XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002

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XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002. Phil Walenga, Assistant Director, DIR XBRL International Regulatory Chair. Key Points. We have a concrete business purpose for using XBRL - PowerPoint PPT Presentation

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XBRL Applying the eXtensible Business Reporting LanguageXBRL Symposium, September 23, 2002Phil Walenga, Assistant Director, DIRXBRL International Regulatory ChairKey PointsWe have a concrete business purpose for using XBRLWe have consensus and commitment within our agency and our regulatory partners to make this workWe are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulatorsWe have other components in place: standards, specifications and momentumThe views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.Briefing HighlightsWhy Is XBRL Important?Regulatory Reporting Issues Call Report Modernization Using XBRLBank Regulatory Reporting FrameworkBank and Savings Industry FrameworkTimelinesImpactsWhy is XBRL Important?XBRL improves how we collect, process and distribute financial informationThink data, not rigid, inflexible formsDynamic financial environment needs XBRL-like capabilities to:Adapt faster to changing business conditionsCollect and distribute data more timely, accurately and comparablyReduce data collection and usage burden Reporting IssuesAdaptability - introducing new requirements is cumbersome Inconsistency interpretation of requirements may vary across reporting software Report Preparation - can be a laborious, manual process for some institutionsData Precision - needs improvementTimeliness - current process is lengthyUser Needs - integrating data & requirements labor intensive for external analysts FDIC Vision Real Time DataFDIC Chairman Donald E. Powell outlined a vision for the FDIC:.. including a new program to offer real-time bank Call Report data..FFIEC Target - Call ReportsModernize the collection, processing, validation and distribution of financial dataQuarterly Consolidated Report of Condition and Income (Call Reports)Submitted by 8,000 + banks22 schedules, 2,000 plus data elements, 1,500 validation criteriaInstructions 394 pages in PDF fileRelied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.Potential BeneficiariesFDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial systemInsures $3.1 trillion in depositsSupervises 5,600 banksCustodian for the financial reporting of 8,000+ banksManages receiverships for any failed US insured bank or thriftPotential Beneficiaries (contd)The Federal Reserve Board (FRB)The Office of the Comptroller of the Currency (OCC)Banks/Trade AssociationsSoftware Vendors that provide specialized supportBusiness AnalystsConsumerObjectivesReporting Transparency for regulators, investors & depositorsAccuracy, currency and comparabilityAdaptability to respond to changing business environment and emerging risksEvent driven reportsEfficiencies and Savings in Call Reporting and related processesReduce manual labor for agencies and banksIntegrate regulatory reportsWork AccomplishedFDIC, FRB, and OCC initial analysis of Call Report data requirementsFDIC developed draft Call Report taxonomiesFDIC developed proof of concept demonstrationFDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel formatXBRL Call Report DevelopmentCompleting analysis of report requirementsInstructions, validation criteria and report formsFDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March 01 to Dec. 02Complete year end 2002Release March 2002 Call Report taxonomies in October publish to WWW.FDIC.GOV FDIC creating tool for Call Report Analysts to create and maintain Call Report taxonomiesComplete year end 2002Business Analyst Tool This is the reporting formAll Call Report analysts manage Call Report taxonomiesNot need to be XBRL developerArt work of the form no longer importantUnder constructionBusiness Analyst Tool Replaces MS Word, Adobe PDF and MS Excel filesIntegrates forms, instructions and validation criteriaXBRL Components/TerminologyXBRL-TaxonomyXBRL- InstanceXSL - Style SheetXBRL-SpecificationSchema andLinkbasesSchema: dictionary of termsLinkbases: set of links to manage references, labels and relationships Framework1 or more taxonomies =Rules to governs creation of XBRL compliant files and conformance to the specification A collection of financial facts for a certain period of time for a reporting entity. By report purpose, industry and jurisdiction.Output result of tagging data using one or more taxonomiesPresentation or transformation of tagged dataXBRL Call Report FrameworkReportInstructionsCall ReportInstanceValidationCriteriaBusinessRules031/041FormsUS Bank Regulatory Reporting FrameworkInstance DocumentInstance DocumentInstance DocumentInstance DocumentSeries of Reporting Forms(Document)Call ReportBank Holding CompanySummary of DepositsBranch ApplicationBank and Savings Industry (BASI)BASI Framework under developmentUse by bankers for internal reportingE&Y, KPMG LLP, PwC, D&T, FDIC, FRB, and others are participatingAnalyzed a number bank SEC filingsDeveloped Excel worksheets including balance sheet, income statement, cash flow and notesConverting now to XBRL formatExpect draft release by year endCall ReportBASIBASI equivalent items electronically mapped to Call Report and automatically filledNorth American XBRL GAAP Framework, BASI and US Bank Regulatory FrameworkGlobal Common DocumentNAFR General ConceptsNAFRPrimary TermsBank & SavingsInstitutionsU.S. Bank Regulatory FrameworkCommon ComponentsTaxonomies, Implementations200120022003FFIECCall ReportUS GAAPFramework2004U.S. Bank & SavingsTaxonomiesImplementationsAustralianRegulatorVersion 2Call ReportAustralianRegulatorVersion 1Impacts Near TermEarlier access to Call Report data for banks, regulators, analysts and publicMore accurate dataMore timely changes to report requirementsMore comparable data for external analystsReuse data banks and regulatorsImpacts Mid to Long TermBanks automate processing of regulatory reportsDevelop specialized edits and reports by bank type or ratingRely more upon on offsite monitoringAnalysts cover more banks or todays amount betterBecome data centric vs. form centricPossible integration of reports and holistic view of the frequency of reports Questions?Philip Walenga, Assistant Director, DIRFederal Deposit Insurance Corporationpwalenga@fdic.gov 202-736-0569(PASSION for the subject, EXCITIEMENT, FOCUS, Speak LOUD, Change of Pace and Tone, 10 second rule, silent pause, serving God and others.)Thank you for the opportunity to talk to you about what the FDIC, FRB and OCC are planning and preparing to do with XBRLToday I am going to describe what FDIC expects to accomplish with XBRL, what we have completed in the two years we have invested, and what we see on the horizon.In the almost 30 years I have worked for FDIC I have been fortunate to be involved in a number of core technologies from the initial use of PCs, to LANs, WANS, client server database and the Internet.I more excited about the potential for change that XBRL brings us than I have about any emerging technology in a long time.Key points of this presentation include,This is not a solution in search of a problem. The first application is widely used within the industry, and it can be even more useful with XBRL.FDIC, FRB and OCC have made significant commitment in time and resources to make this work and we are in agreement for its use.We are collaborating and participating with a wide audience of stakeholders that affects not just the regulators. Bankers, Wall Street Analysts, software vendors and consumers.COMPONENTS:Standards include accounting standards, electronic dictionaries already in place, and reporting standards.The XBRL specification is in second release and FDIC is playing a significant role in advancing its rules.Momentum: The FDIC, FRB and OCC have been working on the business application to be discussed today for over two years and the FDIC has been an active member of XBRL for almost two years.Regulatory reporting processes have problems in each step from developing the reports to integrating the results that XBRL can help resolve.FDICs Chairman Don Powell has provided FDIC with an aggressive target when he stated earlier this year that he wanted real time Call Report data. Transition: Call Reports is the first application targeted to use XBRL.Call Reports is the first application for XBRL where we believe it will meet a concrete business needFDIC heavily relies upon Call Reports for:Other stakeholders including the FRB, OCC, banks and Wall Street analysts use it.We are working toward modernizing the whole processCall Report is a:As one of the beneficiaries, FDIC has taken the lead in preparing and planning to use XBRLFDIC is.The FDIC, (next slide)FRB and OCC are all direct beneficiaries and collaborating to make it happen.Consumers benefit because we will have better information to manage risks of the banking industry.As a result of our collaborative efforts, we have accomplished to date the following:Proof of concept used as a basis to get consensus and commitment to use XBRL for Call Report processing.The validation criteria was in MS Word early this year, which made it very difficult to use by programmers. MS Excel is a step forward, but still lacks all the benefits of XBRL.Expect to complete analysis of the data in four to six weeks.This is a mock up screen. Under construction This becomes the form and tool for Call Report analysts from each agency to update and develop Call Report taxonomiesThis becomes the tool to create the reporting form think data, metadata, not rigid forms.The art work of the forms is no longer important and we can put less emphasis on the form and more on the content. Function over formIn the long term, I can envision this tool being modified to include a myriad of current forms into a more complete view and management of regulatory reportsRecall the definition of framework is important because it will be used often throughout rest of the presentationAnd the definition of an instance document as an output file.The architectural view of the XBRL Call Report Framework includes the FRB MDRM data dictionary for regulatory reports. Which will be a key taxonomy a master taxonomy.The National Information Center data from the FRB is also going to be used as master taxonomy for demographic information.The other taxonomies include:Banks will submit their quarterly Call Reports as an XBRL instance document that will be sent to a central processing site via the Internet.Since we are including all the other report form data elements from the MDRM data dictionary, in our architecture, we are designing a long term US Bank Regulatory Reporting Framework.As additional piece of FDICs collaborative efforts, a XBRL Framework for the Bank and Savings Industry in underway.E&Y leading this effort.FDIC hosted a two day meeting to help getting it started.If bankers use the BASI for management reporting:They can reuse to map data from BASI taxonomy to Call Report taxonomyData quality likely to be higher, since used internally by bankersData collection burden by bankers could be reduced also.The XBRL Call Report Framework, US Bank Regulatory Framework and BASI and fits within a larger construct of national and international taxonomies and frameworks under development.Rob Blake, the next speaker, will be talking in more detail about NAFR.To just highlight one point, that the accounting industry and XBRL members are developing a an overarching set of taxonomies financial terms that the banking industry and regulators can take advantage of.In pursuing a challenging project such as this, we want the most bang for the buck. That is why we working on as many XBRL taxonomy fronts as possible.These common set of terms from these taxonomies can be shared by multiple entities for multiple purposes.Banks can use the terms for internal reportingWhich can feed information for regulatory reportsLike Call ReportsTimelines for the taxonomies and frameworks mentioned include:NAFR I wont steal Robs thunder so I will let him tell you about the release date.The BASI as mentioned is expected by year end. Participation by the banking industry is certainly welcome.Call Report taxonomies for eight periods is due by year end, with the March 2002 set of taxonomies due in about two weeks.Implementations:One key one is the APRA rolloutSimilar to us, with a little twist. They developed an application and distributed it to their constituents. We are sending out the reporting requirements to be integrated into Call Report software vendors products and to bankers to be used in their systems.The FFIEC Call Report processing using XBRL is anticipated first quarter 2004.By either using the BASI or mapping back end systems to the XBLRized Call Report software, banks can automate some or perhaps all of the process of completing a Call Report.Think out of the box and develop specialized edits, etc.Analysts can do more or do it better because of the quality, timeliness and improved comparability of data that XBRLized Call Reports would provide. We then can rely more upon if for off site monitoring. Over time we could take the Bank Regulatory Reporting Framework farther and begin to think more about data instead of forms.This frees us to think about possibly integrating reports and holistically viewing the frequency of reports for instance.

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