XBRL Formulae in Practice in Regulatory Environments: Experiences and Benefits Víctor Morilla (Bank of Spain) Manuel Rodriguez & Moira Lorenzo (Atos Origin)

Bank of Spain XBRL Project Details

Appraisal Companies Project 2006 Public Statements Nº Participants: > 50 Nº Filings/year: > 200 Nº Concepts: > 950 Nº Participants: > 300 Nº Filings/year: > 7000 Nº Concepts: > 650 Moving towards XBRL: Phase 1

Legacy Database Sender XBRL instance XBRL FRONT-END Valid data Basic XBRL validations & Calculation linkbase Business rules validations IT Solution : Phase Data reported in the same XBRL statement Against other information in database (Ex: previous periods data) 4

Appraisal Companies Project 2006 Public Statements Solvency Information (COREP) Financial Statements (FINREP) Nº Participants: > 50 Nº Filings/year: > 200 Nº Concepts: > 950 Nº Participants: > 300 Nº Filings/year: > 7000 Nº Concepts: > 650 Nº Participants: > 300 Nº Filings/year: ~1000 Nº Concepts (EU): ~ 950 Nº Dimensions (EU): 22 Add. Concepts (ES): ~ 553 Add. Dimensions (ES): 8 Nº Participants: > 300 Nº Concepts (EU): ~ Nº Dimensions (EU): Moving towards XBRL : Phase 2 Mutual guarantee Exchange Offices & Appraissal companies Nº Participants: > 200 Nº Concepts (ES): ~ 550 Nº Dimensions (ES): 8 Nº Participants: > 200 Nº Concepts (ES): ~ 200 Nº Dimensions (ES): 10 5 XBRL Formula

Legacy Database Sender XBRL instance XBRL FRONT-END Valid data Basic XBRL validations Business rules validations Data reported XBRL Formula validation IT Solution : Phase 2 Formula Errors are informed Taxonomy viewer Now (from summer 2008 to present) Business rules validations 6 Against other information in database (Ex: previous periods data)

Formula linkbase development Business Rules document Documents Reference numbers & classification Formulae linkbase Formulae Linkbase + corrected Business Rules document Analysis Developing Formula linkbase Instance generation & testing 7

8 Input documents (I) Starting point : Financial statements Financial Statements Business user Business rules +

Initial business rules 1.Amounts: 0001= = = = = = = = Other internal relationship At least one of the keys 0001 and 0021 must be different from <= <= <= >= 0001(previous quarter) Input documents (II) 9 Financial Statements Business user Business rules +

Business rules 1 2 They think at an abstract business level They write in technical terms (cell codes) Business user 3 IT Analyst We infer the conceptual information from cells detail Formula rules 4 We write formula rules in abstract level Documents in technical terms 10

-Consistency, value & existence assertion -One single formula can solve many rules Analysis business rules document Business rules (legacy system): 0001= = = = = = = = business rules 1 XBRL formula (1) Classification (2) Reference numbers Reference number: 3035-sv-1 Total positions is equal to the sum of its breakdown by market risk 11

Limitations (Identifying future improvements) 0001>= 0001(previous quarter) Sometimes the business rules refer to concepts not included in the same XBRL instance (even not in XBRL format – for instance, another information stored in database -): - Concepts related to other taxonomies - Previous period information - Non-XBRL data In this case we are detecting them and taking note for developing improvements in the future There is only the information contained in the instance 12

Each assertion has: - A reference number - A label that describes the error When an assertion is not satisfied the following information is sent to the user: - The reference number - The label describing the error - The expression that failed - The value of each input variable - In the case of consistency assertion: The calculated value The reported value Assertion Label: “Operational risk capital requirements not consistent with its breakdown by method applied” Reference: 3035-sv-1 How errors are informed 13

Software – Taxonomy viewer 14

Software – Taxonomy viewer detail (es) prestamos en garantía menor o igual que cartera de negociación 15

- 85% of formulas follow very simple patterns: Arithmetic expressions (A = B + C) Comparison expressions (A < B + C) Conditional expressions (if A > B then C = D + E) - A good taxonomy design (a good data model) improves the formulasmantainability Dimensional tables design SubstitutionGroup level design Conclusions: implicity 16

Conclusions: Maintainability Business rules XBRL Formulae % COREP ,76% FINREP % Mutual guarantee (financial) ,08% Mutual guarantee (solvency) ,47% Capital planning (financial institutions) 50918% Total ,14% Number of business rules Number of XBRL formulas 17

About 400 XBRL Formula for business rules About 120 working days = 5,5 months/ one person (2 months with 4 people part time) Resources distribution Conclusions: Resources estimation (I) IT First project (COREP) Analysis Development Testing %30 %

IT About 100 XBRL Formula in 8 working days (analysis & development & tests) Conclusions: Resources estimation (II) Resources distribution Currenty (2009) 19 2 % 5 % 33 % 40 % 20 %

COREP development starts In production COREP In production FINREP subset MaySep Development started FINREP subset In production Solvency for Mutual guarantee companies Development started Mutual guarantee (solvency templates) Development started Mutual guarantee (financial templates) In production Capital evaluation report Development started Financial institutions (capital planning) In production Mutual guarantee (financial templates) Development started Exchange Offices & Appraissal companies Next in production Exchange Offices & Appraissal companies NovJanFebMarAprMayJunSep Conclusions:Formulas in taxonomies is a reality now 20

Sender XBRL instance XBRL FRONT-END Valid data Basic XBRL validations Phase 3: Full business rules validation with XBRL Errors are communicated Taxonomy viewer Business rules validations Current development 21 Against other information in database (Ex: previous periods data) Data reported XBRL Formula validation