8th November th XBRL International Conference Combining standards: an example of European Central Banks using XBRL and IFRS to reduce the reporting burden on European corporations An experience from the European Committee of Central Balance Sheet Data Offices (ECCBSO) Manuel Ortega. Head of the Central Balance Sheet Data Office Division / III WG of the ECCBSO Chair / Strategy Committee of XBRL Spain Chair Josef Macdonald. IASCF XBRL Practice Fellow / IFRS Taxonomy Working Group Chair / XBRL International Domain Working Group Chair

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 AGENDA Background III WG of ECCBSO Standard Formats ECCBSO/IASCF Joint XBRL Project

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 THE OPPORTUNITY TO COMBINE STANDARDS Corporations face the workload of external reporting - Different demanders: - Tax authorities - Mercantile registers - Statistical units - Commercial banks - Shareholders - University researches - Local and central government - Different levels of detail - Different timing - Different “computer languages”

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 THE OBLIGATION FOR COMBINING STANDARDS Brussels European Summit, 20th-23th March, 2003:  Reduction of reporting burden on companies Directive 2003/58/EC:  Elimination of paper before 2007 Corporation data, subject to this Directive, to be presented/demanded in public registers: - Can be presented in electronic formats by companies - Can be demanded in electronic formats by users

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 THE NEED TO COMBINE STANDARDS XBRL, only for large listed corporations? NO: also necessary for SME’s, millions of corporations affected in Europe

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 EUROPEAN COMMITTEE OF CENTRAL BALANCE SHEET DATA OFFICES (ECCBSO) Informal group of CBSO‘s belonging to NIS and NCB Experience using accounting data for several purposes:  Risk assessment  Economic analysis  Statistics Common tool: corporation's annual accounts Different goals, different questionnaires 5 working groups: Risk assessment, BACH database, ESD database, Study WG, IFRS impact and CBSO databases (III WG)

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 AGENDA Background III WG of ECCBSO Standard Formats ECCBSO/IASCF Joint XBRL Project

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG OF THE ECCBSO Targets: Monitor and report to the ECCBSO on IFRS implementation process, new projects and its impacts on CBSO XBRL and CBSO Creation of an IFRS-based format and its taxonomy extension

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 Good for users, CBSO among others, that:  Profit from comparability  Need to reduce costs and make access to data easier But also for companies, that:  Want to know their obligations  Especially when an accounting change is coming WHY XBRL TAXONOMIES?

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Austria Targets: In-house credit risk assessment, collateral within Eurosystem Statistical analysis Information available: 2,500 (individual and consolidated) XBRL plans: Foreseeable use for COREP

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Belgium Targets: Legal mission: collect and process annual accounts of non-financial corporations Information available: 275,000: 100% coverage XBRL works and plans: Filling annual accounts in 2007, with XBRL: 300,000 corporations involved Final version of Belgium taxonomy by end of 2005

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of France Targets: Macro and microeconomic analysis Banking supervision and individual diagnosis Risk assessment and portfolio analysis Information available: Several databases: CBSO (30,000), FIBEN (188,000), Consolidated database (3,500 groups) XBRL plans: Coordination with banking supervision for new reporting documents (Capital Requirements, others)

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Germany Targets: Risk assessment Statistical information Economic analysis Information available: Several databases: individual (105,000), consolidated (25,000 groups). 75% coverage XBRL works and plans: Use of XBRL in data pool of Statistics Department Membership in COREP (Supervision Department)

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Italy Targets: Collection and reprocessing of financial statements Development of methods for corporate analysis Information available: Several databases: individual (45,000), consolidated (800 groups). 47% coverage XBRL plans: Follow developments in Italy

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Portugal Targets: Statistical information Economic analysis Information available: Several databases: annual (18,000 / 58% coverage) and quarterly (3,300 / 41% coverage) XBRL plans: Follow developments in Portugal

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 III WG: CBSO of Spain Targets: Statistical information Economic analysis Information available: Several databases: annual (8,500 / 35%), annual from mercantile registers (450,000 / 12%) and quarterly (1,000 / 15%) XBRL works and plans: Creation of taxonomy for CBSO Other, at Banco de España:  currently receiving data with XBRL from Appraisal companies and commercial banks  COREP project / Anti laundering commission

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 Background III WG of ECCBSO Standard Formats ECCBSO/IASCF Joint XBRL Project AGENDA

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 IFRS-based standard format: strategic plan Use of IFRS-GP XBRL taxonomy Monitoring with real examples (11 listed groups) Creation of an extended version Definition of “essential information”, and creation of a common and reduced format Creation of a taxonomy: work in collaboration with IASCF-XBRL Team Creation of instance documents from real cases (11)

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 Contents of the extended format (R): also in reduced format  General characteristics (R)  Options IAS  Business combinations (R)  Consolidation (R)  Employment (not required by any IFRS) (R)  Balance sheet (R)  Income statement (by function or by nature) (R)  Statement of changes in equity (R)  Cash-flow statement (direct, indirect or indirect alternative) (R)  Notes

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 There is a note for each of the following items: Property, plant and equipment (R) Borrowings and payables Investment property (R) Borrowings movements Intangible assets (R) Income tax Biological assetsDefined benefit post-employment plans Financial assets (R) Equity Current assetsRelated parties Provisions and grants (R) Segment reporting Hedging instruments and riskAssets held for sale

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 ECCBSO Standard Format (B/S):

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 ECCBSO Standard Format (I/C):

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 Background III WG of ECCBSO Standard Formats ECCBSO/IASCF Joint XBRL Project AGENDA

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 XBRL SHOWCASE

REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS 12th XBRL International Conference 8th November 2005 THANK YOU FOR YOUR ATTENTION Manuel Ortega/Josef Macdonald