The Yellow Brick Road of XBRL

1

• The Yellow Brick Road of XBRL
• Adopting the XBRL Data Standard,
• Separating Practice from Theory
• Jon Wisnieski
• November 5, 2003

2
The Setting

• Three federal regulators
• similar but separate requirements and
  responsibilities
• 8,300 banks nationwide
• Quarterly financial data
• Collected, validated, analyzed and distributed
• Cycle that takes 60 days

3
The Business Objectives

• Decrease the time spend
• Decrease the cost of data collection
• Adopt open standards to increase industry
  transparency
• Create a flexible system
• Leverage private sector strengths and
  relationships

4
Essential Elements of the Solution

• Develop a comprehensive data repositoryone
  system of record
• Create an extensible platform, shared by the
  FDIC, OCC and FRB
• Adopt XBRL standards to facilitate the movement
  of data
• End our legacy application approach
• 3rd party hosting of a shared facility
• Re-engineer business processes to leverage
  automation

5
Some Project History

• Collaborated with multiple stakeholders from the
  start
• Interagency discussions
• Industry Roundtables
• Request for Information (RFI)
• Formed interagency Steering Committee
• what was needed, but not the how
• Request for Proposal (August 2002)

6
Todays Picture

• Unisys Corporationdesign, build and maintain
• Aggressive schedule
• Established industry focus groups
• Leveraged industry experts
• XBRL
• Software vendors,
• Industry trade groups

7
Project Status

• Requirements have been defined and documented
• Programming is underway
• Industry-based focus groups have been convened
• First functional pilot anticipated by early 2004
• Implementation and processes by 4th Quarter 2004

8
Bridges We Had to Get Over

• But this is the way we always do it
• Why cant we build it ourselves?
• Who will own/run/pay for this thing?
• XBRL new, risky, why be one of the first?
• Plenty of proposals which was best?
• Exactly what do we want?
• Are we sure we want that?

9
Bends in the Road

• Nailing down the costs, and business case
• Designing, developing and confirming the taxonomy
• Conducting reality checks with major stakeholders
• Adding new resources and bringing them

10
Transition from Concept to Production

• Developed a proof of concept
• Developed a detailed Request for Proposal
• Bid conferences to solicit and answer bidder
  questions, and refine the vision
• Carefully evaluated proposals
• Established comprehensive project team to guide
  the contractors work

11
Early Decisions

• Prove the model
• Take a ten-year view
• Let the industry propose the how
• Let the government specify the what
• Advanced analysis and taxonomy

12
Why the Call Report?

• Foundation data for banks
• 8,300 institutions report quarterly
• Multiple usages
• Data structures are well-documented
• 2,000 data fields
• 1,500 validation edits agreed upon and published
• 500 pages of Instructions
• 25 Schedules
• 2 Call Report Forms

13
Why XBRL?

• Open Standards
• Promotes effective data exchanges
• Lower long-term costs
• Efficiencies,
• Improved data quality
• Timeliness
• Business rule based
• XBRL frameworks are extensible

14
Impact on the Agencies

• A centralized data storage and processing
  facility
• Shared costs and management
• Meta-data published in XBRL format
• Expedited data publication
• Enhanced interagency standards for data quality
• Agreement on what constitutes Quality
• Publishing criteria which banks are accountable

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Impact on the Banks

• Elimination of paper-based report requirements
• Use of a standard meta-data set
• Emphasis on validating data prior to submission
• Internet delivery of data to the repository
• Increased awareness and potential for XBRL

16
Culture Shifts

• Create a shared enterprise
• Emphasize data, not forms
• Shift from proprietary standards to open
  standards
• Move toward electronic exchange model
• Adopt an industry-wide

17
Need for Industry Coordination

• Close coordination with XBRL International
• Active participation from banks
• Early and intensive consultation with
  intermediaries
• Engage in dialogue with industry associations

18
Future Vision for Regulatory Reporting

• Build extensible platforms
• Adopt solutions that are language and platform
  neutral
• Emphasize reuse of data
• Collect it once, use it many times
• Coordinate efforts among regulators
• Expand the use of XML-based standards

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What is the Potential?

• Common data across reporting boundries
• Tax reporters
• SEC filings
• Census
• Compliance reports to regulators
• Straight-through processing
• Communal repository on the net

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Stating the Obvious (our lessons learned)

• Carefully craft and hold the vision
• Human factor
• Accommodate research and development time
• Be selective about what you bite off
• Discuss and define potential risk
• Be ready for disappointments and celebrate
  every step forward

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CDR XBRL Focus Group

• Friday
• 230 til 430
• _at_PwC
• 1420 5th Ave
• Between Pike St. and Union St.

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Questions?