REDUCING REPORTING BURDEN ON EUROPEAN CORPORATIONS

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• DO WE HAVE A PROBLEM OF COMMUNICATION?
• YES

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• QUESTION TO COMPANIES
• GORGED WITH STATISTICS, QUESTIONNAIRES AND
  SURVEYS?
• YES
• Cost
• Redundancy

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• QUESTION TO STATISTICIANS, INVESTORS, LENDERS,
  OTHER USERS
• ARE YOU REALLY DISAPPOINTED WITH INFORMATION
  RECEIVED?
• YES
• Cost
• Inadequacy
• Lack of comparability

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• FAITH AND HOPE, TO COMBINE BOTH POLES OF
  COMMUNICATION
• IFRS an option for homogeneization
• XBRL an opportunity for connecting supply and
  demand of information

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• SOME LIMITS AND DANGERS. ABOUT IFRS
• A common accounting system is needed, but
• What will happen with SME?
• Comparability inside countries
• Are IFRS biased towards a group of users
  (investors)?
• Some figures

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• SOME LIMITS AND DANGERS. ABOUT XBRL
• Regulators are becoming prepared for XBRL in
  Europe. Are companies prepared too?
• Easy access? It depends on the integration of the
  information in companies
• TWO NEEDS
• Continue with standard formats until XBRL is
  sufficiently used by corporations
• Involve IT corporations, which develop accounting
  software for SME, in order to assure a rapid use
  of XBRL

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• WHY STANDARD FORMATS / XBRL TAXONOMIES?
• Good for users, that
• Profits on comparability
• Reduce costs and make access to data easier
• But also for companies, that
• They want to know their obligations
• Especially when an accounting change is
  approaching
• Best way to introduce IFRS in Europe
• It means a reduction on reporting burden (several
  users can reach an agreement on the format or on
  the taxonomy)

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• EUROPEAN COMMITTEE OF CENTRAL BALANCE SHEET DATA
  OFFICES (ECCBSO)
• Infomal club of CBSO belonging to NIS and NCB
• Experience using accounting data for several
  purposes some figures
• Banque de France 4.008 groups, 214.913 companies
  (74 coverage of employment in 2002)
• Banque de Belgique/Nationale Bank van België
  276.543 annual accounts (100 coverage in 2002)
• Banco de Portugal 3.631 quarterly accounts
  (45,4 coverage in 2002)
• Banco de España 209.007 annual accounts (45
  coverage in 2002)
• Experience facing the problem of harmonization
  BACH database

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• III WG OF THE ECCBSO
• Targets
• Monitor and report to the ECCBSO on IFRS
  implementation process
• Analyze the foreseeable impact on databases and
  system of analysis
• Creation of an IFRS-based format

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• IFRS-BASED STANDARD FORMAT STRATEGIC PLAN
• Use of XBRL-IASCF taxonomy (July 2003)
• Monitoring with real examples (13 listed groups)
• Methodological note first draft finished
• Definition of essential information
• Reduction of the format to a common and essential
  format

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• IFRS-based standard format characteristics
• Great level of detail, to allow subsequent
  reduction
• Each item provides IFRS reference and XBRL tag
  available
• Employment, even though not asked for in IFRS
• Presentation principles
• Use of net values
• Non current / current presentation of balance
  sheet
• Income statement by nature / by function
• Statement of cash-flow (both methods)

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• Contents of the extended format
• General characteristics
• Options IAS
• Business combinations
• Consolidation
• Employment (not required by any IFRS)
• Balance sheet
• Income statement (by function or by nature)
• Statement of changes in equity
• Cash-flow statement (direct, indirect or indirect
  alternative)
• Notes

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• There is a note for each of the following items
• Property, plant and equipment Borrowings and
  payables
• Investment property Borrowings movements
• Intangible assets Income tax
• Biological assets Defined benefit
  post-employment plans
• Financial assets Equity
• Current assets Related parties
• Provisions and grants Segment reporting
• Hedging instruments and risk Assets held for
  sale

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS
Standard formats and IASCF-XBRL taxonomy
An experience from ECCBSO

• BEFORE THE PRESENTATION OF THE FORMAT AND ITS
  TAXONOMY EXAMPLE
• THREE DEMANDS
• It is convenient that IASB approves and updates
  the IASCF-XBRL taxonomy at the same pace IASB
  introduces changes
• If SME standards are developed by IASB, all
  users needs should be taken into account
• HOW AND WHEN Asking for a more accessible
  channel (XBRL) to annual accounts is a fair
  demand. But
• While XBRL is not used by SME, need of standard
  formats will remain.
• Why not asking for an early access, that is to
  say, an early deposit of the accounts?

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The ECCBSO Standard formatExample

• Prepared with contributions of Banque Nationale
  de Belgique / Nationale Bank van België

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS

• ECCBSO Standard Format

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REDUCING REPORTING BURDEN ON EUROPEAN
CORPORATIONS

• ECCBSO Standard Format

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General presentation
IFRS Taxonomy
ifrs-gp-2004-06-15.xsd
ifrs-gp-2004-06-15-label.xml
Extension
ifrs-gp-2004-06-15-WGIII.xsd
Presentation Link
ifrs-gp-2004-06-15-WGIII-presentation.xml
WGIII Taxonomy
Label Link
ifrs-gp-2004-06-15-WGIII-label.xml
Instance document
Company-2003-12-31.xml
Stylesheet
Company-2003-12-31.html
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Taxonomy - Extension
Extension Element list
DTS
Element attribute
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Taxonomy - Presentation Link
Presentation tree
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Instance document
Data
Contexts
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Stylesheet
Excel sheet
Stylesheet
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