1. XBRL for IFRS and Extension Taxonomies
Alan Teixeira
General Manager – Standards and Quality Assurance
Institute of Chartered Accountants of New Zealand
May, 2004

2. Session Outline
The core Taxonomies - IFRS and US-GAAP
Extension Taxonomies
Local GAAP
Local regulation
Entity specific extensions

3. What is a Taxonomy?
An XBRL taxonomy is a description and classification system for the contents of financial statements and other business reporting documents. XBRL taxonomies can be regarded as extensions of XML Schema, augmented with written documentation and a number of additional XML Linking (XLink) files. Taxonomies represent up to hundreds of individual business reporting concepts, mathematical and definitional relationships among them, along with text labels in multiple languages, references to authoritative literature, and information about how to display each concept to a user.

4. The Core Taxonomies - IFRS and US-GAAP
There are two dominant GAAPs
IFRS
US-GAAP
They are converging, but not equivalent
The Taxonomies that capture IFRS and US-GAAP present powerful representations of financial reporting data.

5. The Demand for Extensions
Intra-Jurisdictional
Industries
Regulatory Filings
Extra-Jurisdictional
Cross jurisdictional comparisons
Can I compare elements? Which ones?
Convergence to IFRS around the world
Concepts are very common across jurisdictions
Aligning these structures makes sense

6. What is the Extension Process?
FRTA defines it as adding and removing concepts and relations.
Result is a “Taxonomy” that meets a particular need.

8. The completed “stand-alone” Taxonomy created for a specific process.

9. Entity Requirements Entity Requirements NZ-GAAP IFRS-GP NZ-GAAP
Company Elements
IFRS-GP
NZ-GAAP
NZX

10. NZX Appendix 1 extract
IFRS-GP: Income Tax Expense (Income)

11. NZX Appendix 1 extract
NZ-GAAP: Operating Surplus Deficit After Tax

12. NZX Appendix 1 extract
NZX: Operating Surplus (Deficit) Change Percentage

13. Even after IFRS there will be local needs eg. New Zealand
Local GAAP
IFRS is not yet used by many major jurisdictions – there is still a demand for local GAAP
Even after IFRS there will be local needs
eg. New Zealand
Sector neutrality
Local requirements
Unspecified elements
Assets or expenses
The demand for entity specific extensions depends on how comprehensive the core taxonomies are.

14. Regulatory Extensions
Statistics
Company Returns
Stock Exchange
Tax
Monitoring Agencies
There will be many elements common to several regulatory agencies. Hence, one regulatory “extension” in a jurisdiction is achievable.
And regulatory extensions will have common elements across jurisdictions.
The message is that there is the potential to develop accepted international taxonomies in many domains.

15. Entity Specific Extensions
How will all this work?
Taxonomy creation
Taxonomy loading and instance creation
The extension process can be used to build XBRL power into your internal needs
Management reporting
Integration with non-financial reports

16. Summary
A Taxonomy based on a general purpose document will not meet the needs of all users for all uses.
XBRL provides a process for building extensions to core Taxonomies.
Extension taxonomies will be created by intermediaries (such as ICANZ) and the technology will soon make it easier for entities to create their own taxonomies.
We are not yet there but demand is increasing and the ability to supply is increasing.
We may not be far off a critical cost-benefit cross-over point.

17. XBRL for IFRS and Extension Taxonomies
Alan Teixeira
General Manager – Standards and Quality Assurance
Institute of Chartered Accountants of New Zealand
May, 2004