IIIWG on IFRS impact and CBSO databases European Committee of Central Balance Sheet Data Offices

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IIIWG on IFRS impact and CBSO databasesEuropean
Committee of Central Balance Sheet Data Offices
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Content

• ECCBSO
• III WG on IFRS Impact
• Main works developed in 2006
• Works to be developed in 2007
• Showcase (ECCBSO format/XBRL)

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EUROPEAN COMMITTEE OF CENTRAL BALANCE SHEET DATA
OFFICES (ECCBSO)

• Informal group of CBSOs belonging to NIS and NCB
• Experience using accounting data for several
  purposes
• Risk assessment
• Economic analysis
• Statistics
• Common tool corporation's annual accounts
• Different goals, different questionnaires
• 5 working groups Risk assessment, BACH database,
  ESD database, Study WG, IFRS impact and CBSO
  databases (III WG)
• ECB belongs to the ECCBSO. TF AS invited to III
  WG meetings. IASCF is an observer

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Content

• ECCBSO
• III WG on IFRS impact
• Main works developed in 2006
• Works to be developed in 2007
• Showcase (ECCBSO format/XBRL)

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III WG. Participants

• Oesterreichische Nationalbank
• Banque Nationale de Belgique / National Bank van
  België
• Banque de France
• Deutsche Bundesbank
• Centrale dei Bilanci
• Banco de Portugal
• Banco de España
• IASCF-XBRL Working Team
• European Central Bank (observer)
• TF AS invited to all meetings

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Targets

• Proposed targets for 2006/2007
• Monitor and report to ECCBSO on IFRS new projects
  (specially SME)
• Monitor and report on IFRS impact in Europe
• Standard formats update formats, methodological
  note and taxonomy
• XBRL and CBSO current use. Success and drawbacks
  of XBRL
• Miscellaneous questions IFRS changeover impact,
  analysis of real data

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Content

• ECCBSO
• III WG on IFRS impact
• Main works developed in 2006
• Works to be developed in 2007
• Showcase (ECCBSO format/XBRL)

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Main works developed in 2006

• Analysis of IFRS changeover impact of 2005
• Enlarge real cases (around 200 European groups)
• Test XBRL with real cases
• Monitor IASB new standards comment letter to
  revision of IAS 1

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Documents created in 2006

• IFRS impact
• Quick guide book, updated with IFRS issued in
  2006
• Quantitative impact of IFRS first adoption
• Standard formats
• Real cases
• XBRL in European CBSO
• Other documents
• Impact of Kyoto protocol
• Comment letter to IASB concerning the exposure
  draft of amendments to IAS 1

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Quantitative impacts of IFRS first adoption

• Comparison of 2005 data (National-GAAP/IFRS)
• Only countries with one changeover date
• Mainly listed groups (number of groups)
• Belgium (57)
• France (231)
• Italy (125)
• Spain (111)
• IAS 32 and 39, not in all cases
• Final document distributed 1st March 2007

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Quantitative impacts of IFRS first adoption
sample of companies
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Quantitative impacts. Some expected and
unexpected findings

• IFRS influence on individual companies (i.e.,
  degressive depreciation and taxation)
• Preference for historical cost, instead of fair
  value
• A lot of differences in results found
• Diversity is a result of different starting
  points
• For the first time, comparable data in Europe
  will be available

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Quantitative impacts. Some common points

• Leases in balance sheet impact in borrowings
  (increase)
• Deterioration of net financial positions
• Increase of indebtedness ratio
• Decrease of net turnover (renting/sales among
  subsidiaries)
• Increase in return on equity, because net result
  grows, because provisions and amortizations fall
  down
• Other Increase of cash and cash equivalents

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Standard formats. Impact of IFRS (2005). XBRL use

• Content
• Standard formats (extended/reduced) and
  methodological note
• Other reporting standards available in Europe
  (SEC, financial institutions)
• Impact or IFRS issued in 2005 changes to the
  format
• Synergies of working together on this purpose
• Preliminary assessment of impacts on CBSO of new
  IFRS
• Precise changes to the format due to
• Improvements during 2006
• Changes in IFRS up to December 2005
• New IFRS-GP XBRL Taxonomy
• XBRL extension of the reduced format

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Standard formats
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Real cases (IFRS use by EU groups)

• Around 200 real cases created for
• Checking process of reduced standard format
• Assess real use of IFRS
• Investigate and test XBRL use on them
• Analyze IFRS specificities amongst others
• Fair value against historical cost
• Goodwill evolution
• Minority interest
• Others.

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Other documents Kyoto protocol / IAS1 CL

• Kyoto protocol accounting for emission rigths
• Introduction about Kyoto protocol and how it
  works
• Summary chart of accounting treatments, in
• First recognition
• Impairment of emission rights
• Expenses due to emission rights deficit
• Comment letter to IAS1 (revised presentation)
  main opinions
• ED does not bring clear improvements
• Total disagreement with changes to titles of FS
• Harmonization by reducing options

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Content

• ECCBSO
• III WG on IFRS Impact
• Main works developed in 2006
• Works to be developed in 2007
• Showcase (ECCBSO format/XBRL)

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Targets for 2007

• Follow with the proposed targets for 2006/2007
• Comments to IFRS new projects (specially SME)
  IFRS impact in Europe Update standard formats
  XBRL and CBSO
• Use of consolidated accounts / quarterly
  financial statements in CBSO
• Use real cases deeply analysis of
• Data quality
• Alternatives used in IFRS
• Financial structure
• Fair value

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Content

• ECCBSO
• III WG on IFRS Impact
• Main works developed in 2006
• Works to be developed in 2007
• Showcase (ECCBSO format/XBRL)

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IASCF-XBRL WT

• SHOWCASE
• http//www.iasb.org/xbrl/xbrl_lab/eccbso-pub/index
  .html