REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS Standard formats and IASCF-XBRL taxonomy An experience from the European Commitee of Central Balance Sheet Data Offices (ECCBSO) Manuel Ortega Head of the Central Balance Sheet Data Office Division Chairman of the IIIWG of the ECCBSO 10th XBRL International Conference Brussels 17th November 2004

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 2 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS DO WE HAVE A PROBLEM OF COMMUNICATION? YES Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 3 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS QUESTION TO COMPANIES: GORGED WITH STATISTICS, QUESTIONNAIRES AND SURVEYS? YES – Cost – Redundancy Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 4 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS QUESTION TO STATISTICIANS, INVESTORS, LENDERS, OTHER USERS: ARE YOU REALLY DISAPPOINTED WITH INFORMATION RECEIVED? YES – Cost – Inadequacy – Lack of comparability Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 5 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS FAITH AND HOPE, TO COMBINE BOTH POLES OF COMMUNICATION IFRS: an option for homogeneization XBRL: an opportunity for connecting supply and demand of information Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 6 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS SOME LIMITS AND DANGERS. ABOUT IFRS: -A common accounting system is needed, but -What will happen with SME? -Comparability inside countries -Are IFRS biased towards a group of users (investors)? -Some figures: Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 7 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS SOME LIMITS AND DANGERS. ABOUT XBRL: -Regulators are becoming prepared for XBRL in Europe. Are companies prepared too? -Easy access? It depends on the integration of the information in companies TWO NEEDS: -Continue with standard formats until XBRL is sufficiently used by corporations -Involve IT corporations, which develop accounting software for SME, in order to assure a rapid use of XBRL Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 8 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS WHY STANDARD FORMATS / XBRL TAXONOMIES? -Good for users, that: -Profits on comparability -Reduce costs and make access to data easier -But also for companies, that: - They want to know their obligations - Especially when an accounting change is approaching -Best way to introduce IFRS in Europe -It means a reduction on reporting burden (several users can reach an agreement on the format or on the taxonomy) Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 9 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS EUROPEAN COMMITTEE OF CENTRAL BALANCE SHEET DATA OFFICES (ECCBSO) -Infomal club of CBSO belonging to NIS and NCB -Experience using accounting data for several purposes; some figures: -Banque de France: groups, companies (74% coverage of employment in 2002) -Banque de Belgique/Nationale Bank van België: annual accounts (100% coverage in 2002) -Banco de Portugal: quarterly accounts (45,4% coverage in 2002) -Banco de España: annual accounts (45% coverage in 2002) -Experience facing the problem of harmonization: BACH database Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 10 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS III WG OF THE ECCBSO Targets: -Monitor and report to the ECCBSO on IFRS implementation process -Analyze the foreseeable impact on databases and system of analysis -Creation of an IFRS-based format Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 11 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS IFRS-BASED STANDARD FORMAT: STRATEGIC PLAN Use of XBRL-IASCF taxonomy (July 2003) Monitoring with real examples (13 listed groups) Methodological note: first draft finished Definition of “essential information” Reduction of the format to a common and essential format Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 12 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS IFRS-based standard format: characteristics Great level of detail, to allow subsequent reduction Each item provides IFRS reference and XBRL tag available Employment, even though not asked for in IFRS Presentation principles : Use of net values Non current / current presentation of balance sheet Income statement by nature / by function Statement of cash-flow (both methods) Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 13 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS Contents of the extended format: General characteristics Options IAS Business combinations Consolidation Employment (not required by any IFRS) Balance sheet Income statement (by function or by nature) Statement of changes in equity Cash-flow statement (direct, indirect or indirect alternative) Notes Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 14 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS There is a note for each of the following items: Property, plant and equipmentBorrowings and payables Investment propertyBorrowings movements Intangible assetsIncome tax Biological assetsDefined benefit post-employment plans Financial assetsEquity Current assetsRelated parties Provisions and grantsSegment reporting Hedging instruments and riskAssets held for sale Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT 15 REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS BEFORE THE PRESENTATION OF THE FORMAT AND ITS TAXONOMY EXAMPLE THREE DEMANDS: -It is convenient that IASB approves and updates the IASCF-XBRL taxonomy at the same pace IASB introduces changes -If SME standards are developed by IASB, all users’ needs should be taken into account -HOW AND WHEN: Asking for a more accessible channel (XBRL) to annual accounts is a fair demand. But: -While XBRL is not used by SME, need of standard formats will remain. -Why not asking for an early access, that is to say, an early deposit of the accounts? Standard formats and IASCF-XBRL taxonomy An experience from ECCBSO

The ECCBSO Standard format Example Prepared with contributions of Banque Nationale de Belgique / Nationale Bank van België

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS  ECCBSO Standard Format:

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS  ECCBSO Standard Format:

General presentation WGIII Taxonomy IFRS Taxonomy Extension ifrs-gp WGIII.xsd Presentation Link ifrs-gp WGIII- presentation.xml ifrs-gp WGIII- label.xml Label Link Instance document Stylesheet Company xml ifrs-gp xsd ifrs-gp label.xml Company html

Taxonomy - Extension Extension Element list Element attribute DTS

Taxonomy - Presentation Link Presentation tree

Instance document Contexts Data

Stylesheet Excel sheet Stylesheet

STATISTICS AND CENTRAL BALANCE SHEET DATA OFFICE DEPARTMENT THANK YOU FOR YOUR ATTENTION Manuel Ortega