FINREP translations Derek De Brandt, XBRL EuropeFebruary 2013

Explain the XBRL Case: translating the FINREP taxonomy

1. Background to the COREP case (slide 4-6)2. Background to the FINREP case (slide 7-10)3. FINREP, December 2012 (slide 11-17)

- Input from the draft FINREP XBRL taxonomy- Result with language pairs (en-de-nl)- Visualisation back and from the XBRL taxonomy

Objective of this presentation

The COREP / FINREP XBRL case has external dependencies:- Release of the XBRL taxonomies by EBA (1 for COREP, 1 for FINREP)- Translation of the underlying Directives by Europe

February 2013:- Monnet is technically capable to translate both COREP and FINREP- FINREP draft taxonomy available since December 2012- First taxonomy translation case: FINREP in German

Next steps:FINREP and COREP translation is further picked up by XBRL Europe and

the Eurofiling community with MT, as soon as Taxonomies and translation base are available.

General comments

COREP BackgroundBasel - CRD

Directives 2006/48/EC and 2006/49/EC = Capital Requirements Directive (CRD) Directives 2009/27/EC, 2009/83/EC and 2009/111/EC amendments = CRD IITranscription of BIS Basel II Guidelines

REGULATORY REQUIREMENTS

REGULATORY TEMPLATESGuidelines on Common Reporting and Financial Reporting

COREP/FINREP TAXONOMIESCOREP Taxonomy V1.3.0 (2010-01-06) + 2012 Release (Draft 2010-07-20)

COREP Background COREP 1.3.0

CAPITAL ADEQUACY RATIO

CREDIT RISK CR

MARKET RISK MKR

OPERATIONAL RISK OR

7

6

3

2Own Funds

CR SA, SEC SACR IRB, EQU IRB, SEC IRBCR SEC Details, CR TB SETT

MKR SA TDI, SA EQU, SA FX, SA COMMKR IM, IM Details

OR OPR, OPR Loss, OPR Loss Details

CA, GROUP Solvency Details CACapital AdequacyGroup Solvency Details

CRCredit Risk, Standard ApproachSecuritizations, Standard ApproachCredit Risk, Internal Rating Based Ap.Securitizations, Internal Rating Based Ap.Securitizations, DetailsTrading Book Settlement Risk

OROperational RiskOperational Risk, Gross LossesOperational Risk, Major Losses

MKRMarket Risk, Standard Approach- Traded Debt Instruments- Equities- Foreign Exchange- CommoditiesMarket Risk, Internal ModelsInternal Models, Details

COREP BackgroundCOREP Templates

CRD TRANSLATED IN VARIOUS LANGUAGES

FINREP BackgroundIFRS and Regulatory Reporting

Transcription of IAS/IFRS from IASCF Publications REGULATORY REQUIREMENTS

REGULATORY TEMPLATESGL06 CEBS Revised Guidelines on Financial Reporting 15 December 2009

FINREP TAXONOMYFINREP Taxonomy V1.3.1 (2009-07-16) + 2012 Release (Draft 2010-05-12)

FINREP BackgroundFINREP 1.3.1

Assets

Liabilities

Capital + MI

BS (FIN1)

ZOOM

Details BS (FIN319)

IS (FIN2)

ZOOM

Details IS (FIN2029)

Annexes (FIN30+)

BS = Balance Sheet

IS = Income Statement

FINREP BackgroundFINREP templates

REFERENCES TO IAS/IFRS AVAILABLE IN MANY

LANGUAGES

COREP & FINREP Requirements

ANDREASTHE REGULATOR

Having COREP and/or FINREP frameworks available in other languages will significantly increase cross-Europe adoption and enhance transparency- Translation requirements similar to the IFRS translator- Additional requirements on translating the templates- Additional requirements on translating the documentation : data model, architecture, etc.

Both frameworks consist in a set of material in English, which is subject to translation

• Guidelines and legislation • Templates (presentation layer)

• XBRL Taxonomy set and corresponding documentation

FINREP, DRAFT XBRL TAXONOMYDecember 2012

Step 1: from CRD regulation and IFRS standards to templatesStep 2: from templates to XBRL Taxonomy

- templates contain text labels- templates contain references to IFRSs and regulation

Step 3: from XBRL Taxonomy to ontologyStep 4: automatically translate with Monnet Translation techniquesStep 5: enrich XBRL Taxonomy with translated labelsStep 6: automatically render templates from Taxonomy in new

language

Table 3 - Impairment of debt instruments PL: PL/ Measured at amortised cost

≤ 90 days > 90 days ≤ 180days

> 180 days ≤ 1year

> 1year

IAS 39 AG 84-92; IFRS

7.37 (b)

IAS 39 AG 84-92

IAS 39 AG 84-92 IFRS 7.37 (c)

IAS 39.58-70

1 2 3 4 5 6 7 8 9 10 11 12Debt securities 1

Central banks 2General governments 3Credit institutions 4Other financial corporations 5Corporates 6

Loans 7Central banks 8General governments 9Credit institutions 10Other financial corporations 11Non-financial corporations, Corporates 12Non-financial corporations, Retail 13Households, Corporates 14Households, Retail 15

Total IFRS 7.37 16

IFRS 7.37 (a); IG 26-28

Col lective allowances for incurred

but not reported

losses

Col lateral and other

credit enhancements received as security

for the related

impaired and past

due assets

Impaired [net

carrying amount]

Carrying amount

Unimpaired

Past due but not impaired

Impaired [gross

carrying amount]

Specific allowances

for individual ly

assessed financial

assets

Specific al lowances

for col lectively

assessed financial

assets

Step 1: from regulation to templates

Transcription of IAS/IFRS from IASCF Publications REGULATORY REQUIREMENTS

Table 1 - Statement of financial positionCarrying amount

1Assets

Cash 1 IAS 7.6-7, 45Loans 2Debt securities held 3

Measured at fair value through profit or loss 4 IFRS 7.8 a (i )Measured at amortised cost 5 IFRS 7.8 (f)

Equity instruments held 6Derivatives 7

Measured at fair value through profit or loss 8 IFRS 7.8 (a) (i)Hedge accounting 9 IFRS 7.22 (b); IAS 39.9

Fair value hedges 10 IFRS 7.22 (b); IAS 39.86 (a)Cash flow hedges 11 IFRS 7.22 (b); IAS 39.86 (b)Hedges of net investments in foreign operations 12 IFRS 7.22 (b); IAS 39.86 (c)Portfolio hedges 13

Tangible assets 14 CPProperty, plant and equipment 15 IAS 16.6; IAS 1.54 (a)Investment property 16 IAS 40.5; IAS 1.54 (b)

Intangible assets 17 IAS 1.54 (c)Goodwi ll 18 IFRS 3.B67 (d)Other intangible assets 19 IAS 38.8,118

Investments in entities accounted for using the equity method 20 IAS 1.54 (e)Tax assets 21 IAS 1.54 (n-o)Assets under insurance and reinsurance contracts 22 IFRS 4.IG20.(b)-(c)Other assets 23 CPNon-current assets and disposal groups classified as held for sale 24 IAS 1.54 (j); IFRS 5.38Total assets 25 IAS 1.9 (a), IG 6

LiabilitiesDeposits 25 ECB/2008/32 Annex 2 part 2.9

Current account and overnight 26 ECB/2008/32 Annex 2 part 2.9.1Deposits with agreed maturity 27 ECB/2008/32 Annex 2 part 2.9.2Redeemable at notice 28 ECB/2008/32 Annex 2 part 2.9.3Repurchase agreements 29 ECB/2008/32 Annex 2 part 2.9.4

Debt securities issued 30Measured at fair value through profit or loss 31Measured at amortised cost 32

Table 4 - DerivativesAT: AT/ Notional amount

Assets Liabil itiesType of risk: Type of product 1 2 3

OTC 1Organized market 2of which: economic hedges 3OTC 4Organized market 5of which: economic hedges 6OTC 7Organized market 8of which: economic hedges 9

10of which: economic hedges 11

12of which: economic hedges 13

14of which: economic hedges 15

IAS 39.9, AG 15 (a) 16of which: OTC - credit institutions 17of which: OTC - other financial corporations 18of which: OTC - rest 19OTC 20Organized market 21OTC 22Organized market 23OTC 24Organized market 25

AT: AT/ Carrying amountCarrying amount

Credit

Commodity

Other

Total measured at fair value through

profit or loss

Interest rate

Notional amount

Interest rate

Equity

Foreign exchange

Equity

Foreign exchange

Table 5 - Assets by counterparty residence and currency

EUR Other than EUR EUR Other than EUR1 2 3 4 5 6 7

Loans 1of which: Non-financial corporations 2of which: Households 3

Debt securities held 4Equity instruments held 5Derivatives 6Other assets 7Total assets 8

EMU Other than EMU in EU

TotalEU

Other than EU

Table 6 - Details on certain loans

EMU Other than EMU1 2

Loanswith original maturity > 1 year

with remaining maturi ty ≤ 1 yearto non-financial corporations 1to households 2

with remaining maturi ty > 1 and revision of interest rate over the next 12 monthsto non-financial corporations 3to households 4

with original maturity > 2 years with remaining maturi ty ≤ 2 years

to non-financial corporations 5to households 6

with remaining maturi ty > 2 years and review the interest rate over the next 24 monthsto non-financial corporations 7to households 8

Table 7 - Tangible and intangible assets subject to operating lease

Carrying amount1

Property plant and equipment IAS 16.6; IAS 1.54 (a) 1revaluation model IAS 17.49; IAS 16.31, 73 (a) (d) 2cost model IAS 17.49; IAS 16.30, 73 (a) (d) 3

Investment property IAS 40.IN5; IAS 1.54 (b) 4fai r value model IAS 17.49; IAS 40.33-55, 76 5cost model IAS 17.49; IAS 40.56,79 ( c) 6

Other intangible assets IAS 38.8, 118 7revaluation model IAS 17.49; IAS 38.75-87, 124 (a) (i i) 8cost model IAS 17.49; IAS 38.74 9

The European regulator defines the templates representing the information which will be required to be reported by regulated entities. Templates are only available in English.

Table 3 - Impairment of debt instruments PL: PL/ Measured at amortised cost

≤ 90 days > 90 days ≤ 180days

> 180 days ≤ 1year

> 1year

IAS 39 AG 84-92; IFRS

7.37 (b)

IAS 39 AG 84-92

IAS 39 AG 84-92 IFRS 7.37 (c)

IAS 39.58-70

1 2 3 4 5 6 7 8 9 10 11 12Debt securities 1

Central banks 2General governments 3Credit institutions 4Other financial corporations 5Corporates 6

Loans 7Central banks 8General governments 9Credit institutions 10Other financial corporations 11Non-financial corporations, Corporates 12Non-financial corporations, Retai l 13Households, Corporates 14Households, Retai l 15

Total IFRS 7.37 16

IFRS 7.37 (a); IG 26-28

Collective allowances for incurred

but not reported

losses

Col lateral and other

credit enhancements received as security

for the related

impaired and past

due assets

Impaired [net

carrying amount]

Carrying amount

Unimpaired

Past due but not impaired

Impaired [gross

carrying amount]

Specific allowances

for individually

assessed financial

assets

Specific allowances

for col lectively

assessed financial

assets

Step 2: from templates to XBRL taxonomy

Table 1 - Statement of financial positionCarrying amount

1Assets

Cash 1 IAS 7.6-7, 45Loans 2Debt securities held 3

Measured at fair value through profit or loss 4 IFRS 7.8 a (i)Measured at amortised cost 5 IFRS 7.8 (f)

Equity instruments held 6Derivatives 7

Measured at fair value through profit or loss 8 IFRS 7.8 (a) (i)Hedge accounting 9 IFRS 7.22 (b); IAS 39.9

Fair value hedges 10 IFRS 7.22 (b); IAS 39.86 (a)Cash flow hedges 11 IFRS 7.22 (b); IAS 39.86 (b)Hedges of net investments in foreign operations 12 IFRS 7.22 (b); IAS 39.86 (c)Portfolio hedges 13

Tangible assets 14 CPProperty, plant and equipment 15 IAS 16.6; IAS 1.54 (a)Investment property 16 IAS 40.5; IAS 1.54 (b)

Intangible assets 17 IAS 1.54 (c)Goodwill 18 IFRS 3.B67 (d)Other intangible assets 19 IAS 38.8,118

Investments in entities accounted for using the equity method 20 IAS 1.54 (e)Tax assets 21 IAS 1.54 (n-o)Assets under insurance and reinsurance contracts 22 IFRS 4.IG20.(b)-(c)Other assets 23 CPNon-current assets and disposal groups classified as held for sale 24 IAS 1.54 (j); IFRS 5.38Total assets 25 IAS 1.9 (a), IG 6

LiabilitiesDeposits 25 ECB/2008/32 Annex 2 part 2.9

Current account and overnight 26 ECB/2008/32 Annex 2 part 2.9.1Deposits with agreed maturity 27 ECB/2008/32 Annex 2 part 2.9.2Redeemable at notice 28 ECB/2008/32 Annex 2 part 2.9.3Repurchase agreements 29 ECB/2008/32 Annex 2 part 2.9.4

Debt securities issued 30Measured at fair value through profit or loss 31Measured at amortised cost 32

Table 4 - DerivativesAT: AT/ Notional amount

Assets LiabilitiesType of risk: Type of product 1 2 3

OTC 1Organized market 2of which: economic hedges 3OTC 4Organized market 5of which: economic hedges 6OTC 7Organized market 8of which: economic hedges 9

10of which: economic hedges 11

12of which: economic hedges 13

14of which: economic hedges 15

IAS 39.9, AG 15 (a) 16of which: OTC - credit institutions 17of which: OTC - other financial corporations 18of which: OTC - rest 19OTC 20Organized market 21OTC 22Organized market 23OTC 24Organized market 25

AT: AT/ Carrying amountCarrying amount

Credit

Commodity

Other

Total measured at fair value through

profit or loss

Interest rate

Notional amount

Interest rate

Equity

Foreign exchange

Equity

Foreign exchange

Table 5 - Assets by counterparty residence and currency

EUR Other than EUR EUR Other than EUR1 2 3 4 5 6 7

Loans 1of which: Non-financial corporations 2of which: Households 3

Debt securities held 4Equity instruments held 5Derivatives 6Other assets 7Total assets 8

EMU Other than EMU in EU

TotalEU

Other than EU

Table 6 - Details on certain loans

EMU Other than EMU1 2

Loanswith original maturity > 1 year

with remaining maturity ≤ 1 yearto non-financial corporations 1to households 2

with remaining maturity > 1 and revision of interest rate over the next 12 monthsto non-financial corporations 3to households 4

with original maturity > 2 years with remaining maturity ≤ 2 years

to non-financial corporations 5to households 6

with remaining maturity > 2 years and review the interest rate over the next 24 monthsto non-financial corporations 7to households 8

Table 7 - Tangible and intangible assets subject to operating lease

Carrying amount1

Property plant and equipment IAS 16.6; IAS 1.54 (a) 1revaluation model IAS 17.49; IAS 16.31, 73 (a) (d) 2cost model IAS 17.49; IAS 16.30, 73 (a) (d) 3

Investment property IAS 40.IN5; IAS 1.54 (b) 4fair value model IAS 17.49; IAS 40.33-55, 76 5cost model IAS 17.49; IAS 40.56,79 ( c) 6

Other intangible assets IAS 38.8, 118 7revaluation model IAS 17.49; IAS 38.75-87, 124 (a) (i i) 8cost model IAS 17.49; IAS 38.74 9

FINREP XBRL TAXONOMY

DATA MODELLINGFOR XBRL TAXONOMY CREATION

The templates are analysed and converted in a dimensional datamodel, as preparation to the XBRL taxonomy, with only English labels.

Step 3: from XBRL Taxonomy to ontology

FINREP XBRL TAXONOMY

Monnet turtle format

XBRL format(label, XML linkbase)

The English label sets are transformed from the XBRL Taxonomy into the Monnet turtle format.

MT

Step 4: translate with MT

Automatic handling of turtle by MT

Step 5: enrich taxonomy with translations

FINREP XBRL TAXONOMY** TRANSLATED VERSION

Monnet turtle format

XBRL format(label, XML linkbase)

Integration of translated labels into the XBRL taxonomy

Step 6: automatic rendering of tables

FINREP XBRL TAXONOMY** TRANSLATED VERSION

XBRL tools automatically display tables in the selected label language role from the translated taxonomy