XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002 Phil Walenga, Assistant Director, DIR XBRL International Regulatory.

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<ul><li> Slide 1 </li> <li> XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002 Phil Walenga, Assistant Director, DIR XBRL International Regulatory Chair </li> <li> Slide 2 </li> <li> 2 Key Points We have a concrete business purpose for using XBRL We have consensus and commitment within our agency and our regulatory partners to make this work We are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulators We have other components in place: standards, specifications and momentum The views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC. </li> <li> Slide 3 </li> <li> 3 Briefing Highlights Why Is XBRL Important? Regulatory Reporting Issues Call Report Modernization Using XBRL Bank Regulatory Reporting Framework Bank and Savings Industry Framework Timelines Impacts </li> <li> Slide 4 </li> <li> 4 Why is XBRL Important? XBRL improves how we collect, process and distribute financial information Think data, not rigid, inflexible forms Dynamic financial environment needs XBRL- like capabilities to: Adapt faster to changing business conditions Collect and distribute data more timely, accurately and comparably Reduce data collection and usage burden </li> <li> Slide 5 </li> <li> 5 Reporting Issues Adaptability - introducing new requirements is cumbersome Inconsistency interpretation of requirements may vary across reporting software Report Preparation - can be a laborious, manual process for some institutions Data Precision - needs improvement Timeliness - current process is lengthy User Needs - integrating data &amp; requirements labor intensive for external analysts </li> <li> Slide 6 </li> <li> 6 FDIC Vision Real Time Data FDIC Chairman Donald E. Powell outlined a vision for the FDIC:.. including a new program to offer real-time bank Call Report data.. </li> <li> Slide 7 </li> <li> 7 FFIEC Target - Call Reports Modernize the collection, processing, validation and distribution of financial data Quarterly Consolidated Report of Condition and Income (Call Reports) Submitted by 8,000 + banks 22 schedules, 2,000 plus data elements, 1,500 validation criteria Instructions 394 pages in PDF file Relied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring. </li> <li> Slide 8 </li> <li> 8 Potential Beneficiaries FDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial system Insures $3.1 trillion in deposits Supervises 5,600 banks Custodian for the financial reporting of 8,000+ banks Manages receiverships for any failed US insured bank or thrift </li> <li> Slide 9 </li> <li> 9 Potential Beneficiaries (contd) The Federal Reserve Board (FRB) The Office of the Comptroller of the Currency (OCC) Banks/Trade Associations Software Vendors that provide specialized support Business Analysts Consumer </li> <li> Slide 10 </li> <li> 10 Objectives Reporting Transparency for regulators, investors &amp; depositors Accuracy, currency and comparability Adaptability to respond to changing business environment and emerging risks Event driven reports Efficiencies and Savings in Call Reporting and related processes Reduce manual labor for agencies and banks Integrate regulatory reports </li> <li> Slide 11 </li> <li> 11 Work Accomplished FDIC, FRB, and OCC initial analysis of Call Report data requirements FDIC developed draft Call Report taxonomies FDIC developed proof of concept demonstration FDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel format </li> <li> Slide 12 </li> <li> 12 XBRL Call Report Development Completing analysis of report requirements Instructions, validation criteria and report forms FDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March 01 to Dec. 02 Complete year end 2002 Release March 2002 Call Report taxonomies in October publish to WWW.FDIC.GOVWWW.FDIC.GOV FDIC creating tool for Call Report Analysts to create and maintain Call Report taxonomies Complete year end 2002 </li> <li> Slide 13 </li> <li> 13 Business Analyst Tool This is the reporting form All Call Report analysts manage Call Report taxonomies Not need to be XBRL developer Art work of the form no longer important Under construction </li> <li> Slide 14 </li> <li> 14 Business Analyst Tool Replaces MS Word, Adobe PDF and MS Excel files Integrates forms, instructions and validation criteria </li> <li> Slide 15 </li> <li> XBRL Components/Terminology XBRL-Taxonomy XBRL- Instance XSL - Style Sheet XBRL-Specification Schema and Linkbases Schema and Linkbases Schema: dictionary of terms Linkbases: set of links to manage references, labels and relationships Framework 1 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 taxonomies Presentation or transformation of tagged data </li> <li> Slide 16 </li> <li> 16 XBRL Call Report Framework Report Instructions Call Report Instance Validation Criteria Business Rules 031/041 Forms Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information </li> <li> Slide 17 </li> <li> 17 US Bank Regulatory Reporting Framework Instance Document Series of Reporting Forms (Document) Call Report Bank Holding Company Summary of Deposits Branch Application Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information </li> <li> Slide 18 </li> <li> 18 Bank and Savings Industry (BASI) BASI Framework under development Use by bankers for internal reporting E&amp;Y, KPMG LLP, PwC, D&amp;T, FDIC, FRB, and others are participating Analyzed a number bank SEC filings Developed Excel worksheets including balance sheet, income statement, cash flow and notes Converting now to XBRL format Expect draft release by year end </li> <li> Slide 19 </li> <li> 19 Call ReportBASI BASI equivalent items electronically mapped to Call Report and automatically filled </li> <li> Slide 20 </li> <li> 20 North American XBRL GAAP Framework, BASI and US Bank Regulatory Framework Global Common Document NAFR General Concepts NAFR Primary Terms Bank &amp; Savings Institutions U.S. Bank Regulatory Framework General Concepts Assets Liabilities Equity Owner Contributions Owner Distributions Comprehensive Income Income Expenses Primary Terms Cash Held to Maturity Securities Trading Securities Trade Secrets Goodwill Other Assets Minority Interest Equity Common Stock Net Income Extraordinary Items Document and Entity </li> <li> Slide 21 </li> <li> 21 Common Components Global Common Document North American General Concepts North American Primary Terms Bank and Savings Institutions Bank Regulatory Reporting Framework Bank Call Reports </li> <li> Slide 22 </li> <li> 22 Taxonomies, Implementations 20012002 2003 FFIEC Call Report US GAAP Framework 2004 U.S. Bank &amp; Savings Taxonomies Implementations Australian Regulator Version 2 Call Report Australian Regulator Version 1 </li> <li> Slide 23 </li> <li> 23 Impacts Near Term Earlier access to Call Report data for banks, regulators, analysts and public More accurate data More timely changes to report requirements More comparable data for external analysts Reuse data banks and regulators </li> <li> Slide 24 </li> <li> 24 Impacts Mid to Long Term Banks automate processing of regulatory reports Develop specialized edits and reports by bank type or rating Rely more upon on offsite monitoring Analysts cover more banks or todays amount better Become data centric vs. form centric Possible integration of reports and holistic view of the frequency of reports </li> <li> Slide 25 </li> <li> 25 Questions ? Philip Walenga, Assistant Director, DIR Federal Deposit Insurance Corporation pwalenga@fdic.govpwalenga@fdic.gov 202-736-0569 </li> </ul>


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