Transcript 16th XBRL International Conference

XBRL Formulae in Practice in Regulatory Environments:
Experiences and Benefits
Víctor Morilla (Bank of Spain)
Manuel Rodriguez & Moira Lorenzo (Atos Origin)
Bank of Spain XBRL Project Details
Moving towards XBRL: Phase 1
Nº Participants: > 300
Nº Filings/year: > 7000
Nº Concepts: > 650
Nº Participants: > 50
Nº Filings/year: > 200
Nº Concepts: > 950
Public Statements
Appraisal
Companies
Project
2003
2004
2005
2006
2007
2008
3
IT Solution: Phase 1
Valid
data
XBRL
instance
Legacy
Database
XBRL FRONT-END
Sender
Business rules validations
1
Basic XBRL validations &
Calculation linkbase
2
Data reported in the
same XBRL statement
3
Against other information in
database
(Ex: previous periods data)
4
Moving towards XBRL : Phase 2
Nº Participants: > 300
Nº Concepts (EU): ~ 1.700
Nº Dimensions (EU): 12
Nº Participants: > 300
Nº Filings/year: ~1000
Nº Concepts (EU): ~ 950
Nº Dimensions (EU): 22
Add. Concepts (ES): ~ 553
Add. Dimensions (ES): 8
Nº Participants: > 300
Nº Filings/year: > 7000
Nº Concepts: > 650
Nº Participants: > 200
Nº Concepts (ES): ~ 200
Nº Dimensions (ES): 10
Financial
Statements
(FINREP)
Solvency
Information
(COREP)
Exchange Offices
& Appraissal companies
Mutual guarantee
Nº Participants: > 50
Nº Filings/year: > 200
Nº Concepts: > 950
Public Statements
XBRL Formula
Nº Participants: > 200
Nº Concepts (ES): ~ 550
Nº Dimensions (ES): 8
Appraisal
Companies
Project
2003
2004
2005
2006
2007
2008
2009
2010
5
IT Solution: Phase 2
Now (from summer 2008 to present)
Valid
data
XBRL
instance
XBRL FRONT-END
Legacy
Database
Taxonomy viewer
Sender
1
Formula Errors are
informed
Basic XBRL validations
Business rules validations
2
Data reported XBRL Formula
validation
Business rules validations
Against other information in
3 database
(Ex: previous periods data)
6
Formula linkbase development
Business
Rules document
Business
Rules
document
Analysis
Documents
Reference numbers
& classification
Developing
Formula
linkbase
Formulae
Linkbase + corrected
Instance
generation
& testing
Formulae
linkbase
7
Starting point : Financial statements
+
Business
user
Financial
Statements
Business
rules
8
Input documents (II)
Initial business rules
1.
Amounts:
0001=0005+0010+0015+0018+0019
+
Business
user
Financial
Statements
Business
rules
0005=0006+0007
0010=0011+0012
0021=0025+0030+0035+0036+0037+0038+0039
0025=0026+0027
0030=0031+0032
0041=0045+0050+0057
0061=0066+0070+0077
2. Other internal relationship
At least one of the keys 0001 and 0021 must be different
from 0
0041<=0061
0045<=0065
0060<=0070
0001>= 0001(previous quarter)
9
Documents in technical terms
Business user
2
1
They write in technical terms
(cell codes)
Business
rules
They think at an abstract
business level
IT Analyst
Formula
rules
3
4
We infer the conceptual
information from cells detail
We write formula rules in
abstract level
IT Analyst
10
Analysis business rules document
(1) Classification
- Consistency, value & existence assertion
- One single formula can solve many rules
(2) Reference numbers
Business rules (legacy system):
0001=0005+0010+0015+0018+0019
0005=0006+0007
0010=0011+0012
0021=0025+0030+0035+0036+0037+0038+0039
0025=0026+0027
0030=0031+0032
0041=0045+0050+0057
0061=0066+0070+0077
8 business rules
Reference number: 3035-sv-1
Total positions is equal to the sum
of its breakdown by market risk
1 XBRL formula
11
Limitations
There is only the information contained in the instance
(Identifying future improvements)
Sometimes the business rules refer to concepts not included in the
same XBRL instance (even not in XBRL format – for instance, another
information stored in database -):
- Concepts related to other taxonomies
- Previous period information
0001>= 0001(previous quarter)
- Non-XBRL data
In this case we are detecting them and taking note for developing
improvements in the future
12
How errors are informed
Each assertion has:
- A reference number
- A label that describes the error
When an assertion is not satisfied the
following information is sent to the
user:
- The reference number
- The label describing the error
- The expression that failed
- The value of each input variable
- In the case of consistency
assertion:
The calculated value
The reported value
Assertion
Reference:
3035-sv-1
Label:
“Operational risk capital
requirements not consistent with its
breakdown by method applied”
13
Software – Taxonomy viewer
14
Software – Taxonomy viewer detail
(es) prestamos en garantía menor o igual que cartera de negociación
15
Conclusions: implicity
-
85% of formulas follow very simple patterns:
Arithmetic expressions (A = B + C)
Comparison expressions (A < B + C)
Conditional expressions (if A > B then C = D + E)
-
A good taxonomy design (a good data model)
improves the formulasmantainability
Dimensional tables design
SubstitutionGroup level design
16
Conclusions: Maintainability
Business
rules
XBRL
Formulae
%
COREP
3400
400
11,76%
FINREP
1200
120
10%
460
120
26,08%
Mutual
guarantee
(financial)
Mutual
guarantee
(solvency)
Capital planning
(financial
institutions)
Total
5280
5000
4000
3000
2000
170
45
26,47%
694
1000
0
50
9
18%
Columnas 3D 1
Columnas 3D 2
Number of business rules
5280
694
13,14%
Number of XBRL formulas
17
Conclusions: Resources estimation (I)
First project (COREP)
IT
About 400 XBRL Formula for 3.400 business
rules
Resources distribution
About 120 working days
= 5,5 months/ one person
(2 months with 4 people part time)
30 %
40 %
30 %
Training
Debugging
Effective work
Analysis
Development
Testing
18
Conclusions: Resources estimation (II)
Currenty (2009)
IT
About 100 XBRL Formula in 8 working days
(analysis & development & tests)
Resources distribution
2%
20 %
5%
33 %
40 %
Trainning
Analysis
Test
Debugging
Development
19
Conclusions:Formulas in taxonomies is a reality now
2008
May
Sep
2009
Nov
Jan
Feb
Mar
In production
FINREP
In production
subset
COREP
Development started
COREP
Development started
Mutual guarantee
development
FINREP subset
(solvency
starts
templates)
Apr
May
Jun
Sep
In production
Mutual guarantee
(financial templates)
In production Solvency for Mutual guarantee
companies
Next in production
Exchange Offices
& Appraissal
companies
Development started Financial institutions (capital planning)
Development started Mutual guarantee (financial templates)
In production Capital evaluation report
Development started Exchange Offices & Appraissal companies
20
Phase 3: Full business rules validation with XBRL
Current development
Valid
data
XBRL
instance
XBRL FRONT-END
Taxonomy viewer
Sender
1
Errors are
communicated
Basic XBRL validations
Business rules validations
2
3
Data reported XBRL Formula
validation
Against other information in
database
(Ex: previous periods data)
21