XBRL for regulatory reporting Belgian projects

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XBRL for regulatory reportingBelgian projects
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Agenda

• XBRL projects by Belgian regulators
• National Bank of Belgium
• Banking, finance and insurance commission
• Federal Public Service Finance
• Agenda
• The current situation
• Why XBRL
• Project steps

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XBRL for regulatory reportingThe National Bank
of Belgium
Camille DÜMM Central Balance Sheet Office
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The CBSO at a glance

• Legal changes in 1975 and 1976
• Most Belgian companies must legally publish their
  annual accounts
• Standardization of annual accounts

• Set up of the CBSO on 17 April 1978
• to ensure speedy and efficient circulation of
  information available in annual accounts
• to arrange the statistical processing of the
  information gathered

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The CBSO at a glance

• 1993 Introducing filing of annual accounts on
  floppy disk (text file)
• 2000 Spreading on microfilm abandoned in favor of
  images-CD (PDF file)
• 2002 Supplying copies of filed annual accounts
  through the Internet
• 2004 Filing annual accounts through the Internet

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The CBSO at a glance - data

• In 2003
• 269.192 companies
• 296.673 annual accounts
• 4.215.000 pages

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Current processing of annual accounts
Electronic
Output
Data loading
Validation
PDF file
Text file
Paper
Images database
Quality Check
Internet
Images CD
Image CD
Paper
Accounting data
Scanning
Figures
Statistics
Data entry
Studies
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The XBRL Project - Justification

• Why to change for XBRL ?
• Current processing system rigidity
• Future implementation of IAS/IFRS

• Purposes of the XBRL project
• Introduce flexibility in our process
• Make the maintenance easier
• Harmonization of the data format and exchange
  with other regulators
• Prepare the electronic filing of annual accounts
  drawn up according to IAS/IFRS

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The XBRL project - Process
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The XBRL Project - Steps

• 2005
• Development of a taxonomy based on the Belgian
  GAAP
• Publication of the taxonomy on the website and
  contact with software companies
• 2006
• Internal filing process adaptation
• Development of a application allowing the
  companies to fill in their annual accounts on
  Internet in XBRL
• 2007
• Filing normalized annual accounts in XBRL

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Financial reporting for supervisory purposes
the CBFA project.

• Giancarlo PELLIZZARI
• Banking, finance and insurance commission
• Prudential policy

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Agenda

• Current situation
• New European accounting context and its
  implications
• Financial reporting the Belgian and European
  packages
• XBRL within the CBFA
• Planning use of XBRL

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Current situation

• Scheme B market financial reporting (B/S PL
  limited notes)
• Scheme A  prudential reporting consisting of
• prudential reporting (Capital regulation
  banking risks)
• statistical data (e.g. European Central Bank,
  National Bank of Belgium, etc.)
• financial reporting (analysis of financial market
  information and banking risks)

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Current situation

• Scheme A covers
• statutory basis (59 banks)
• territorial basis (58 banks)
• consolidated basis (24 banks)
• More than 10.000 data to be delivered on
• monthly basis
• quarterly basis
• bi-annual basis
• annual basis

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Current situation

• Information is processed to obtain the Bank
  Performance Report, allowing individual and group
  analysis
• rotations
• comparisons between banks
• Peer Group analysis
• outlyer analysis
• vertical and horizontal analysis
• Bank Performance Report is an XML based tool

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New European context and its implications

• Starting January 2005, all European listed
  companies must use IAS/IFRSs for consolidated
  financial statements.
• All Belgian banks and investment firms that must
  present consolidated accounts will report to the
  supervisor according to a standardised IAS/IFRSs
  scheme A (Royal decree not yet approved).
• Difference between BE GAAP and IAS/IFRS
• BE GAAP ? fixed layout
• IAS/IFRSs ? free layout

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New European context and its implications

• Standardized reporting scheme A for IAS/IFRS
  consolidated financial statements will enhance
• comparability
• level playing field.

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Financial reporting The Belgian and European
packages

• Limited to IAS/IFRS financial reporting.
• Consolidated basis.
• Based on Word and Excel tables, with extensive
  references to IAS/IFRSs having an XBRL taxonomy
  in mind.
• Belgian scheme published for consultation until
  end of October 2004.
• European scheme project within Committee of
  European Banking Supervisors (CEBS).

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XBRL Within the CBFA

• The sector asked to consider using XBRL as
  reporting standard.
• After evaluation of different possibilities, XBRL
  was considered as the best solution in a IAS/IFRS
  environment because
• XBRL handles non standardized financial reporting
  formats
• taxonomies will become available
• easily extendable to meet specific Belgian
  supervisory needs.
• From an IT perspective, the migration to XBRL is
  logical as the current reporting standard is XML.

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Planning use of XBRL

• XBRL
• Analytical XBRL work based on final version of
  reporting package, incorporating the final IFRS
  taxonomy in 2005.
• First implementation of XBRL to be determined
  in function of availability of IAS/IFRS
  taxonomies.
• First use of new reporting scheme in 2006 XML
  for at least one year.

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XBRL for Tax reportingFPS Finance

• Dirk Quina
• Federal Public Service Finance

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Background

• Typical Process

Input
Processing
Output

• Paper based Flows
• Key in data
• Processing of data by mainframes
• Results internal and external use

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Background

• Gathering Electronic data
• Specific channel for specific purposes
• Electronic devices (Tapes, disks, )
• Problems reading and processing information
• Electronic data exchange
• Project started mid 90s
• Focus on security
• Real transactions

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Existing projects

• Edivat
• VAT declarations
• Professional users (accountants, fiscal
  experts,)
• Multiple declarations
• Traditional EDI
• EDIFACT
• Value Added Network
• Registration procedure

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Existing projects

• Intervat
• VAT declaration
• Via Internet
• XML
• Intelligent form
• Digital Signature
• Acknowledgement
• Finprof
• Withholding taxes
• Single declaration multiple declarations
• Results of back-end processing via mail

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Recent evolutions

• On-line transactions
• Different domains
• Customs
• Land Property
• Communication with Banks
• Exchanging information with other governmental
  organizations
• Traditional EDI
• Use of secure channel
• XML- files

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Strategic Options

• Increasing importance of electronic data
  exchange
• Use of common standard
• Internal applications
• End user Applications
• Within government
• One platform for exchanging information
• Internal
• External

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Strategic Options

• Focus on XML
• XBRL
• International context
• OASIS
• OECD
• Tax administrations
• Professional users
• Not a strategic goal as such,
• BUT part of global strategy

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Planned actions

• Existing applications
• Study Client listing (VAT)
• Conversion VAT declaration
• Conversion Intracom listing
• Study
• Analyzing existing processes
• Existing taxonomies
• Selecting 3 major domains
• Roadmap
• Timeframe 2005

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Contacts

• National Bank of Belgium
• Camille Dümm - Central Balance Sheet Office
• camille.dumm_at_nbb.be
• Banking, finance and insurance commission
• Giancarlo Pellizzari - Prudential policy
• giancarlo.pellizzari_at_cbfa.be
• Federal Public Service Finances
• Dirk Quina
• dirk.quina_at_minfin.fed.be