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©Semansys Technologies
Yacht XBRL ©Semansys Technologies
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Receiving and processing XBRL
Paul Snijders CEO Semansys Technologies Board member XBRL Nederland Founding member XBRL in Europe XBRL
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What we will cover What to expect from receiving and processing XBRL
The basic process Flexibility in process organization Minimizing effort and costs Integration in current systems XBRL
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Target group XBRL is implemented by regulators
A multitude of entities will produce XBRL output Annual reports, credit reports, statistics, general ledger, business information Regulators can use XBRL to automate processes Many other consumers of financial data can benefit from automated receiving and processing of XBRL Banks Venture funds Investment companies Corporates (internal reporting) M&A officers Corporate finance (bench marking) Businesses (peer group comparison, competitor analysis) XBRL
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What do we want Secure transmission and filings
Process technically valid instances Instance quality control and compliance rules Automated processes Storage and archiving XBRL
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Current reporting practice
70 % of reporting in corps. is manual A large German Bank processes statements a year A US Bank can use only 15 data items for risk assessment A Dutch bank can save 30-40M euro by preventing rekeying SME’s financial statements The data filing processing of a regulator can save 50 percent labor costs with XBRL based filings Less than 10 % of spreadsheets have test procedures, 47% have significant errors XBRL
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The basic process with XBRL
Taxonomy creation Accounting rules Validation Regulator Regulator presents the taxonomy You map it to your applications (COA) Validate the results Send to the regulator Receiving and processing Mapping Validation Companies XBRL Report Reporting Taxonomy Area of interest Validation Store Analysis XBRL
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The requirements Reception functionalities XBRL & XML processing
Technical validation XBRL best practices checks (FRTA-FRIS) Additional compliance rules Specific processes Data base storage XBRL
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The business case Current collection and processing practices:
Manual entry and processing is labor intensive and costly Manual process can be error prone and can limit quality and reliability Current process can be time consuming and cause to much delay in processes Automated Integrator processes Hides the complexity of XBRL Efficient collection and processing Cost reduction, no manual process High quality Automated process, early warning system Integration in current systems XBRL
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Components Firewall Reception Compliance Storage Validation Web Mail
XBRL Report Web Mail FTP XBRL Report Reception Signature Authentication Decryption Compliance Existence rules Compliance rules Conditional rules Data quality Storage Database Management Taxonomies Ext. tax’s XBRL data Rules Process Info Logging DB Validation XML Validation XBRL Validation FRTA Validation FRIS Validation XBRL
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Level of validation needs
Business rules Match internal system’s criteria Exception handling Early warning systems Level 3 Compliance Compliance monitoring Data content quality control Prevent Database pollution Level 2 FTRA-FRIS Well formatted XBRL Reduce file errors Ensure good quality XBRL Keep databases clean Level 1 XML-XBRL Any XBRL document File/syntax correctness XBRL 2.1 valid Process good formatted XBRL Level 0 DO NOTHING XBRL from trusted providers Indirect No need to No regulatory role XBRL
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Level of validation Bus. Rules Need for validation depends on the use
High No validation XBRL FRTA-FRIS Completeness Compliance Bus. Rules XML Need for validation depends on the use Low Normal use Technical quality Acceptable data Reliable data Full Compliance XBRL
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Technical validation XML Validation XBRL Validation XBRL Calculation
XML Correctness, Correct schema/namespace references XBRL Validation XBRL 2.1 compliant FRIS Compliance Check on nillable, element-requires, XBRL Calculation Instance values match XBRL calculations Taxonomy Validation: (extension taxonomy) FRTA Compliance Logical judgment of extension taxonomies Is non core taxonomy data allowed? Can we accept custom taxonomies? Does a extension taxonomy have to be FRTA compliant? Do we store extension taxonomy instances in the data base? XBRL
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Compliance checking Compliance rules describe the rules for the content of XBRL data to ensure high quality data. Specific compliance rules per regulator Make compliance rules public Allows preparers to validate instance at the source Based on XBRL formulas Share compliance rules with other regulators Rules to describe the expected XBRL items (cells) of instances Rules describe the expected values of XBRL items (cells) of instances XBRL
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Existence rules Existence rules and Content rules Existence rules
Two types of compliance rules Existence rules and Content rules Existence rules Simple Element A MUST exist Element B CAN NOT exist Conditional Existence rules If Element A exists than Element B MUST exist If Element B does NOT exist than Element C MUST exist Context related existence rules Element C MUST exist in Context 1 Element D CANNOT exist in Context 2 Context related conditional existence rules If Element F exists in Context 1 than Element G MUST exist in Context 2 If Element H does NOT exist in Context 1 than Element X MUST exist in Context 2 XBRL
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Content related rules Content related Simple rules Calculated rules
Value must be (equal, less than, greater than, between) a certain value Calculated rules Element A MUST be (EQ, LT, GT, Between ) constant value XXX Element B (+-/*) Element C MUST be …… Conditional Calculated rules If Element D = X than (+-/*) element E CAN NOT be Y examples: Balance sheet must be in balance If there is loan in the beginning balance than there must be interest paid at the end balance Interest paid at end balance can NOT be greater than 10 percent of loan at beginning balance XBRL
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Call for managed solution
Yacht Call for managed solution Reporting requirements Full XBRL Compliance Regulatory compliance rules Data quality control Compliance Management & Control Single point of control Coordinated control Chance management Object driven, versioning and audit Control Streamline Processes Automation Customizable Reduced development efforts Integration with legacy systems Efficiency XBRL ©Semansys Technologies
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Architecture Process management Regulatory reporting
IFRS/GAAP Accounting Rules Compliance rules External Requirement Regulatory reporting Instances Reporting Dimensions Extension Taxonomies Reporting entities Reception Processing Receiving Compliance rules XBRL data Custom Database Validation Storage Archive Customization Security Monitoring Logging Process management XBRL
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The business case The case Strategy The gains
Manual receiving processes are costly, error prone and time consuming Regulatory flexibility depend on adaptability and swiftness of the data collection processes Automate as many as possible processes is the sure way to sustain efficient implementation and compliance Interactive data is an important instrument in bringing more transparency in the financial market. Over the long run, processes that run on inherently more controllable IT systems instead of manual process can save the organization considerable time and money in the regulatory process as well as in executing day-to-day business The case Strategy The gains XBRL
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XBRL processing implementation
Reporting components to consider Public taxonomies (corporate, local) Company requirements Dimensions (granularity) Compliance rules Legacy systems (charts of accounts) Mapping Centralize configuration & management Individual processes Automated processes XBRL
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The Integrator architecture
Taxonomy Firewall Web Mail FTP Services XBRL Services XBRL Staging Data base XBRL processing XML/XBRL validation FRTA-FRIS validation Taxonomy Processing XBRL Data XBRL Report Taxonomies Dimensions Entities XBRL data Status Stored Procedures XBRL Report Process Mgnt Custom Database Update Manager Advanced Scripting Custom Database Compliance rules Database mapping Business rules manager Database management Company Data Compliance rules Regulator Banks Risk mngt. Analysis DWH Processing Services Repository Process data Business rules Log/Stats XBRL
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Requirements met Capability Managed Solution Control Manage
XBRL (FRTA/FRIS) validation Reception Highly customizable Manage Single source maintenance Automatic processing Centralized configuration Compliance checking Custom business rules Integration Integrate in regulatory Operations Integrate Technology & Applications XBRL
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Integrator a regulatory solution
Compliance Taxonomy based Compliance reporting Audit & Control Improved data quality Completeness Accuracy Sarbanes Oxley Section 302 System Integration Reliability of Internal financial reporting XBRL
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paul.snijders@semansys.com Yacht 24-2-2019 ©Semansys Technologies
XBRL ©Semansys Technologies
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