XBRL Spanish Jurisdiction and role of Banco de Espaa Experience and use of IASBXBRL

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XBRL Spanish Jurisdiction and role of Banco de
España Experience and use of IASB-XBRL
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• What is XBRL ?

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What is XBRL ?

• eXtensible Business Reporting Language (XBRL)
• XBRL XML Based Business Reporting Standard
• Publication, exchange, and analysis of financial
  information in internet
• Common platform for business reporting processes
• Ease of communicating financial data internally
  and externally

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How XBRL Works ?

• XBRL uses XML data tags to describe financial
  information
• Standard specifications and taxonomies that
  anyone can license for use in applications
• Royalty-free worldwide from XBRL International

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How XBRL Works ?
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XBRL Taxonomies

• Standard description and classification system
  for the contents of accounting reports
• Financial statement reporting (electronic
  report)
• Contain financial statements, auditors report and
  notes, all coded
• The instance document can be read directly by
  computer programs or end-users direct link
  between data users and producers
• Coupled with style sheets to produce as many
  different printed (or WEB) annual reports as
  necessary

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XBRL Taxonomies

• Admit extensions from a core system
• Mathematical and definitional relationships among
  them
• Text labels in multiple languages. Link between
  them
• References to authoritative literature (US GAAP,
  IASB, etc)

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XBRL Taxonomies

• Most important Taxonomies
• Global Common Document Taxonomy (Working Draft)
• IASB taxonomies
• Primary Financial Statements (PFS) (Final)
• Explanatory Disclosures and Accounting Policies
  (Working Draft)
• US Financial Reporting Taxonomy Framework (Final)

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IASB Primary Financial Statements (PFS)Taxonomy
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XBRL Taxonomies relationships

IASCF PFS
IASCF EDAP
Imports
XBRL Global Common.Doc.
National Extensions
Sectoral Extensions
National, sectoral Extensions
Entity Instance Document
Business Extensions
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XBRL Instance document

• XML file that contains business reporting
  information as XBRL elements
• Collection of financial facts using tags from one
  or more taxonomies
• Examples of instance documents include
• annual financial statement encoded in XBRL
• file containing the figures from a company
  earnings release
• file containing a large number of ledger
  transactions

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XBRL Instance document example
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XBRL Instance document NOVARTIS consolidated
financial statements

• 2001 2000 Millions CHF
• Sales 32.038 35.805
• Cost of goods sold -7.886
  -10.242
• Gross profit 24.152 25.563
• ltiascf-pfsRevenueFunction numericContext"Group20
  01ForPeriod"gt32038000000lt/iascf-pfsRevenueFunctio
  ngt
•   ltiascf-pfsRevenueFunction numericContext"Group
  2000ForPeriod"gt35805000000lt/iascf-pfsRevenueFunct
  iongt
•   ltiascf-pfsCostSalesFunction numericContext"Gro
  up2001ForPeriod"gt7886000000lt/iascf-pfsCostSalesFu
  nctiongt
•   ltiascf-pfsCostSalesFunction numericContext"Gro
  up2000ForPeriod"gt10242000000lt/iascf-pfsCostSalesF
  unctiongt
• ltiascf-pfsGrossProfitFunction numericContext"Gro
  up2001ForPeriod"gt24152000000lt/iascf-pfsGrossProfi
  tFunctiongt
•   ltiascf-pfsGrossProfitFunction
  numericContext"Group2000ForPeriod"gt25563000000lt/i
  ascf-pfsGrossProfitFunctiongt

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• XBRL ORGANISATATION
• SPANISH JURISDICTION

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XBRL INTERNATIONAL
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HOW TO JOIN XBRL INTERNATIONAL

• XBRL International is a non-profit consortium
• Provisional jurisdiction need a facilitator
  (non-profit organisation) creating an XBRL
  Taxonomy or other XBRL work products. Pay dues to
  XBRL International (5.000/year maximum period
  for pre-jurisdictions of 2 years)
• Established Jurisdiction non-profit
  organisation, involved in business reporting,
  that collects dues from ten or more members and
  pays dues to XBRL International (the higher of
  25,000 or 1/3 of jurisdiction member fees
  collected per year)
• Local jurisdiction members automatically become
  members of XBRL International
• XBRL jurisdictions are member groups either
  within a country or another interest area (ex.,
  sectors of activity, IASB)

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XBRL SPAIN

• Provisional jurisdiction since 2001, hosted by
  the Asociación Española de Contabilidad y
  Administración de Empresas(AECA) during 2 years.
  Banco de España is one of the founding members
• In 2003 it will be become a Established
  Jurisdiction. Banco de España is enhancing its
  role on XBRL Spain

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XBRL SPAIN

• Working party projects already finished
• Translation of IASB taxonomies Primary
  Financial Statements (PFS) with the correspondent
  link bases tag
• Banco de España(Central Balance Sheet Data Office
  Division) / Microsoft Test
• Use of CB abbreviated questionnaire
• Simplifications (only balance / security
  measures)
• Conclusions
• IASB XBRL elements not included under SP GAAP
• IASB XBRL tags not available to tag concepts of
  the CB Questionnaire
• It is necessary to develop SP GAP taxonomy

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XBRL SPAIN

• Future Working party projects
• XBRL CRAS (Credit Risk Assessment Service)
• Translation of IASB taxonomies Explanatory
  Disclosures and Accounting Policies (EDAP)
• XBRL Appraisal companies leadership of Banco de
  España
• Spanish Current General Accounting Chart
• Translation of XBRL US GAAP
• XBRL ICS (International Capital Statements)
  Value Reporting

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• THE FUTURE?

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The future IAS (IFRS)-XBRL as a standardised
solution

• Opportunity for international accounting
  standardisation
• Change to international accounting standards (IAS
  or IFRS).
• Use of XBRL as information exchange system
  (universal and flexible)
• Risk
• International standards may not be applied to all
  companies losses in intra-country comparison

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Standard form for European CBSOs, devised with
IAS-XBRL

• Work undertaken
• Complete form (general characteristics,
  employment, assets, liabilities, profit and loss
  account, cash-flow, changes in net worth).
  Characteristics
• Maximum level of detail, beyond classification
• Each concept defines whether there is an XBRL tag
• Use of net values in balance sheet
• Real case-study test, conclusion lack of
  information (employment, subsidies, depreciation
  and provisions, statements of movements) /
  different degree of use of IAS / difficulty of
  applying fair-value accounting

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Questionnaire format
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Challenges of effective standardisation

• Extension of IAS rules to all European
  companies, eliminating alternatives
• Use of XBRL by all companies, including SMEs
• Involvement of IT firms developing accounting
  software
• Development of extended XBRL classification with
  the participation of these companies (connection
  of accounting modules to other company reporting
  areas)