European Regulatory Roll-out Package guide

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:* XBRL basics – terminology, syntax and structure; :* XBRL basics – terminology, syntax and structure;
:* how the data models correspond to the business model and semantic rules into XBRL syntactic schemas and filers forms that define reporting data. Consider information requirements which could have causes additional issues to be solved in the modelling architecture. :* how the data models correspond to the business model and semantic rules into XBRL syntactic schemas and filers forms that define reporting data. Consider information requirements which could have causes additional issues to be solved in the modelling architecture.
 +
 +Many are approaching as compliance requirements driven by a new reporting directive. An alternative approach is considering XBRL adoption as a technology evolution of current reporting systems to take advantage of this standard and reap the benefits of a standardised electronic exchange format.
 +
 +In general, successful XBRL implementations usually do not change the business models, just the report format resulting in a transparent use of XBRL to the end users.
 +
 +It is specially recommended to apply a structured methodology for data modelling. On this topic the Eurofiling architecture approach is proposing a methodology on normalization called Data Point Modelling. This will be introduced later in Section 5, but mainly consists of defining a method to model dictionary data, their aspects and relationships in terms of domains and hierarchies, business validation rules and the corresponding classifications of the data in different tables and forms for filing and visualization (figure 2).
 +
 +
 +<center> [[Image: CEN_DPM-clarificationDiagram.jpg]]<br />
 +'''Figure 2: DPM process and XBRL relationship'''
 +</center>
 +
 +<br />
 +[SOURCE: Abstract description of the model represented in taxonomies following the DPM approach] <br />
 +
 +
 +How this data inherited from the European frameworks fits into the national reporting model. Study if the current information models for reporting entities have more disclosures or information. In case more detailed information is required, knowledge on the extension of European taxonomies is needed. This will be detailed
 +in Section 4.<br />
 +
 +
 +In order to select the most appropriate XBRL strategy, the regulator should consider the relevant answers to the questions below that will help to address reporting decisions:
 +:* How many different reporting templates do we need to receive from reporting entities?
 +:* What is the frequency of this reporting information? Quarterly, semi-annually, annually?
 +:* What is the minimum reporting unit of information expected to receive (one template, one module, one table, one fact, other)?
 +:* What is the profile of reports (minimum and maximum size expected) to be received keeping a margin of security for processing?
 +:* What response time is needed to process received reporting information?
 +:* Will it be allowed partial submissions? Or will all data need to be reported in full?
 +:* What is the minimum precision accepted for data?
 +:* Will it be allowed for reports to be re-submitted if the reporting entity wishes to submit an amendment? Will It be placed any deadlines for receipt of any amendments?
===Review existing reception infrastructure=== ===Review existing reception infrastructure===

Revision as of 10:46, 18 December 2013

CEN Workshop Agreement

Status: Approval Final Draft - Formal Vote

CEN WS CWA3 Convenor: Aitor Azcoaga (EIOPA)

CEN WS XBRL Experts: Pieter Maillard (Aguilonius), Pablo Navarro (Atos)

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Foreword

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

CWA XBRL 003 consists of the following parts, under the general title Improving transparency in financial and business reporting — Standard regulatory roll-out package for better adoption
— Part 1: XBRL Supervisory Roll-out Guide
— Part 2: XBRL Handbook for Declarers

This CWA is one of a series of related deliverables. The other deliverables are:

CWA XBRL 001 which consists of the following parts, under the general title Improving transparency in financial and business reporting — Harmonisation topics:
— Part 1: European data point methodology for supervisory reporting.
— Part 2: Guidelines for data point modelling
— Part 3: European XBRL Taxonomy Architecture
— Part 4: European Filing Rules
— Part 5: Mapping between DPM and MDM

CWA XBRL 002 Improving transparency in financial and business reporting — Metadata container


Introduction

This document is intended to provide guidelines to European regulators in the implementation and roll out of the reporting standard using XBRL across Europe.

The set of recommendations included in this document aim to facilitate the implementation of European National Supervisors to adopt XBRL in any of the reporting frameworks. The following sections will provide guidance on the use, understanding, preparation, and extension of their filings in eXtensible Business Reporting Language (XBRL).

This guidance is in the form of notes in association with the pertaining requirements clause and uses the terms “should” (recommendation), “may” (allowance) and “can” (possibility). Organizations wishing to implement this CWA would be expected to consider all recommendations where the term "should" is used.

COREP, FINREP (and Solvency II or other future) XBRL taxonomies are offered to European regulators for national implementation. The first releases (2006) of the COREP and FINREP XBRL frameworks have proven that a standardized technical roll-out package is needed to increase the adoption rate and avoid implementation variances, which have a detrimental effect on the overall cross-border effectiveness of using one reporting standard. As well this roll-out guide tries to promote the economies of scale for a better adoption.


Contents

Scope

This CWA is a general guide to XBRL oriented towards national regulators on how to implement, extend and manage XBRL taxonomies. The guidance and recommendations included in this CWA have been created for regulatory filings in the context of European supervisory reporting.

In this document, “regulatory filings” encompasses authoritative financial reporting standards and generally accepted accounting principles/practices (or GAAP), regulatory reports whose subject matter is primarily financial position and performance and related explanatory disclosures, and data sets used in the collection of financial statistics; it excludes transaction- or journal-level reporting, primarily narrative reports (for example, internal controls assessments) and non-financial quantitative reports (for example, air pollution measurements).

How to start with XBRL. Supervisory Perspective

This section describes how the XBRL standard can be implemented from the regulator's perspective.

First, we present different levels of XBRL adoption, to help define the supervisor's strategy.

This is followed by a description of the minimum steps required to facilitate initial understanding of the XBRL standard, and guidelines describing the review and the likely impact on existing infrastructure and internal information systems.

Finally, we suggest additional considerations which should be taken into consideration during preparation and planning, to help regulators establish which services they need to implement to enable reporting entities to adhere to the XBRL standard. Figure 1 presents an overview of the activities described in the section.


Image:BusinessOverview.jpg
Figure 1 —The Business Overview to Rollout XBRL reporting

[SOURCE: 24th XBRL International Conference: Academic Track 6]

Determine the level of XBRL adoption

Widespread adoption of XBRL as a business information exchange format has revealed a number of implementation alternatives.

Selection of a specific adoption strategy by the regulator establishes the roadmap for implementation from the regulator's current reporting framework to a framework which supports the new legislation. This step is probably the most important step in XBRL adoption.

Attending to the level of penetration (or permeability) of XBRL between the Regulator and the Filing entities the adoption can be classified in the following:

  • Use of XBRL solely for the electronic exchange of data between the national regulator and European Authority to comply with legislation.
  • Adaptation of existing reporting channels to receive XBRL reports from reporting entities as well as using XBRL for the electronic exchange of data between the national regulator and the European Authority. In this scenario, regulators could make use of automated business rules to validate data received from reporting entities.
  • Full exploitation of XBRL for internal reporting models (multidimensional data analysis) in addition to the use of XBRL for receiving data from reporting entities and electronic exchange between the national regulator and the European Authority as described above.

Depending on the strategy selected, the regulator must also determine which XBRL enabled software applications should be made available to their internal departments and also to reporting entities under their jurisdiction.

To name a few examples for consideration: XBRL validation, report visualization, conversion from existing data formats, filing forms, monitoring, security enforcement and versioning that will facilitate the analysis and supervision of reported information.

Plan and prepare the new reporting models

From the regulator's perspective there are two main key drivers in favour of XBRL adoption: compliance with new regulation directives and ensuring the accuracy of data reported by reporting entities.

Compliance with new regulation directives implies the adequacy of the reporting business models and rules to the XBRL language and semantics to be implemented.

The most important requirement for financial supervision reporting is data accuracy. Reported data, for legal reasons, is expected to be:

  • accurate for arithmetic purposes;
  • calculated accurately based on the required definition;
  • preserved during the data transfer process.

It is also a good idea to plan and prepare the adaptation of all data requirements. For this, the regulator needs to learn and understand the following topics:

  • XBRL basics – terminology, syntax and structure;
  • how the data models correspond to the business model and semantic rules into XBRL syntactic schemas and filers forms that define reporting data. Consider information requirements which could have causes additional issues to be solved in the modelling architecture.

Many are approaching as compliance requirements driven by a new reporting directive. An alternative approach is considering XBRL adoption as a technology evolution of current reporting systems to take advantage of this standard and reap the benefits of a standardised electronic exchange format.

In general, successful XBRL implementations usually do not change the business models, just the report format resulting in a transparent use of XBRL to the end users.

It is specially recommended to apply a structured methodology for data modelling. On this topic the Eurofiling architecture approach is proposing a methodology on normalization called Data Point Modelling. This will be introduced later in Section 5, but mainly consists of defining a method to model dictionary data, their aspects and relationships in terms of domains and hierarchies, business validation rules and the corresponding classifications of the data in different tables and forms for filing and visualization (figure 2).


Image: CEN_DPM-clarificationDiagram.jpg

Figure 2: DPM process and XBRL relationship


[SOURCE: Abstract description of the model represented in taxonomies following the DPM approach]
How this data inherited from the European frameworks fits into the national reporting model. Study if the current information models for reporting entities have more disclosures or information. In case more detailed information is required, knowledge on the extension of European taxonomies is needed. This will be detailed in Section 4.
In order to select the most appropriate XBRL strategy, the regulator should consider the relevant answers to the questions below that will help to address reporting decisions:
  • How many different reporting templates do we need to receive from reporting entities?
  • What is the frequency of this reporting information? Quarterly, semi-annually, annually?
  • What is the minimum reporting unit of information expected to receive (one template, one module, one table, one fact, other)?
  • What is the profile of reports (minimum and maximum size expected) to be received keeping a margin of security for processing?
  • What response time is needed to process received reporting information?
  • Will it be allowed partial submissions? Or will all data need to be reported in full?
  • What is the minimum precision accepted for data?
  • Will it be allowed for reports to be re-submitted if the reporting entity wishes to submit an amendment? Will It be placed any deadlines for receipt of any amendments?

Review existing reception infrastructure

Review internal information systems

Prepare the communication plan for Reporting Entities

Summary

European Framework background information

XBRL Standard extension Mechanism

Guideline on Extensions

Architecture, Methodology and Best Practices

Context for a Reference Architecture

Steps for implementation

XBRL Reference Architecture

Functional Architecture

Technical Architecture

Management and maintainability

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