Which Taxonomy to Bundle?

1
Which Taxonomy to Bundle?
Mai 18, 2006, Madrid

• Introduction to the IFRS Taxonomy Status
  Indicator

Josef Macdonald IASC Foundation XBRL Practice
Fellow Timo Philipp IASC Foundation XBRL
Team Bartosz Ochocki IASC Foundation XBRL Team
2
Overview

• Issue
• Solution
• Benefits
• Summary
• Demonstration

3
Introduction and Issues

• Long debate at IASC Foundation whether it should
  permit vendors to bundle taxonomies with their
  software
• Conflict among the interests of taxonomy
  developers, user needs and software vendor
  requirements

4
Why do Software Vendors want to bundle
Taxonomies with their Software?

• Advertising purpose proves that software works
  with the taxonomy and its extensions
• Users dont have to download taxonomies
  separately -gt more user friendly
• Leads to more attractive software!

5
Why Taxonomy Developers dont want this?

• Subsequent versions of taxonomies are not
  included in earlier releases of software
• Taxonomy developers have no control over which
  taxonomy is included in a software product
• Users blame taxonomy developers for using old or
  wrong versions. This also reflects badly on the
  taxonomy itself.
• Potential issues with taxonomy developers IP
  policy

6
Overview

• Issue
• Solution
• Benefits
• Summary
• Demonstration

7
Solution of IASC Foundation XBRL Team

• These issues lead to the development of
• the IFRS Taxonomy Status Indicator (I-TSI)
• I-TSI allows the taxonomy developer to indicate
  the location of taxonomies on the web and
  supporting materials like samples, guidelines and
  tools
• I-TSI is an XML file provide at a fixed position
  on the web with a specified format
• I-TSI includes all information given on taxonomy
  summary pages

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I-TSI How it Works
1. Software download I-TSI file placed on the web
Software
2. Process information of I-TSI
3. Download correct taxonomy or link to tools
and guidance materials for taxonomy
9
Two Ways of Implementation

• IASC Foundation XBRL Team has developed two
  solutions
• I-TSI as a stand-alone XML file
• I-TSI embedded in an Feed (like Edgar
  Online use RSS to distribute new XBRL instances)

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What is RSS?

• RSS stands for "Really Simple Syndication
• it's a format for distributing and gathering
  content from sources across the Web, including
  newspapers and magazines
• by using the RSS XML file, users can quickly and
  easily see whenever an update has occurred (e.g.
  IASC Foundation RSS Feed)

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Examples of RSS Feed Reader
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Which Solution is Better?

• I-TSI stand-alone
• only contains information that is useful for
  XBRL applications
• smaller than RSS Version
• - doesnt support normal RSS feed readers

I-TSI as RSS Feed normal RSS Feed Reader can
use it - to process additional information, the
software needs to recognise the RSS I-TSI
extension
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Overview

• Issue
• Solution
• Benefits
• Summary
• Demonstration

14
Benefits

• Software vendors dont have to update their
  products to bundle new taxonomies
• Software vendors can provide taxonomy specific
  materials like guidelines and tools from taxonomy
  developers in their software
• No IP conflict from the taxonomy side
• Taxonomy developers control direction to their
  taxonomies
• User can always have confidence they have chosen
  the right version of the taxonomy
• User is notified immediately when new a taxonomy
  is released
• Implementing I-TSI makes software more
  attractive and more user friendly than merely
  bundling taxonomies. It provides added value.

15
Overview

• Issue
• Solution
• Benefits
• Summary
• Demonstration

16
Summary

• I-TSI solves the conflict between taxonomy
  developer and software vendors/user needs
• Provides ability to be up to date during fast
  XBRL taxonomy life cycles
• Users are the real winner
• Gain support for taxonomies in the software
• Are always provided the correct versions of the
  taxonomy
• For more information on I-TSI, see IASC
  Foundation website http//www.iasb.org/xbrl

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Overview

• Issue
• Solution
• Benefits
• Summary
• Demonstration

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A presentation by the IASC Foundation XBRL Team