Liv Watson

1
XBRL Implementations
Tuesday, March 04, 2003

• Liv Watson
• Director of XBRL
• lwatson_at_edgar-online.com

2
Agenda

• XBRL Primer
• The XBRL Consortium
• Spec Status
• Taxonomy Statues
• XBRL Implementations
• APRA
• FDIC
• EDGAR Analyst
• Microsoft, NASDAQ, and PwC Pilot Project-
  Special guest Eric Cohen, PwC
• Questions?

3
Cringleys Law and Web Sevices Adoption
Technology changes less in the short term than we
believebut the long-term impact is far greater
than we realize.
4
The Evolution of Web Services
5
International Steering Committee Chair
Jurisdictions
1st Vice Chair
6
Implementations
"XBRL is a key information technology standard
that can be used by bank regulators to provide
timelier and accurate data, while reducing burden
to all stakeholders. -Philip Walenga, Assistant
Director FDIC
7
Key Points

• FDIC have a concrete business purpose for using
  XBRL
• FDIC have consensus and commitment within our
  agency and our regulatory partners to make this
  work
• FDIC are working collaboratively to design a
  solution to aid an audience broader that just the
  FDIC, or federal bank regulators
• FDIC 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.
8
Why FDIC Choose XBRL?

• XBRL improves how government agencies 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

9
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 requirements
  labor intensive for external analysts

10
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.

11
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

12
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

13
Objectives

• Reporting Transparency for regulators, investors
  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

14
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

15
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.GOV
• FDIC creating tool for Call Report Analysts to
  create and maintain Call Report taxonomies
• Complete year end 2002

16
Under construction

• 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

17

• Business Analyst Tool
• Replaces MS Word, Adobe PDF and MS Excel files
• Integrates forms, instructions and validation
  criteria

18
XBRL Components/Terminology
XBRL-Specification
Rules to governs creation of XBRL compliant files
and conformance to the specification
XBRL-Taxonomy
A collection of financial facts for a certain
period of time for a reporting entity. By report
purpose, industry and jurisdiction.
Schema and Linkbases
Schema dictionary of terms Linkbases set of
links to manage references, labels and
relationships
XBRL- Instance
Output result of tagging data using one or more
taxonomies
XSL - Style Sheet
Presentation or transformation of tagged data
Framework
1 or more taxonomies
19
XBRL Call Report Framework
Report Instructions
Validation Criteria
Business Rules
031/041 Forms
Call Report Instance
20
US Bank Regulatory Reporting Framework
Series of Reporting Forms (Document)
Branch Application
Instance Document
Instance Document
Instance Document
Instance Document
Call Report
Bank Holding Company
Summary of Deposits
21
Bank and Savings Industry (BASI)

• BASI Framework under development
• Use by bankers for internal reporting
• EY, KPMG LLP, PwC, 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 early 2003

22
Call Report
BASI
BASI equivalent items electronically mapped to
Call Report and automatically filled
23
North American XBRL GAAP Framework, BASI and US
Bank Regulatory Framework
Global Common Document
NAFR General Concepts
NAFR Primary Terms
Bank Savings Institutions
U.S. Bank Regulatory Framework
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Common Components
25
Taxonomies, Implementations
Taxonomies
US GAAP Framework
U.S. Bank Savings
Implementations
Call Report
FFIEC Call Report
Australian Regulator Version 2
Australian Regulator Version 1
2004
2003
2001
2002
26
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

27
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

28
"The market adoption of XBRL will increase the
quality and timeliness of Analyst's research and
findings"- Mark Schnitzer- Director, Morgan
Stanley Dean Witter
29
What Does _at_ APRA Contain?

• An Electronic Data Collection System (D_at_A)
• A Returns Management module (include workflow)
• A sophisticated Analysis Environment (data
  warehouse)
• A Reference Data Module (operational Meta-Data)
• A Forms Management module (user-driven forms
  designs and layout)
• A Derivations and Validations module (rules
  engine)
• An XBRL Viewer

30
Major Strengths of _at_ APRA

• Robust separate server for data collection,
  workflow-driven processing and analytics (data
  warehouse)
• The data model supports unlimited revisions of
  data at any time
• A single syntax used across the solution for
  derivation rules, validation rules and analytical
  processing
• Meta-Data single point in the solution for
  defining data and rules that are of interest to
  any part of the system (no hard coding of rules
  that manage/govern data)
• Flexible reporting the data model allows
  complex reports to be developed (e.g., comparing
  an institution with its cohorts)
• The forms (defined in XBRL) have an accompanying
  graphical layout that allows third party
  applications to present/display the form.
• USES XBRL v2.0 Proven ease of audit and
  migration

31
_at_ APRA CDR Solution Design
Regular Data Upload
Quarterly Data Collection
Data Derivation And Validation
Data Revision
Data Analysis
Data Extraction Delivery
Data Definition (Meta-Data)
Repository
Security Model
Technology Platform
Hosting Services
32
EDGAR Analyst LLC
Edgar Analyst was created to offer the
marketplace quick access to XBRL market data,
financial data, company profile information, and
a host of industry-accepted analytical tools,
cost-effectively, in one place, via the Internet.
Edgar Analyst will evolve into a Global Data
Exchange offering these same sets of information
and utilities for evaluating investment
opportunities in companies traded on stock
exchanges around the world.
33
Market Research
JP GAAP
DKGAAP
With XBRL adoption world wide the market drives
a need for mapping XBRL taxonomies and deliver
Analytical Tools to the market place
NR GAAP
Other GAAP
Industry Analytical Taxonomies
One click translation solutions
Mapped Industry Ratio Analysis
DK GAAP
IAS GAAP
US GAAP
CA GAAP
Only top quality contributors will be asked to
participate to this exchange, based on the
accuracy and reliability of their data
34
United States

• XBRL US Jurisdiction
• US GAAP Taxonomy Development
• Bank Regulation
• FDIC, FRB, FFIEC XBRL Call Reports
• Credit Analysis
• Moodys Risk Analyst
• Bank of America
• Dresdner Kleinwort Wasserstein
• Investor Relations
• Morgan Stanley
• Microsoft

35
XBRL Adoption Spectrum
Bank Regulators APRA, FDIC
Evangelism
Investor Relations Microsoft, Reuters
Deployment
Tax Authorities, Company Registrars, Internal
Reporting
Commitment
Credit Analysts, Software Vendors, Intermediaries
Business Case
Investors, Regulators
Awareness
36
XBRL/XBRL Everywhere

• Cisco already has the daily close
• FDIC wants to have real time bank examinations
• Company wants to have electronic reporting of 300
  mutual funds, rather than paper-based to save
  money
• NCCS wants to stop keying in data for 250,000
  organizations at a cost of 5,000,000 per year
• Company wants to consolidate 300 different
  subsidiaries on 100 different accounting systems
• What do you want to do better, cheaper or faster?

37
Concluding Remarks..
Embrace XBRL or .............
38
XBRL Web Services NASDAQ Pilot

• Eric E. Cohen
• Chair, XBRL US Steering Committee
• eric.e.cohen_at_us.pwcglobal.com

39
Review XBRL as Payload
40
Web Services ERP Componentization
CRM
ERP
Budgeting, Forecasting Tax planning
41
Evolution From Modular Approach
AR
AP
IM
PO
HR
ERP
GL
GL
42
To Build Your Own Module
Transaction Engine
GL
Financial Reporter
Spell Checker
Import Export
Allocation Engine
43
Your Next Financial Reporter?
http//www.nasdaq.com/xbrl
44
Excel Investors Assistant

• Discovery
• Analysis
• Presentation
• Graphics
• But why be limited to one application?

You know how to WSDL, dont you?
45
Whet Your WSDL
www.nasdaq.com/xbrlws/XbrlWebService.asmx?WSDL
46
Madness to the Methods

• Example GetCompanyFinancialData
• This method will return the financial filing for
  a company based on the fiscal year and quarter.
  The method is called with companyStockTicker,
  quarter, and year parameters.
• The companyStockTicker is the accepted ticker
  symbol for the company (i.e. Microsoft MSFT,
  Intel INTC, Dell DELL).
• The quarter parameter is an integer value that
  represents the filing quarter. Acceptable values
  for this parameter are 1,2,3,4.
• The year parameter indicates the requested fiscal
  year. The financial statement is returned in the
  companyXbrl element.

47
SOAP Request

• POST /xbrlws/XbrlWebService.asmx HTTP/1.1
• Host www.nasdaq.com
• Content-Type text/xml charsetutf-8
• Content-Length length
• SOAPAction "http//www.nasdaq.com/xbrlws/GetCompa
  nyFinancialData"
• MLSchema-instance" xmlnsxsd"http//www.w3.org/20
  01/XMLSchema" xmlnssoap"http//schemas.xmlsoap.o
  rg/soap/envelope/"
• q.com/xbrlws" string
  panyStockTicker
• int
• int

48
SOAP Response

• HTTP/1.1 200 OK
• Content-Type text/xml
• charsetutf-8
• Content-Length length
• MLSchema-instance" xmlnsxsd"http//www.w3.org/20
  01/XMLSchema" xmlnssoap"http//schemas.xmlsoap.o
  rg/soap/envelope/"
• xmlns"http//www.nasdaq.com/xbrlws"
  
  string
  ker string
• string
• string

49
http Request

• GET
• /xbrlws/XbrlWebService.asmx/GetCompanyFinancialDa
  ta?
• companyStockTickerstring
• quarterstring
• yearstring
• HTTP/1.1
• Host www.nasdaq.com
• This means you can access the service manually
  from your browser by typing in a URL, such as
• www.nasdaq.com
• /xbrlws/XbrlWebService.asmx/GetCompanyFinancialDat
  a?
• companyStockTickerMSFT
• quarter4
• year2000)

50
http Response

• HTTP/1.1 200 OK
• Content-Type text/xml
• charsetutf-8
• Content-Length length
• s"
• string
  
• string
• string
• string

51
Balanced Part of Healthy Breakfast

• How about help in figuring out how to code
  against it?
• NO PROBLEM

52
XML Web Services
Accounting System A
Accounting System B
Give me this years trial balance and the
details for Officers Comp, Maintenance and
Repairs, and prepaid taxes.
Current GAP filled by proprietary mappings
Generic Data Query ???
Generic Discovery, Access WS
Help me understand how to get the XBRL data from
your web service.
Shared Vocabulary XBRL
Data Format XML
Create an XBRL export file for me please, or let
me know how to tap into the XBRL data stream.
Audit Tool
53
Summary

• XBRL is payload for business reporting supply
  chain
• Web Services stands to revolutionize how
  information flows and is processed
• NASDAQ Pilot offers glimpse into possibilities

54
PwC
55
Questions?
Special Guest
Eric E. Cohen Chair, XBRL US Steering
Committee eric.e.cohen_at_us.pwcglobal.com