“The importance of versioning for the European COREP/FINREP taxonomy projects” December 5, 2007...
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Transcript of “The importance of versioning for the European COREP/FINREP taxonomy projects” December 5, 2007...
“The importance of versioning for the European COREP/FINREP taxonomy
projects”December 5, 2007
Vancouver, British Columbia, Canada
Background
While national supervisory authorities are free to decide on the technical transmission specifications to implement the reporting framework, CEBS considers that XBRL can be a helpful tool in constructing a harmonised European reporting mechanism.
CEBS will therefore develop an XBRL platform and make it available free of charge to national authorities and supervised institutions. XBRL taxonomies will be developed for both the COREP (COmmon REPorting -Basel II-) and FINREP (FINancial REPorting -IFRS-) frameworks.”
Point 4, Cover Note to the Framework for Common Reporting of the New Solvency Ratio
Flexibility Principle
Basel II, IAS/IFRS …
EC 2006/48 & 49 …
Country 1
Sup. 1
Report 2Report 1
------------------------------------
Country 3Country 2 Country 27
NCB 2 FSA 3 Sup. 27
Report 27
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Report 3
----------------------------------------------------------------------------------------------------------------------------------------------------------------
National Regulation
Transposition into national Legislation
European Law9X,XX% best practices + EU requirements
National Implementation
XBRL challenge!
Global best practices
CEBS
CEBS XBRL EU: implementation model
Bank
Bank Management
OperationsCounterparties
Collateral…
Report
------------------------------
Supervisor
IS Supervisory
ReportsOther data
……
Presentation, Analysis…
Bank operations, controls….
Basel IIIFRS
to XBRL
from XBRL
Basel IIIFRS
Report
------------------------------
File Transfer (National)
XBRL (Europe)
XBRL (National)
ErrorsErrors
Internet
XBRL National implementation
XBRL Europe
Basel IIIFRS
Basel IIIFRS
Didactic model for explanatory purposes only
European adoption
XBRL (optional or XBRL (optional or
compulsory)compulsory)•BelgiumBelgium•CyprusCyprus•DenmarkDenmark•FranceFrance•FinlandFinland•GermanyGermany•ItalyItaly•LithuaniaLithuania•Luxemburg Luxemburg •NetherlandsNetherlands•Norway, Norway, •PolandPoland•SpainSpain
Definitely Other FormatDefinitely Other Format
Austria, Czech, Austria, Czech,
Denmark, Eesti, Denmark, Eesti,
Latvia, Portugal, Latvia, Portugal,
Slovak, Sweden, UKSlovak, Sweden, UK
Interested in XBRLInterested in XBRL
Hungary, Estonia, Hungary, Estonia,
Greece, Lithuania, Greece, Lithuania,
Bulgaria, Italy Bulgaria, Italy
No informationNo information
•Source: www.c-ebs.org Source: www.c-ebs.org
IT standards on filing among European Banking Supervisors
XBRL COREP Taxonomy FINREP(IFRS) Taxonomy XBRL Jurisdiction
Belgium Compulsary Belgian extension of COREP version 1.2.4
Belgian extension of FINREP version 1.2
Provisional
Cyprus Compulsory Version 1.2.3 dated 2007-02-02 SIZE ???
Denmark For the future - XBRL based on the EU taxonomy Provisional
Finland Optional Versio 1.2, perustuu EU-tason taksonomian versioon 1.2.4COREP-Fin-taksonomia 30.04.2007
In construction
France Compulsory COREP Extension Taxonomy 05.02.2007 (Version 1.2)
Taxonomy Version 1.2 Provisional
Germany Optional Taxonomy version 1.2.4 Planned Yes
Greece No No No In construction
Ireland Optional Version 1.2 Taxonomy Version 1.2 Yes
Italy No . In construction
Lithuania Compulsory XBRL 2.1 dimension 1.0 XBRL 2.1 dimension 1.0
Luxemburg compulsory in 2008
Luxembourg XBRL Taxonomy for COREP
Luxembourg XBRL Taxonomy for FINREP
In construction
Netherlands Optional Taxonomy Version 1.2.3 Version 1.2 Yes
Norway Optional Will be 1.2.3 unless a new version is released within first half 2007
In construction
Poland Compulsory Version 1.2 Release 3 Provisional
Spain Compulsory Version 1.2.2 YesSvetlana Shekerdjieva
Project Management
Weekly
Conf.
Call
Y
ahoogroups 3
00+
Workshops:8 editions *
70+ attendees Website, News &
Communication
Core Team:Supervisors
DE, ES, IT, BE, GR + Non Supervisors
Welcome to the Euro-XBRL Banking Supervisors Homepage!
CEBS XBRL Resources
Ownership & Intellectual Property: CEBS Secretariat Ltd, UK
Allocated Budget: 0 €/Year.
Team: Supervisors (Core IT) part time + external support + Basel II & IFRS Supervision experts
Initial advice of Walter Hamscher and Carlie Hoffman
Workshop logistics provided by hosting National Supervisor
CEBS XBRL Reporting Line
Committee of European Banking Supervisors
Expert Group on Financial Information
SubGroup on Reporting
COREP Network
FINREP Network
XBRL Network
Supervisors: Katrin Schmehl, Panagiotis Voulgaris, Mark Creemers, Victor Morilla, Michele Romanelli, Jacobo Varela, Ignacio Boixo +….
Collaborators: Colm O hAonghusa, Javi Mora +….
CEBS Contribution to XBRL community
Dimensions: required for COREP◦ Proposed by Charles Hoffman◦ Main developers: Ignacio Hernández-Ros + Walter Hamscher◦ Test cases, proof of concept tools and three (3) rewriting cycles
of COREP taxonomy, by the CEBS team.
Versioning: Mainly CEBS team plus contract with consultant.
Formulas: Deep involvement of CEBS team, contract in course.
Close relationship with IFRS XBRL Team
XBRL Europe Contribution to CEBS
◦ Best XBRL practices both at European and National level when implementing COREP & FINREP
◦ XBRL Taxonomies acknowledgment
◦ Support on required XBRL Standards
Advocacy at CEBS level: CESR, CEIOPS, ECB, EFRAG…
Background: Kick off meeting for XBRL Europe preparation at IASCF premises in London on 18 September 2007
Modular design of the CEBS taxonomies
template
.XSD
templa
.XSDtemplate
.XSD
templa
.XSDtemplate
.XSD
template
.XSD
..dimension
.XSD
..dimension.XSD
primary.XSD
primary.XSD
c o n s i s t s o f
mapped into
MS Excel XBRL
Extension structure of the COREP Taxonomies
..dimension
.XSD
primary.XSD
template.XSD
imports
COREP Taxonomy Version 1.2
.commonprimary
.XSD
imports
..dimension.XSD
primary.XSD
template.XSD
i m p o r t s i m p o r t s i m p o r t s
Extension structure of the FINREP Taxonomies
.commonprimary
.XSD
..dimension
.XSD
..dimension.XSD
template.XSD
imports
template.XSD
taxonomy.XSD
imports
FINREP Taxonomy Version 1.2
i m p o r t s i m p o r t s
IFRSdated 2006-08-15
Period of changes
taxonomy.XSD
IFRSTaxonomy
.commonprimary.XSD
..dimension.XSD
..dimension.XSD
template.XSD
imports
template.XSD
CEBSTaxonomies
yearly
two years period
flexible
Current obstacles of CEBS taxonomy users The CEBS mission is to provide a common reporting frameworks
for solvency ratio and financial statements in Europe but:◦ The definition of the reporting standards is in the responsibility of the
national legislator.◦ The level of harmonisation depends on their willingness to harmonise.◦ The process of harmonisation will last for some time.
XBRL is useful format to incorporate the different requirements among the European supervisors but:◦ XBRL alone is not able to achieve the aim of harmonisation.◦ XBRL taxonomies can be as good as their underlying framework.
XBRL could support the European financial institutions by providing a standardised way to handle changes and differences between taxonomies.
CEBS versioning requirements
Documentation of the changes / differences between two taxonomies◦ two versions of the COREP or FINREP taxonomies◦ two extension taxonomies based on CEBS taxonomies
Addition of documentation concerning changes change category
Supporting a human readable versioning report
Capturing versioning information during and after the development process of a XBRL taxonomy
Providing a standardised syntax to be processed by XBRL software
Support for mapping processes to adopt changes automatically
Flexibility and extensibility of the versioning report to◦ provide data from a specific point of view◦ add supplementary information and structures
Requirements on XBRL software
DiffingcontainerDiffing
containerDiffing
container
interface
DiffingcontainerDiffing
containerVersioningcontainer
Global support for supply chains and change
managers
Visualise informationAnalyse differences
Add comments,i.e. Spanish vs. German
COREP extension taxonomy
Detect changes / differences
XVS defines all information to be compared between two taxonomy versions.
XVS defines equivalences between concepts, relationships and resources
Diffingcontainer
VWG recommends the use of the XBRL Infoset (a description of the content of a DTS without any references to the XBRL syntax.
XBRL Infoset object model could be integrated in XBRL software that support XBRL versioning.
XBRL Infoset is pending to be approved as Public Working Draft The differences are being defined as “events”.
Analyse and comment changes / differences On basis of the events identified by the
XBRL software supporting XBRL versioning comments and documentation should be able to be added.
Errors as well as business changes should be reflected therefore the changes need a categorisation.
Especially when changes influence the creation of the instance document, a documentation is necessary.
Changes that aren’t relevant should be able to be removed. The versioning result should also support multi-lingual
documentation.
Visualise informationAnalyse differences
Versioning report
Mapping rulesAssignment
Assignment
ActionAction
EventEventEvent
Action
Assignment
Versioning Report
Versioningcontainer
Object model of the versioning reportFrom DTS To DTS
Concept or Resource (A)
Concept or Resource (B)
Corresponds to
Action
Event
Version
Assignment
Differences
Documentation
Documentation
Categories
all defined object are optional, so the versioning report can be reduced to contain only the necessary or project relevant changes
i.e. IFRS changes with no impact on the FINREP taxonomy will not be part of the versioning report
Provisional implementation the syntax of the versioning
report is defined in an XBRL taxonomy
◦ versioning report is an instance document
tuples are used to define the structure
advantages:◦ extensibility◦ well-know syntax◦ the two compared taxonomy
versions aren’t directly linked disadvantages:
◦ real intension of an instance document is a business report
◦ context has no real usage
Criteria for a preferred solution in excess of 8,000 users across Europe have to facilitate
the mapping and remapping that will arise by using any new taxonomy version / change.
the preferred solution is to be based in technology already familiar for users.
adding extra information might be useful for:
◦ Change management on mapping by financial institutions.
◦ Software vendors providing change management tools.
◦ Project teams including value added information on changes.
Easy extensibility while protecting common core is a must
XBRL instance technology as a suitable option.
Versioning on dimensions General requirement: No syntactical changes should be reported! In terms of dimension:
◦ No report of changes that don’t influence the Cartesian product of the hypercubes
◦ No versioning information when the dimensional representation of a concept changed
not all not all
not all
all
Versioning on dimensions General requirement: No syntactical changes should be reported! In terms of dimension:
◦ No report of changes that don’t influence the Cartesian product of the hypercubes
◦ No versioning information when the dimensional representation of a concept changed
allall
all
Versioning on dimensions General requirement: No syntactical changes should be reported! In terms of dimension:
◦ No report of changes that don’t influence the Cartesian product of the hypercubes
◦ No versioning information when the dimensional representation of a concept changed
i
i
i
SalesCanada
SalesSpain
SalesGermany
FROM DTS
i Sales
i Canada
i Spain
i Germany
A
A
A
To DTS
Conclusions CEBS needs to have a workable solution on versioning to increase
the acceptance of the COREP and FINRE taxonomies in Europe.
The current XBRL Versioning Specification
◦ is based on XBRL 2.1.
◦ covers a great amount of the requirements .
◦ provides an extensible as well as reducible versioning report.
A subgroup inside the VWG deals with the development of the XBRL Versioning Specification on Dimensions.
COREP XBRL Network mission: provide versioning files for ◦ (1) each COREP/FINREP version/release, ◦ (2) each new IFRS version as used in FINREP, ◦ (3) each national extension (if possible).
www.c-ebs.org
www.corep.info
www.finrep.info
Ignacio [email protected] / [email protected] +34 618 52 64 34
Katrin [email protected]+49 69 9566 6584
The XBRL Network of the