Reducing the Reporting Burden in the Regulatory Environment

The Italian Implementation Experience of  XBRL Electronic Filing

Paola Fumiani -InfoCamere June,

25, 2009

• Italian Business Register: held by the Chamber of Commerce network, on a territorial basis:

• UnionCamere, the Union of the 104 Italian Chambers of Commerce, Industry and Handicraft;

• InfoCamere the IT partner of the Chambers of Commerce

• Hosting of the Italian Business Register; • Storing data on the relevant company’s events: establishment, variations,

winding-up, cancellation• Filing of annual financial statements• 6.000.000 of Businesses are registered • Annual accounts deposit by 1 million companies

Filing of annual accounts into the Business Register

Evolution of global e-filing into the Business Register

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

2000 2001 2002 2003 2004 2005 2006 2007 2008

By CD By Paper By Mail By E-filing PDF Annual Account

Benefits: 25% costs reductions for new company registration, 30% for other register updates

Benefits: 25% costs reductions for new company registration, 30% for other register updates

From transformed XBRL into filed XBRL

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

2.005 2.006 2.007 2.008 2.009

PDF Annual Account Transformed XBRL companies' XBRL filing

available by 2010

YEAR 2006: KICKSTART of XBRL by..

The law has driven several actions

• The tax agency identified the istruments for fighting against tax evasion, avoiding double registrations of financial data

• The accounting application developers have extended the existing packages with XBRL capabilities.

• The BR have set up specific XBRL reporting and filing applications

art. 21 activated through the official publication of a technical decree

art. 21 activated through the official publication of a technical decree

Law 248/2006….art 21..   ’financial data in structured format must be filed into the BR’s repository’…

December 31, 2008: technical decree on the Official Gazzette!

Who will not file XBRL Annual Accounts?

… all entities closing their fiscal year BEFORE 16th february 2009

2009 XBRL mandatory for SMEs

BUT only effective for 10.000 a.a.

2009 XBRL mandatory for SMEs

BUT only effective for 10.000 a.a.

Dealing withtaxonomies’ development and updates

Status of taxonomies:

GAAP Italy Version1.0: PFS published on February 16th 2009

GAAP Italy version 1.1: disclosure noteson development, first tests on July 2009

IFRS for Italy: ………….Italian integrations to be done

• Taxonomies’ availability on the Ministry’s website will drive the compulsory XBRL deposit to the Business Register.

• Updates to the taxonomy don’t require further law provisions

• Taxonomies’ availability on the Ministry’s website will drive the compulsory XBRL deposit to the Business Register.

• Updates to the taxonomy don’t require further law provisions

USERS’ FAQs -1

Who will file XBRL Annual Accounts?

SMEs closing their fiscal year AFTER 16th february 2009 drawing up annual accounts by national GAAP provisions

What will change this year in the Annual Accounts filing procedure?

Business entities will only add the digitally signed XBRL instance document to the Annual Account dossier

How can a company detail extra financial facts not referred in the mandatory taxonomy schema?

Companies needing extra facts definitions are always allowed to add the PDF Annual account to the XBRL instance document

Are the commercial accounting software products compliant with the Italian taxonomy?

Yes, InfoCamere supported the developers with a testing environment, now XBRL documents can be produced “on click”

Beeing “do it yourself” accountants, where can be found free software to produce and render the XBRL document?

Off course… on the web site of the Business Register!

USERS’ FAQs -2

USERS’ FAQs -2b (excel tool sample)

XBRL as part of the Italian approach to simplification and document dematerialization

Acts, as company incorporation and general deeds • will be presented as structured documents (XML files)

• attachments will also be added in PDF/A(archive) format

Annual accounts

• must be in the processable XBRL format

feasible: the tools are all in place (PC + Internet)

The first benefits from XBRL adoption seen by the Business Register

Improuved quality of annual accounts• users can validate XBRL documents before the filing to the register

• the BR back-office removes manual checks

Cost benefits for the Quality Assurance process•cost saving on transition from PDF to XBRL from next 2010

from 2010 (€ 0,60 x 950.000 A.A) = € 570.000

from 2010 (€ 0,60 x 950.000 A.A) = € 570.000

XBRL in the Business Register – investments in new services

SMEs’ questions and Chambers of Commerce answers :

Is it a good investment to open a secondary seat in Verona?

Where can I find new partners for my business ?

SMEs’ questions and Chambers of Commerce answers :

Is it a good investment to open a secondary seat in Verona?

Where can I find new partners for my business ?

BEXT: a running prototype for statistical services

Quelle der Daten: Handelsregister der Handelskammer Bozen

The business register can supply aggregations of Annual accounts by activity code, turnover, legal form on territorial base

The business register can supply aggregations of Annual accounts by activity code, turnover, legal form on territorial base

key accounting ratios comparisonkey accounting ratios comparison

Company positioning & Benchmark Services

Return on Equity

return on equity

return on equity

efficiency ratio

efficiency ratio

Research activity on development Research activity on development

Special thanks to the Italian GAAP members:

Doctor Claudio Bodini – Doctor Giuseppe Scolaro

Doctors in commerce, Accountants and commercial estimators

Professor Luca Erzegovesi – Doctor Davide Panizzolo Department of Computer and Management Sciences (Trento University) .

Salutations from Padova! paola.fumiani@infocamere.it