IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
2006-2008 © Business Reporting – Advisory Group 1
Practical aspects of COREP and FINREP implementation with XBRL
IX European Banking Supervisors XBRL Workshop and Tutorial
Michal Piechocki
Paris, 30 September 2008
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Acknowledgment
The author would like to warmly thank allthe participants of the survey and theirsubstantial and committed contribution to its development and prompt response.
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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Disclaimer
• The information provided by this presentation is for educational, communication and information purposes only and is not intended to constitute official review of the COREP and FINREP implementation status nor state official
• The survey was conducted in a limited time and it was agreed with theparticipants that further study should be carried for review, update and clarification, which is stated in the Conclusions and Recommendations section
• The author does not assume and hereby disclaims any and all liability to any person or entity for any claims, damages, liability or other loss resulting from any use of or reliance on this information
• The survey implemented an approach allowing, wherever possible, for limited and defined set of answers (e.g. YES/NO). The author is aware of a limitation resultingfrom this approach and suggests that the consecutive study replaces thosequestions with a scale-based responses or allows for comments
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Agenda
Model implementation plan: big picture
Survey presentation
Survey results presentation
Conclusions and recommendations
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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feasibility analisys
Detailed analisys of existing situation with regard to implementation of XBRL
Knowledge acquisitionPlanning of financial and human resources and attainable project timeframe
Specifications of requirements
Model implementation plan
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
implementation
Model implementation plan
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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implementation
Documentation, plan, resources
Processes and
procedures
Tools and Technologies
Knowledge and
experience
preparation
Model implementation plan
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
implementation
showcase
Communication!
internal external
Model implementation plan
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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implementation
development
taxonomy reporting platform
.xbrl
Model implementation plan
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
implementation
development
taxonomy
regulations data model XBRL taxonomy
Model implementation plan
XBRL metadata
processes and procedures
architecture and modularization
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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implementation
development
reporting platform
REPORTINGCHAIN
Model implementation plan
Report generating/
creating
Transfer/ Receiving
Validation
Mapping/ DB design
Analysis & Publication
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
implementation
development
reporting platform
development using own resources only
development using available tools as
components
purchase of the solution covering entire reporting chain
independency customization possibility
time and effort minimizing less knowledge required
Model implementation plan
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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implementation
testing
A+
A
B
C
D
E
evaluation&
improvement
Fool-proof testing
Validation procedures
Common errors
Performance issues
Model implementation plan
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implementation
pilot project
Real time / real data tests
Feedback from the market
Model implementation plan
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
2008-09-30
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maintenance
stability functionality
versioning information
v.1 v.2
Model implementation plan
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Survey introduction
• Participants
▫ Selection of representatives from National / Central Banks listed on the CEBS Network mailing list
▫ Representatives indicated on the COREP & FINREP extensions project list (website)
• Efficiency
▫ Sent to 10 European National / Central Banks
▫ Received answers from 7 entities
▫ Response: 70%
▫ Included in the survey results: 6 entities (1 came today)
• Time
▫ 09.09.2008 – 29.09.2008
• 108 fields of first-level information about implementation aspects
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Survey scope
• Strategy (37 fields)
▫ Goal
▫ Organisation
▫ Development of taxonomy
▫ Development of reporting platform
▫ Communication
▫ Schedule / timeline alignment
▫ Support
• Taxonomy (47 fields)
▫ Domain
▫ Technical
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Survey scope
• Reporting platform (24 fields)
▫ Technology
▫ Mechanism
▫ Address of website
▫ Validation engine
▫ Mapping mechanism
▫ Analysis software
▫ Encryption, authentication mechanism
▫ Comprehensive single access point for preparers
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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Goal statement
83%
17%
Number of projects with goal stated explicitly
Goal present
No goal
• Goals emphasized:
• Integration of banking sector in EU
• Applying recommendation of CEBS
• Enable XBRL as optional standard of filing
• but also…. meeting colleagues
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
COREP & FINREP: projects number
100%
0%
Number of projects implementing COREP
Yes
No
83%
17%
Number of projects implementing FINREP
Yes
No
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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COREP & FINREP: open vs closed reporting
20%
80%
FINREP*
Open
Closed
17%
83%
COREP
Open
Closed
* out of 5
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Total number of target financial institutions
0
500
1000
1500
2000
2500
1 2 3 4 5 6
Total number of institutions
• Average: 600 entities
• Minimum: 100
• Maximum: 2200
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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Departments involved
0%10%20%30%40%50%60%70%80%90%
100%
Not involved
Involved
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Experts involved
33%
50%
0%
0% 17%External
0
1 to 2
3 to 5
6 to 10
16%0%
67%
0%
17%
Domain
0
1 to 2
3 to 5
6 to 10
10+
0%
50%33%
0%
17%
Technical
0
1 to 2
3 to 5
6 to 10
10+
33%
50%
17%
Total
1 to 5
6 to 10
10+
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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Taxonomy development
67%
33%
Process
Internal
External
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Reporting platform development
72%
28%
Process
Internal
External
50%33%
17%
Development
In house
Components
Full solution
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Communication with software vendors
• 100% declared liaison with CEBS Network
33%
67%
Website for software vendors
Available
Not available
33%
67%
Seminars for software vendors
Provided
Not provided
33%
67%
Dedicated contact line
Provided
Not provided
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Communication with preparers
0%50%
100%
Website
Seminars
Dedicated
Provided
Not provided
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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Alignment of timeline
0% 20% 40% 60% 80% 100%
COREP
FINREP
IFRS
Yes
No
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Pilot project
25%
75%
Scope
Full
Limited
50%25%
25%
Participants
Selected
Voluntary
All
Exemplary numbers of participants inpilot projects: 170, 9, 4
67%
33%
Pilot project
Conducted
Not conducted
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Supporting tools for preparers
0%
20%
40%
60%
80%
100%
Interface
DOC
Application
Other
XLS
HTML0%
20%
40%
60%
80%
100%
Temporary /
Continuous
Not defined
Continuous
Temporary
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Domain: COREP & FINREP
• COREP
▫ Mostly both solo and consolidated (66%)
▫ Very often annually and quarterly (50%), often half-yearly and monthly (33%)
• FINREP
▫ Consolidated (40%), both (40%)
▫ Monthly (40%), quarterly (40%), annually (40%)
▫ Local GAAP not used (80%), used (20%)
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Taxonomy: COREP
67%
16%
17%
Document, entity data identified separately
Yes
No
Unknown
67%
16%
17%
Version
1.2.4
1.2.2
1.2.1
83%
17%
Extension
Yes
No
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Use of elements and best practices: COREP
• Number of extended elements varies from 4 to 700+
• Percentage of COREP elements used varies from 10% to 85%
33%
67%
XBRL BP
Yes
No
67%
33%
COREP BP
Yes
No
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Language used for documentation
67%
33%
EN
Yes
No
34%
33%
33%
Languages
National only
National and other
EN only
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Type of documentation for COREP
• Architecture: 50%
• Design style guide: 17%
• Preparers guide: 67%
• Extenders guide: 0%
0% 50% 100%
Architecture
Design style guide
Preparers guide
Provided Not declared
IX European Banking Supervisors XBRL Workshop and Tutorial, Practical Aspects of COREP and FINREP Implementation with XBRL, Paris
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Taxonomy: FINREP
60%20%
20%
Document, entity data identified separately
Yes
No
Unknown
100%
0%
Extension
Yes
No
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Use of elements and best practices: FINREP
• Number of extended elements varies from 350 to 2000+
• Percentage of FINREP elements used varies from 20% to 80%
60%
40%
XBRL BP
Yes
No
80%
20%
FINREP BP
Yes
No
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Language used for documentation
60%
40%
EN
Yes
No
40%
20%
40%
Languages
National only
National and other
EN only
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Type of documentation for FINREP
• Architecture: 40%
• Design style guide: 0%
• Preparers guide: 60%
• Extenders guide: 0%
0% 50% 100%
Architecture
Design style guide
Preparers guide
Provided Not declared
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Data model: COREP
• XLS used in 100% cases
• Automatic derivation of data model: 0%
83%
17%
Data model created
Yes
No
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Data model: FINREP
• In 100% cases data model was constructed
• In 100% cases XLS was the technology behind
• No one derived the taxonomy automatically
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Technologies used for reporting platform
0% 20% 40% 60% 80% 100%
Java
.NET
Other
Yes
No
Other technologies used: J2EE, XSLT, XQuery
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Reporting platform
0% 20% 40% 60% 80% 100%
Website
Webservice
FTP
Other
Enabled
Not used
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Validation engine
• All projects declared validation engine to be implemented
0% 20% 40% 60% 80% 100%
XML
XBRL
Dimensions
Taxonomy
Contexts
Conducted
Not conducted
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Business rules validation
• All declared support for business rules validation on the validator side
0%
20%
40%
60%
80%
100%
Proprietary XBRL Formulas
Not supported
Supported
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Mapping & analysis
67%
33%
Mapping mechanism
Used
Not used
50%50%
Analysis enabled
Yes
No
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Security & authentication
0% 20% 40% 60% 80% 100%
Login and password
Digital signature
Transfer encryption
Used
Not used
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Comprehensive interface for preparers
67%
33%
Complete reporting
Yes
No (COREP & FINREP only)
2006-2008 © Business Reporting – Advisory Group Sp. z o.o.
Conclusions
• Different requirements, different approaches
• Positive signs
▫ Best practices
▫ Discussion on harmonisation
▫ Growing volume of documentation
▫ Growing experience with software
• Questions
▫ How to discuss harmonisation when there is no common language?
▫ Consideration for implementation guidance
▫ Insufficient implementation knowledge
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Next steps
• Expanding the study
▫ Review of the survey and update if necessary
▫ Detailed technical comparison of taxonomies (difficulty with scope definition)
▫ Detailed analysis of software functionality
• Recommendation for implementation guidance definition
Michal PiechockiBR-AG [email protected]
http://www.br-ag.eu
Thank you