Status XBRL Netherlands

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Status XBRL Netherlands

• Yesterdays investment, tomorrows profit ?

Belgrade, 18-1-2008 Matthieu van Bommel, Product
Manager Trade Register
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Agenda

• Introduction
• History
• Benefits of Taxonomy and XBRL
• XBRL environment
• XBRL process Chamber of Commerce
• Annual account products
• Why do things take longer than expected
• Focus for 2008
• Long term plans
• Lessons learned

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History I

• 5/2004 Start Dutch Taxonomy project
• Ministry of Finance and Ministry of Justice give
  the order to form a project to set up the Dutch
  taxonomy in order to reduce the administrative
  burden for companies. They also provide funding
  for this project.
• Create a partnership with parties that request
  financial reports
• Chamber of commerce (Annual accounts,550.000
  annually)
• Tax Office (Corporation taxes, Income Tax, VAT)
• Bureau of Statistics (surveys on production and
  trade)
• This partnership is an important key to success,
  with the inland revenue as the main player
  because of high volumes

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History II

• 12/2005 Proof of Concept Chamber of Commerce
  Netherlands
• 6/2006 Pact with public and private sector
• Use of XBRL
• Software vendors, accountants, public sector
• Profits for accountancy returned to companies
• 9/2006 Release Dutch Taxonomy 1.0
• 1/2007 Official launch of XBRL
• Generic Infrastructure open for receiving and
  distributing
• XBRL is an officially recognised method of filing
• Back offices Tax office, Bureau of Statistics
  and Chamber of Commerce XBRL enabled
• First Annual account filed in XBRL
• 12/2007 Release Dutch Taxonomy 2.0
• Introduction of small annual report (easy to use)

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How a taxonomy reduces administrative burdens

• For companies
• Store once, report / comply to many
• Financial statements can be rendered in various
  formats,
• based on the users request
• Fast up-to-date information available
• Easier to report on corporate companies with many
• subsidiaries
• Enables less costly information for credit
  request purposes
• Enhanced distribution and useability of existing
  information
• (less re-keying of financial information)

• For the Chamber of Commerce
• Less handling costs (filing, scanning)
• Improved Quality of data (standards,
  verification)
• Enables cross-sectional analysis
• Chances for new information products

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XBRL environment
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XBRL process Chamber of Commerce

Delivery Webservice
Validation
XBRL
Transform XBRL to PDF
Basic information Annual Account
XBRL Instance
Imaging Database
Business Register
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Annual account Paper
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Annual account Standard
This product is created by re-keying data
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Annual account XBRL
This is the presentation of the XBRL instance in
PDF -automated process-
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Why do things take longer than expected?

• The advantages of XBRL are not yet in the
  mindset of
• business managers
• Auditors, Accountants and other intermediaries
  have to
• do extra work in their back offices
• Versioning and releaseplanning of taxonomies
  must be
• improved
• The tax office started production a year later
• The infrastructure is subject of discussion
  between two
• government agencies
• Law needs change but this does not get enough
  priority
• Software developers and intermediaries dont
  give high
• priority to XBRL enabling of their systems

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Focus for 2008

• Optimize service to accountants and software
  developers
• Moving infrastructure from project to national
  government
• Enabling more types of messages (Tax Domain)
• Improvement of taxonomy (authentication,
  security)
• Harmonisation of commercial and fiscal reports
  (change law)
• Create extension in taxonomy for banking
  requirements
• Better control of new taxonomy releases
• Increase volumes

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Long term plans

• Auditors report for medium and large companies
• New functionality of taxonomy
• Formula link base, dimensions
• Create new information products based on XBRL
• Stop re-keying financial accounts into standard
  database
• Provide tailor made information
• Business information based on cross-sectional
  analysis

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Lessons learned

• Treat it as a journey, it will take 3 or more
  years to achieve
• Yesterday's investment (2005 2008)
• Implementation nationwide will take at least
  another year
• Tomorrow's profits (2009 or later)
• New technology is not only ICT, mainly changing
  business
• Software vendors and intermediary need active
  support to realise mapping
• Software vendors for XBRL validation and mapping
  are also still learning and discussing their
  business models
• Test instances and XBRL tools are not widely
  available
• This makes XBRL not easy to use
• Little influence on the adoption of new reporting
  tools
• Our information and service are important to help
  this process

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Questions