IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions Indian Banking Taxonomies and Its Complexities IBA – RBI Workshop 30 th October, 2009

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions2 The XBRL Journey Has Begun – Where are you? Opening The ‘Bolt On’ Approach Middle Game Partial Integration End Game Embed into Core Systems

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions3 Consider this.. Are you an XBRL User? – Why should I get down to the plumbing ? Do you want to get into XBRL Internals ? – How does this help me?

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions4 In This Session XBRL Taxonomies – A quick look at the concepts The Taxonomy building process XBRL Taxonomies with the RBI Harmonization with the Indian GAAP taxonomy Way Forward

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 5 TAXONOMIES

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions6 XBRL Taxonomies A system understandable description and classification of business and financial terms It is commonly referred to as dictionary of business and financial terms Contains the universe of accounting and other related concepts Contains the XBRL properties of the elements

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions7 Role of taxonomies Standardization Facilitates Understanding of the Data System Enables Reuse, Data Exchange and Comparisons

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions8 XBRL – A Quick Recap XBRL is an XML based standard

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions9 And XML … XML is a key Internet standard for transmission and interoperability  Electronic transmission is newer than electronic storage  With the growth of the Internet, transmission of data is exploding  No Interoperability problems earlier – lots of interoperability problems now  XML uses "tags" to define data and is self-descriptive  XML has been developed by w3 consortium

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions10 Extending XML - XBRL XBRL combines hierarchical xml data with relationships and references between the data points. XBRL combines hierarchical xml data with relationships and references between the data points. It uses Xlink technology of linking xml files It uses Xlink technology of linking xml files It links the data xml files with various other files containing definitions, presentation, calculation, references relationships It links the data xml files with various other files containing definitions, presentation, calculation, references relationships XBRL data files are a set of xml and xsd files. XBRL data files are a set of xml and xsd files.

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions11 Key Taxonomy Concepts Taxonomy Built from Schema and linkbases Schema – Contains the element declarations – XBRL properties (Data type, Balance type etc.) Linkbases – Interrelationships between elements – References to regulatory material – Human readable definitions of elements – Five types of linkbases

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions12 XBRL Taxonomy & Instance Architecture XBRL Data XBRL Data Definition XBRL Data Relationships

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions13 XBRL Taxonomy & Instance Architecture Contd. Let’s take following data as sample: Bajaj Auto Limited, March Report Statement of Income (In Rs. Mn.) Income Sales Less: Excise Duty Net Sales Other Income

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions14 XBRL Taxonomy & Instance Architecture Contd. XBRL Data: IncomeTotal Sales Less: Excise Duty Net Sales Other Income Calculation linkbase: IncomeTotal NetSales +1 Sales +1 Excise -1 OtherIncome +1 Presentation linkbase: IncomeHeading Sales 10 Excise 20 OtherIncome 30 NetSales 40 IncomeTotal 50 Definition linkbase: Income by Product Product A Product B Income by Region Asia Africa Europe Latin America Reference linkbase: IncomeTotal IAS 9 Sales IAS 9 Excise IAS 2,10 Label linkbase: IncomeTotal Total Income IncomeTotal आय (Hin) IncomeTotal Inc. Formula: Expense Ratio = Sales / Expenses Schema: Element Name: Income Abstract = false Type: monetaryItemype Balance: Debit Relationship Layer Definition Data Instance: Company A XBRL Data: IncomeTotal Sales Less: Excise Duty Net Sales Other Income Data Instance: Company B

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 15 DIMENSIONS

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions16 Dimensions in XBRL The XBRL 2.1 base specification enables storing defined set of dimensions for a data element: Company Name: ABC XBRL Tag Name: RevenueNet Period: to Label: Net Revenue आय Curreny: INR All of these dimensions together uniquely identify the data point 20000

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions17 Dimensions in XBRL The dimensions specifications released in 2008 enable storing additional dimensions. In the previous example: Revenue has two dimensions, By Product & By Region. Other Examples: – Investments by Type, by Periodicity. – Advances in India, outside India – Credit Risk On Balance Sheet, Off Balance Sheet

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions18 Terminology in Dimensions Primary Item Hypercube Dimension Domain and Domain Member Explicit and Implicit Dimensions Aggregator-Contributor All / Not All composers

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions19 Few XBRL Taxonomies around the world.. US-GAAP 2009 – Financial Reporting to US SEC IFRS 2009 – Represents IFRS 2009 FinRep & Corep – Financial Reporting & BASEL II based Reporting in CEBS* XBRL GL Indian Taxonomies Indian GAAP – Based on IFRS 2006 Architecture – Caters to Indian Accounting Standards – Taxonomy owned by ICAI RBI – BASEL II – Based on Corep, though have a different architecture – Used by banks to file their RCA (Returns on Capital Adequacy) – Taxonomy owned by RBI

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions20 Taxonomies designed for RBI..  RCA 2 Taxonomy for BASEL II Returns  Form A taxonomy for Section 42 returns  Taxonomy for GPB returns  Taxonomy for Financial Reporting * Based on the underlying principle – common elements to be defined only once

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 21 BUILDING TAXONOMIES…

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions22 Steps in taxonomy building Identifying the elements Determining the interrelationship amongst the elements Defining the XBRL properties of elements Modeling the elements and their interrelationship in the taxonomy Validating the taxonomy

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 23 RCA 2 TAXONOMY

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions24 RCA2 taxonomy Taxonomy tailored to Basel II Reporting Requirements XBRL 2.1 and Dimensional Specification Compliant Taxonomy Architecture along COREP lines Multi dimensional in nature

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions25 RCA2 taxonomy RCA 2 Taxonomy : in-baselII xsdin-baselII _def.xmlin-baselII _cal.xmlin-baselII _pre.xmlin-baselII _lab.xml Elements431 Primary elements123 Dimensions31 Domain members262 Hypercube15 Statistics Taxonomy files

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 26 ICAI TAXONOMIES

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions27 ICAI Taxonomy Structure Industry-based classification – Commercial and Industrial companies – Banking companies – Non-Banking Financial companies Core Schema – Exhaustive list of all element declarations – Common elements defined once Distinct extended links for each industry

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions28 ICAI : C&I Taxonomy Statistics Prefix : in-gaap Status : Exposure draft Extended links20 Balance Sheet11 Income Statement4 Cash Flow Statement2 Notes to Accounts1 Clause 41 Requirements2 Elements2420 (approx.)

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions29 ICAI : Bank Taxonomy Element identification Analysis of regulatory literature. – Banking regulation Act – Annual Reports of 25 banks (documenting common practice) – SEBI Listing agreement – Accounting standards* – Companies Act* *These have been referred while defining C&I taxonomy. Identifying the common elements, already defined in C&I taxonomy # # Additional task required for designing subsequent taxonomies

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 30 ICAI : Bank Taxonomy Taxonomy Structure Based on IFRS 2006 structure –Banking specific tags have been defined additionally in the core schema –Separate extended links for the bank reporting appended to existing taxonomy –Basic structure of financial statements and their details, both included in the same extended link (unlike C&I) –No dimensions have been defined, instead extended links have been used Primary references – BR Act and RBI circulars

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions31 ICAI : Banks Taxonomy Statistics Prefix : in-gaap Extended links9 Balance Sheet4 Income Statement1 Cash Flow Statement1 Notes to Accounts2 Clause 41 Requirements1 Elements720 (approx.) *Excluding dimensions

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions32 IFRS 2006 Vs. IFRS 2008 IFRS 2006IFRS 2008 Release date15 th August th June 2008 ModularityThe files (Schema and linkbases) are located in one folder. The files are organized based on the IAS and IFRS. There is a core schema containing all the elements defined, and linkages to the different folders for every IAS and IFRS. StructureThere was a common entry point, wherein the users had to select and browse the taxonomy. The entry point is entity specific and hence has to be created by the user of the taxonomy. Elementsi) 4100 (approx)i) 2700 (approx) ii) Elements outside the IAS and IFRS (common practices and industry specific) are included in the taxonomy ii) Elements only from the IAS and IFRS are part of taxonomy Dimension Vs. TuplesTuples are used in the taxonomyDimensions have been included in the taxonomy

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 33 HARMONIZING TAXONOMIES – ICAI & RBI

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 34 Taxonomy Structure ICAI Core schema C&I NBFC Banks RBI Reporting Requirements (ICAI elements + Common elements) RCA 2 Form A GPB Industry specific entry-points

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions TaxonomyProposed prefix ICAI in-gaap RBI reporting elements in-bkrp Report specific elements : RCA 2 in-bkrp-rca Form A in-bkrp-frma GPB in-bkrp-gpb Prefixes

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions36 The XBRL Journey Has Begun – Where are you? Opening The ‘Bolt On’ Approach Middle Game Partial Integration End Game Embed into Core Systems

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 37 COREP-FINREP TAXONOMIES

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions38 Overview :COREP –FINREP Taxonomies COREP : Common Reporting framework for the new solvency ratio for credit institutions FINREP Financial reporting framework for credit institutions

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions39 COREP –FINREP taxonomies FINREP Structure Imports elements from IFRS 2006 taxonomy Defined additional elements for financial reporting The relationships (or the linkbases) are newly defined Usage of dimensions Prefix of extended elements – p-FINREP

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions40 COREP –FINREP taxonomies COREP structure Designed for a multidimensional data Concept of separate primary and dimensional taxonomies Within primary taxonomies, further classification of common taxonomy and specific taxonomy Prefixes : – d- :dimensional taxonomies, – p- : primary specific taxonomy – p-cm : primary common taxonomy

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 41 QUESTIONS

IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions 42 THANK YOU!