Reducing the Reporting Burden in the Regulatory Environment XBRL Reports from SME’s to the Mercantile Registers Iñaki Vázquez June 25th 2009

XBRL as the new standard in financial information exchange.  Working framework needed: XBRL Association of Spain.  Next step: To develop useful taxonomies ◦ DGI (Identification General Data) ◦ PGC2007 ◦ ES-BE-FS, ES-BE-CB, ES-BE-FINREP, ES-BE-COREP, and IPP ◦ LENLOC and PENLOC  Integration of XBRL in commercial accounting software.  Mandatory deposit of annual financial statements allows the Business Registers to receive hundreds of thousands of XBRL reports.

Established in 2004 as a National Jurisdiction

MAIN OBJECTIVES  National and International establishment, adoption and development of XBRL language to unify the standard on financial information exchange.  Grouping together private and public entities to implement XBRL language.  Promoting and participating in national and international studies or projects on XBRL.  Planning and implementing adoption and development processes of XBRL in Spain and other countries.

Founder Members (2004)

 Land and Mercantile Registrars Association of Spain is founder member of the XBRL Association Of Spain.  Involved in working groups: ◦ Presidency of DGI Taxonomy. ◦ Member of PGC2007 Taxonomy.  At European level we’ve participated in forums that promote XBRL use for Financial Statements deposit. ◦ BRITE Project. ◦ ECRF Forum.

Business Registers of Spain

DEFINITION FROM THREE DIFFERENT STANDPOINTS  Legal Institution: safety and certainly  Public Office: depends on Ministry of Justice  Set of books: kept at Registry offices LAND AND MERCANTILE REGISTRARS ASSOCIATION  Provide services to registrars and the public.  Participates in projects related to normalization of the documents presented to the Registry.

 1995 Presentation in standard forms starts (paper).  1999 Legal format of digital deposit approved the 26th of May  2000 Voluntary possibility of digital deposit at Mercantile Registers. Two ways: ◦ Free Registrars Software. ◦ Files generated by commercial accounting software.  2004 On-line submission available, digital signature needed.

In 2008, on-line and digital deposits are more than 60% of total financial statements deposited.

Compulsory Accounting Plan Mandatory presentation formularies Digital format available On-line submission XBRL format Basement of the system It allows massive process Facilitates automatic process, user elaboration and presentation. Facilitates deposit and reception at Registers, saving costs. Faster and more reliable information exchange between regulators and users.

 Data dictionaries needed: Taxonomies ◦ Two information types: general data about the informant unit, and accounting information included in Financial Statements.  Two dictionaries for two information types. ◦ DGI Taxonomy: Identity Code, Legal Form, Address, Property structure, Basic Economic Activity,... ◦ PGC2007 Taxonomy: Balance Sheet, Income statement, Statement of changes in net worth, Statement of cash flows, and Notes to FS.  Both taxonomies are free of use and are available on the web.

DUTIES…  Approved and available taxonomies.  Legal definition of presentation format that includes XBRL, similar to previous digital one.  Automatic generation of XBRL files with Registrars free distribution software.  XBRL files storage at Mercantile Registers, submission to Association to be processed and then exchanged with any other interested institution (Bank of Spain).

DIFFERENT WAYS TO PRESENT ANNUAL FINANCIAL STATEMENTS ON-LINE Same formal content than digital deposit, but submission trough Registrars web with digital signature. PAPER Formularies provided by Mercantile Register. PDF Files downloadable from websites: DIGITAL Standard formats published. XBRL file, XML file, TIFF or JPG images, PDF and TXT (depending on the document).

Free software to assist digital elaboration of Financial Statements

 Integration software for different components of the Deposit  Free distribution.  Annual update. FUNCTIONS  Creation / import of digital deposits.  Validation of digital deposit (hash value).  XBRL import.  Allow viewing XBRL instances of financial statements.

REMARKABLE ASPECTS:  Advanced management of attached documents.  Validation of digital deposit already generated.  Evaluation of accounting coherence (test published).  XBRL import (generated by third parties).  Format checking of XBRL file.

A combined work of several public and private institutions

PGC2007 Taxonomy (new financial statements) DGI Taxonomy (auxiliary, identification general data) API XBRL PGC2007 (translation XML / XBRL, and content validation) Working group presided by Mercantile Registrars Association Working group presided by ICAC (National Institute of Auditing and Accounting) Project managed by INTECO (Ministry of Science and Technology)

Free software for digital deposit of Annual Financial Statements (ND2) Internal software for reception on new digital deposits at Mercantile Registers (NRD2) Coordination of API XBRL - PGC2007 Taxonomy developed by INTECO.

DIGITAL DEPOSIT STRUCTURE Specific information for Registers Auditing Report Annual Report Others… DEPOSITO.XML Identification Sheet, Balance Sheet, Income Statement, Changes in net worth Statement, Cash flows Statement, Notes to Financial Statements DEPOSITO.XBRL Additional Documents Deposito.zip

ANNUAL FINANCIAL STATEMENTS DEPOSITS Traditional (Paper)Digital (includes On-line submission) Standard TXT Files Automatic Generated XBRL Files by Registrars & Commercial Software  Information Exchange with public entities for: ◦ Statistical Analysis and Statistics elaboration.  Next year: ◦ Information available to Private entities, like Banks or Investors. Previously: Since 2009:

Thank you for your attention. © 2009