XBRL for regulatory reportingBelgian projects

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

XBRL for regulatory reportingThe National Bank of Belgium

Camille DÜMMCentral Balance Sheet Office

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

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

The CBSO at a glance - data

0%

20%

40%

60%

80%

100%

1995 1999 2003

Paper Floppy disk

In 2003 :269.192 companies296.673 annual accounts4.215.000 pages

Current processing of annual accountsElectronic

Paper

Images database

Quality Check

Scanning

Validation

Data entry

Accounting data

Data loading

Images CD

PDF fileText file

Output

Paper

Image CD

Internet

Figures

Studies

Statistics

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

The XBRL project - Process

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The XBRL Project - Steps2005

Development of a taxonomy based on the Belgian GAAP Publication of the taxonomy on the website and contact

with software companies2006

Internal filing process adaptation Development of a application allowing the companies to

fill in their annual accounts on Internet in XBRL2007

Filing normalized annual accounts in XBRL

Financial reporting for supervisory purposes :

the CBFA project.

Giancarlo PELLIZZARIBanking, finance and insurance commissionPrudential policy

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

Current situation

Scheme B : market financial reporting (B/S – P&L – 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)

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

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

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

New European context and its implications

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

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).

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.

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.

XBRL for Tax reportingFPS Finance

Dirk QuinaFederal Public Service Finance

Background

Input Processing Output

Typical Process:

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

Background

Gathering “Electronic” data: Specific channel for specific purposes Electronic devices (Tapes, disks, …) Problems reading and processing information

Electronic data exchange Project started mid 90’s Focus on security Real transactions

Existing projects

Edivat: VAT declarations

Professional users (accountants, fiscal experts,…) Multiple declarations

Traditional EDI EDIFACT Value Added Network Registration procedure

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

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

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

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

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

Contacts National Bank of Belgium

Camille Dümm - Central Balance Sheet Office

camille.dumm@nbb.be

Banking, finance and insurance commissionGiancarlo Pellizzari - Prudential policy

giancarlo.pellizzari@cbfa.be

• Federal Public Service FinancesDirk Quina dirk.quina@minfin.fed.be