European XBRL Reporting Entities handbook

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Revision as of 17:04, 19 November 2012

CEN Workshop Agreement

Status: Working Group Working Draft

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1 Scope
2 Normative references
3 Terms and definitions
4 XML and XBRL: Introduction to its technological building blocks
5 XBRL: Extensible Business Reporting Language
6
7 XBRL Components
8 XBRL Recommendations
9 Bibliography

Foreword

This document is a working document. This document has been prepared by CEN/WS XBRL, the secretariat of which is held by NEN. This document is a working document.

Introduction

Scope

The objective of this CWA is to provide a roll-out package for regulators who wish to use XBRL. More precisely, this CWA consists of two parts:
:i) An XBRL supervisory roll-out guide: this is oriented towards national regulators on how to implement, extend and manage XBRL taxonomies
:ii) An XBRL handbook for declarers: this is a roll-out guide or reference handbook would give a general introduction to XBRL and serve as a help to preparers of XBRL (reporting entities)

The scope of the current document is on the second part of the CWA; the XBRL handbook for declarers. In this general guide to XBRL, the following subjects will be addressed: [DRAFT]

Normative references

The following referenced documents are indispensable for the application of this document. For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies.
EN xyz:199x, Title of the european standard.
EN ab c:199x, General title of series of parts — Part c: Title of part.

Terms and definitions

For the purposes of this document, the following terms and definitions apply / the terms and definitions given in … and the following apply.

Term1: description on text for term1
Term2: description on text for term2

XML and XBRL: Introduction to its technological building blocks

This chapter aims to give an overview of the basic technologies that underpin XBRL. Our aim is to give a general introduction of each component in order to obtain a better understanding of this reporting language.

XML

According to the definition of the W3C, XML is a simple and flexible text format, simple and flexible, derivative of SGML. Although originally designed for the publication of information, XML is increasingly important in facilitating electronic communication as will be indicated further below.

Continue general definition of XML

XML as a markup language

Explains with simple examples how XML is made of tags

XML structures information

Explains XML's hierarchical structures

Components of an XML document

Explain XML elements, root node, and use of <? Xml version = "1.0" encoding = "UTF-8"> opening tag

Namespaces

Explain the use of namespaces: reason, URI, …

Namespaces and prefixes

Explain the use of prefixes (by further elaborating existing example)

UNICODE

Explain unicode

XML Benefits

Sum up and explain basic benefits of xml like; human-readable, self-containing, hierarchical structure, platform independent, …

XML Schemas

Introduce XML schema: definition of XML schema, why it is useful

XML Schema Components

Explain: types, attributes, groups of attributes and elements, importing and including schemas, substitution groups, …

Benefits of using XML Schema

Sum up benefits of XML Schema

XLink

Explain xlink

Technological components used by XML and by XBRL

XPath

Explain xpath

XSLT

Explain xslt

XQuery

Explain xquery

XBRL: Extensible Business Reporting Language

High level description

How to structure reporting data?

Before starting to explain XBRL, we would like to show via an example why the structuring of reported data can be useful. Reported financial data tend to be represented a table format. For example, the COREP Capital Adequacy table looks this:

Such a representation of information is very human-readable. However, it is not ideal for machine interpretation, as it is not very structured. As a result, the following question comes to mind: How can we structure this information, so that it can be transmitted and interpreted in a consistent way? For the purpose of this example, we’ll focus on the “Eligible Capital” line, which is highlighted in yellow in the above example.

A first step would be to tag the amount of Eligible Capital in a way that it is directly linked to the concept of Eligible Capital:

<p-ca:EligibleCapital>215</p-ca:EligibleCapital>

Although this information is already quite structured, some contextual information is missing. Information like the currency of the amount:

<p-ca:EligibleCapital unitRef=”EUR”>215</p-ca:EligibleCapital>

And finally, the reporting period:

<p-ca:EligibleCapital unitRef=”EUR” contextRef=”2012-12-31”>215</p-ca:EligibleCapital>

The above example shows, in a nutshell, how XBRL allows to structure reporting data.

XBRL Introduction

XBRL, or eXtensible Business Reporting Language, is a communication standard developed in order to simplify the exchange of business and financial data.
XBRL normalises the format of data (via the use of XML techniques) en the validation of data (via XBRL taxonomies).

ADD Explanation of the link between taxonomies and instance documents (as pictured above)

XBRL also provides among others:

Standard validation rules (mathematical and logical rules)
The use of label linkbases (which allows multi-lingual taxonomies)
The possibility to provide rendering
Standard toolset which allow to work with XBRL

During the following chapters we explain XBRL more elaborately. We try to give an insight in the following points: …

XBRL Taxonomies

XBRL taxonomy = "metadata" of reporting data. Taxonomies consist of schema's and relationships or linkbases

Schemas

The schema defines business conept (element of the schema) and basic attributes like: data type, period type, balance attribute, …

Linkbases

Explain linkbases like, label linkbase, presentation linkbase, definition linkbase, calculation linkbase

Extensibility

Taxonomy Extensions

Creating new relationships

Dimensions

The multidimensional model

XBRL dimensions

Formulas

XBRL Reporting: Instance documents

Explain with a practical example how an instance document is constructed…

Validation of XBRL reports

Describe the process of the validation of an instance document: xml validation, xml schema validation, xbrl validations, ….

XBRL Components

XML

XML, or eXtensible Markup Language, is a W3C standard which allows to represent structured data in the form of flat text. This representation is both machine readable as human readable.
Simple XML example:

<?xml version="1.0" encoding="utf-8"?>
<playlist name="mylist" xml:lang="en">
 <song>
  <title>Yesterday</title>
  <artist>The Beatles</artist>
 </song>
 <song>
  <title>Mother's Little Helper</title>
  <artist>The Rolling Stones</artist>
 </song> 
</playlist>

XML languages use elements & attributes in order to structure content. The XML specification defines the syntax of elements, attributes en other structures which can appear in XML documents.
XML Schema (XSD) is a language used for describing the structure of XML documents. XML Schema allows the creation of schema's of for example XML-documents, by which these documents are formally specified and by which they can be validated by XML validators. An XML Schema provides among others what the elements of an XML document are, where they appear, what characteristics must be respected, etc…
An XML document can be correct (well-formed) according to the general XML standard, but also invalid according towards a specific XML Schema.
[Further explain XML and components like: XML namespaces, XML schema, XPath, XLink, XPointer]

XBRL Taxonomy

[Chapter explains the main purpose of XBRL taxonomy (definition of reporting concepts)]

An XBRL Taxonomy is a collection of taxonomy schemas and linkbases. A taxonomy schema is an XML schema document (file). Linkbases are XML documents (file) which follow the XLink specification. The schema must ultimately extend the XBRL instance schema document and typically extend other published XBRL schemas on the xbrl.org website.

Taxonomy schemas define Item and Tuple "concepts" using <xsd:element> elements. Concepts provide names for the fact and indicate whether or not it's a tuple or an item, the data type (such as monetary, numeric, fractional, or textual), and potentially more metadata. Items and Tuples can be regarded as "implementations" of concepts, or specific instances of a concept. A good analogy for those familiar with object oriented programming would be that Concepts are the classes and Items and Tuples are Object instances of those classes. This is the source of the use of the "XBRL instance" terminology. In addition to defining concepts, taxonomy schemas reference linkbase documents. Tuples instances are 1..n relationships with their parents; their metadata is simply the collection of their attributes.

Linkbases are a collection of Links, which themselves are a collection of locators, arcs, and potentially resources. Locators are elements that essentially reference a concept and provide an arbitrary label for it. In turn, arcs are elements indicating that a concept links to another concept by referencing the labels defined by the locators. Some arcs link concepts to other concepts. Other arcs link concepts to resources, the most common of which are human-readable labels for the concepts. The XBRL 2.1 specification defines five different kinds of linkbases:

Label Linkbase
Reference Linkbase
Calculation Linkbase
Definition Linkbase
Presentation Linkbase

[TODO: add more details on the linkbases]

XBRL Instance Document

The XBRL instance begins with the <xbrl> root element. There may be more than one XBRL instance embedded in a larger XML document. The XBRL instance itself holds the following information:

Business Facts: facts can be divided into two categories
Items are facts holding a single value. They are represented by a single XML element with the value as its content.
Tuples are facts holding multiple values. They are represented by a single XML element containing nested Items or Tuples.

In the design of XBRL, all Item facts must be assigned a context.

Contexts define the entity (e.g. company or individual) to which the fact applies, the period of time the fact is relevant, and an optional scenario. Date and time information appearing in the period element must conform to ISO 8601. Scenarios provide further contextual information about the facts, such as whether the business values reported are actual, projected, or budgeted.
Units define the units used by numeric or fractional facts within the document, such as USD, shares. XBRL allows more complex units to be defined if necessary. Facts of a monetary nature must use a unit from the ISO 4217 namespace.
Footnotes use XLink to associate one or more facts with some content.
References to XBRL taxonomies, typically through schema references. It is also possible to link directly to a linkbase.

SHOW (via a practical example) how an instance document is constructed: namespaces, contexts & units, facts, …

XBRL Recommendations

XBRL 2.1 Standard

XYZ

XBRL Dimensions 1.0 Specification

The Dimensions 1.0 Specification is a modular, optional extension to the XBRL 2.1 Specification which allows XBRL taxonomy authors to define and restrict dimensional information for instance authors to use in the segment and scenario elements of the context element of XBRL instance documents. Its architecture is such that any XBRL artefacts (instances and their Discoverable Taxonomy Sets) that conform to this specification also conform to the XBRL 2.1 Specification and may be processed without error by any processor that is capable of correctly processing XBRL artefacts, even if those processors are unaware of this modular extension.

XBRL Formulas 1.0 Specification

A XBRL formula specifies validations based on XBRL instance facts and generation of derived data as output XBRL instance facts.

The goals of XBRL formula are to provide validation capabilities not available in the Base Specification (XBRL 2.1) validation, dimensional validation, in a manner that is closely attuned to XBRL semantics, intuitive in XBRL terms, suitable for business users, extensible, and maintainable. XBRL formula is designed to accommodate the significant variation between filers, annually-released authority instances and filing rules. Finally it is designed to be formally documenting, both for its own maintenance, and to support audit functions.

A goal of XBRL formula is that output instance documents can represent many kinds of derived data, such as transformations, determination of ratios, and data mining.

Transformations can include transforming from one kind of taxonomy to another (for example from Global Ledger to a Financial Reporting taxonomy), from one version of a the same taxonomy to another (such as where namespaces change and some concepts are mapped), and in mapping between different accounting schedules of the same taxonomy (such as relating cash flow to balance sheet and transactions).

Determining of ratios and data mining can identify derived financial data, such as common ratios. In the case of XBRL filings for SEC and IFRS, individual filers may have financial reports that use different concepts or accounting rules than each other. In this case a goal of XBRL formula is to be able to provide declarative specifications that aid in identifying such concepts, which may be by knowing names of alternative names of concepts or possibly by knowing the relationship of concepts to each other (in XBRL's linkbases).

Bibliography

[1] :xxx

[2] :xxx

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 ==XML Schemas==
-Introduce XML schema: definition of XML schema, why it is useful<br />
+<span style="background-color:yellow">Introduce XML schema: definition of XML schema, why it is useful</span><br />
 ===XML Schema Components===
-Explain: types, attributes, groups of attributes and elements, importing and including schemas, substitution groups, …<br />
+<span style="background-color:yellow">Explain: types, attributes, groups of attributes and elements, importing and including schemas, substitution groups, …</span><br />
 ===Benefits of using XML Schema===
-Sum up benefits of XML Schema<br />
+<span style="background-color:yellow">Sum up benefits of XML Schema</span><br />
 ==XLink==