿ Meta-accounting ? Mutual dependences TECHNICAL FREEDOM ARCHITECTURE CONSTRAINTS Metadata (XBRL) Data

Analysis on IFRS scenario Evolution Standardization ENTERPRISE A ENTERPRISE B TECHNICAL FREEDOM ARCHITECTURE CONSTRAINTS POLITICAL / ISSUES Mutual dependences accounting accounting ¿ Meta-accounting ? PROCESS INTEGRATION ¿ Meta-accounting ? We are here Metadata (XBRL) Metadata (XBRL) DATA EXCHANGE Today’s software (tech. level) Data Data

Snapshot on Possibilities GAAP IFRS European Taxonomy (s) European Taxonomy (s) yes no yes no REENGINEERING AND PROCESS MODIFICATION NON INTRUSIVE APPROACH REENGINEERING AND PROCESS MODIFICATION RAISE XBRL AWARENESS Common Methodology ¿Unique Taxonomy? no yes AD HOC TAXONOMIES UNIQUE TAXONOMY ? ? ? DIFFICULT ACCEPTANCE ENJOYING TECHNICAL BENEFITS ¿WILLINGNESS TO EXTEND? BROAD ANALISIS REQUIRED ENJOYING TECHNICAL BENEFITS

Questions? Could the adoption of IFRS for SME and its transformation in a SME European Statistical Taxonomy reduce the burden for enterprises on Statistics? Monitoring Would be a good idea develop an Taxonomy adaptation of the IFRS by SME? It is an opportunity the IFRS adoption and XBRL to improve the process for data collection?