1. Adopting XBRL in the Financial Statements Data Pool of Deutsche Bundesbank Dominik Elgg Deutsche Bundesbank Statistics Department

2. Contents  I. The Financial Statements Data Pool  1. The project  2. Benefits from pool  3. Considered data and benchmark statistics  4. Participation and status  II. XBRL as data format  1. Information chain  2. Issues and problems - Solution through XBRL  3. Special requirements and examples  4. Status and outlook  III. Advantages and challenges from a technical and programming perspective.

3. I.Financial Statements Data Pool The project  Joint project of Bundesbank and German financial institutes  Idea: Pool of financial statements which is filled by several contributors  Project rests upon the principles:  Voluntary participation  Reciprocity  Data protection (anonymous data)  Low costs for participants.

4. Benefits from pool  Participants: extensive benchmark statistics (ratios)  Advantage of enlarged dataset  Bundesbank: continuation and extension of corporate financial statements statistics  Dataset is basis for micro- and macroeconomic analyses  Providing information (statistics) to the public  Compensation for reduction of Bundesbank‘s own dataset.

5. Considered data  Financial statements of German companies:  Only individual accounts (no consolidated accounts so far)  Basically data on income statement and balance sheet  Non-financial companies  Only based on German Commercial Code.

6. Benchmark statistics (financial ratios and differentiation)  More than 180 ratios  Preparation by sector, size, legal form, region and year  Differentiation as far as data protection allows  Quartiles as statistical parameters  Quarterly update of the statistic  Calculation of ratios for nearly 70.000 groups per year.

7. Example

8. Participation  Banks  Credit insurers  Datev  Other institutes with considerable datasets  Bundesbank  Current participation: 9.

9. Current status  Database started 4th quarter 2003  125.000 financial statements per year (gross)  Deduction of duplicates  Deduction of deficient data  More than 85.000 financial statements per year (net)  Shipment of 4 benchmark statistics so far.

10. II. XBRL as data format  Two different possibilities for sending data to Bundesbank:  XBRL  Alternative: plain text format.

11. Information chain POOL Financial statement BundesbankPartner Banks Credit insurers etc. Financial statements of German non-financial companies Statistics Database Ratios Cash Flow Profitability Leverage...... by legal form... by sector... by size... by region... by year XBRL

12. Issues and problems  Participating institutes have different recording systems  Partners have different guidelines for keying data into the recording system  Bias in the data  Problems in the identification process of duplicates.

13. Why XBRL?  Standardised, non-proprietary format for exchanging financial statements data  Data which comes directly from companies is qualitatively better than data that is manually keyed in into the recording system  In the long-term XBRL might lead to the same data scheme and guidelines, as a basis for analysing financial statements.  Scheme of pool dataset (relational database) is based on German taxonomy.

14. The issue of data quality - examples  Several data sources with different data quality  Strict quality checks  About 10% loss of data in historic data due to big errors, maximum of 5% in actual data  Thousands of minor errors  With the XBRL test data we received so far: 0 errors.

15. Specific requirements on data format  Anonymous data (data protection)  Separation of characteristics (e.g. legal form) from accounting entries (data protection)  Add-on items not represented in taxonomy  Creation of an extended XML/XBRL framework while keeping the advantages of XBRL.

16. <xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd"> ABC S.A 2000-01-01 2000-12-31 ISO4217:EUR 11000000 8000000 2000000... 11000000 3000000 7000000... Example XBRL Instance Document

17. <xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd"> ABC AG 2000-01-01 2000-12-31 ISO4217:EUR 11000000 8000000 2000000... 11000000 3000000 7000000... Accounting entries

18. <xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd"> ABC AG 2000-01-01 2000-12-31 ISO4217:EUR 11000000 8000000 2000000... 11000000 3000000 7000000... Context

19. - h e g DEM - 3,1/3 - 2000-01-01 2000-12-31 - ISO4217:DEM 1338066 0 749385 259760 Extended XML/XBRL framework (accounting entries)

20. Status of XBRL project in data pool  Implementation completed  Successful tests with test data and authentic data  As the first partner, Datev will send XBRL data from this quarter on.

21. III. Advantages and challenges Pros and Cons from a programming perspective:  Possible validation on sender side  Flexibility of XML  Lower effort of programming  Minor error rate  XBRL as non-proprietary format  Current ‘Hybrid‘ format  Some familiarisation with XBRL/XML  Dependency on external XBRL-specification  File size.

22. Advantages from an accounting perspective  Structured data instead of paper or PDF’s  Non-proprietary standard  Separation of content from presentation  Flexibility: taxonomies can be created individually  Independent of information type (e.g. accounting standard)  XML as basis is rather easy to understand  Knowledge transfer: taxonomies can be created together (e.g. 1001 working groups filled by auditors, data receivers, software companies).

23. Challenges from an accounting perspective  Dependency on an independent organisation (e.g. enduring specification)  [Dependency on software (companies)]  Sender has to be convinced of using XBRL.

24. Outlook  Integration of IFRS financial statements:  Relevant for individual accounts from 2005 on (2006).  Potential integration of consolidated accounts  Use of IFRS (and SME-IFRS) taxonomy  Use of results of III WG on IFRS impact and CBSO databases (group of Manuel Ortega - Banco de España)  Use of potential extensions of German jurisdiction.

25. Vision for the next 5 to 10 years  XBRL is used by all participants: sending and receiving  10.000 to 20.000 financial statements of German companies based on SME-IFRS that can be compared to their European counterpart.

26. ??? Questions & Answers !!!

27. Contact information Dominik Elgg DEUTSCHE BUNDESBANK Financial Statements Data Pool Statistics Department Tel. +49 69 9566 8589 Email: dominik.elgg@bundesbank.de

28. <end> Thank you very much! </end>