“ 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

XBRLBasel II

IFRS

Report

------------------------------

File Transfer (National)

XBRL (Europe)

XBRL (National)

Errors Errors

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 FormatAustria, Czech, Austria, Czech, Denmark, Eesti, Denmark, Eesti, Latvia, Portugal, Latvia, Portugal, Slovak, Sweden, UKSlovak, Sweden, UK

Interested in XBRLInterested in XBRLHungary, 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 SupervisorsXBRL 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. C

all

Yahoogroups 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 LineCommittee of European Banking Supervisors

Expert Group on Financial InformationSubGroup on Reporting

COREP NetworkFINREP NetworkXBRL 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.XSDprimary

.XSDprimary

.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

containerDiffingcontainer

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 rulesAssignmentAssignment

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 mustXBRL 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.orgwww.corep.infowww.finrep.info

Ignacio [email protected] / [email protected] +34 618 52 64 34Katrin [email protected]+49 69 9566 6584

The XBRL Network of the