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A full financial supply chainXBRL is Coming to Town
Paul Snijders
Semansys Technologies
A typical XBRL Case
• XBRL used for holistic solution• All participants in reporting chain
involved• Benefits for preparers and regulators• A show case implementation of XBRL• Standard XBRL software utilized
Implement
Deliver
Advance XBRL solutions
XBRL technology
Taxonomy development
Nation wide adoption
Partnering for success
The Regulator The Supplier
Honored to speak on behalf of:
The Customer
• How the ‘sales’ process worked
• The reporting organizations takes control
• A complete reporting chain realized
• XBRL implemented nation wide
The background
• Financial situation of local government not transparent with hidden capital and unclear financial position.
• Politicians in Europe demand more control over monetary policy.
• No clear European wide reporting standard in use.
Rules set by top EU regulator
• EMU reporting (European Monetary Union) to:– European Union (‘Federal Government’)– European Central Bank (‘FED’)
• New reporting requirement:– More detail– More frequent – quarterly– Faster – within 30 days after quarter end
• To be implemented as of Q1 2004
Territory: All local Government
• Rules apply to all local government organizations
• Impact on whole government and control chain
Cities
Semi government org´s
County-States
Country
Con
trol
Information
Water boards take the initiative
• Semi government, Euro 25 Billion Budget• Water management, dyke control, water quality• 50 of 900 local government orgs in Holland
30 daysto report
External accounting rules (EMU)
GL GL
Apply rules Customer
6 monthsto implement
Composition of solution
• Reporting orgs work with Semansys to compose the solution for the complete reporting chain
• Complete solution for the reporting entities
• ´Sales´ package to regulator
XBRL Introduced
´Selling´Customer
XBRL VendorApply rules
Model ‘sold’ to Regulator
• Some additional ‘convincing’ required
• Regulator accepts complete model
• ´Sales´ package to regulators on next levels
• Introduction to central government
Compose Proposition
Finalize model
Agree
Customer
XBRL Vendor
Regulator
XBRL Introduced
´Selling´
Apply rules
Involvement of CPA
• XBRL ‘selling’ to CPA Deloitte&Touche (Market share of D&T in local gov. is over 75 % )
• CPA supports Digital Reporting initiative
• CPA creates implementation guidelines, check lists and Assurance Method
Apply rules XBRL Introduced
´Selling´
Compose Proposition
Finalize model
Agree Build taxonomy
Training/ design Advice
Finalize model
Participate
Customer
XBRL Vendor
Regulator
CPA
SW vendors buy into model
• Local Gov. market has 3 major and 6 small GL vendors
• Supplier & Regulator ‘sell’ XBRL to SW vendors
• Software vendors integrate Semansys’ ready-to-sell Embedded Solution
Apply rules XBRL Introduced
´Selling´
Compose Proposition
Finalize model
Agree Build taxonomy
Training/ design Advice
Finalize model
Participate
Approve taxonomy
Execute Project
Prepare implementation
Assurance method
XBRL
Customer
XBRL Vendor
Regulator
CPA
SW vendors
Central Government buys in
Apply rules XBRL Introduced
´Selling´
Compose Proposition
Finalize model
AgreeApprove taxonomy
Execute Project
Prepare implementation
Assurance method
XBRL
Build taxonomy
Training/ design Advice
Finalize model
Participate
Deliver SolutionDirect processes
Deliver Solution
Implement Audit
Prepare receiving
Implement
Deliver
All local government organizations MUST report in XBRL as from 2004.
All local government organizations MUST report in XBRL as from 2004.
Ministry of Internal affairs
All participants involved
General Ledger
General Ledger
Internal financial
reporting
Internal financial
reporting
External financial
reporting
External financial
reporting Receivers Receivers
Reporting Org’sReporting Org’s Federal ControlOrgs
Federal ControlOrgs
EUECB
EUECB
AuditorsAuditorsControllersControllersAdminAdmin RegulatorsRegulators
Software VendorsSoftware Vendors
Processes
Participants
General Ledger
General Ledger
Internal financial
reporting
Internal financial
reporting
External financial
reporting
External financial
reporting Receivers Receivers
Reporting OrgsReporting Orgs Federal ControlOrgs
Federal ControlOrgs
AuditorsAuditorsControllersControllersAdminAdmin RegulatorsRegulators
Software VendorsSoftware Vendors
The supply chain
XBRL Vendor
XBRL Expertise
XBRL Module
CentralGov’
RegulatorCustomer
Auditor
XBRL
Taxonomy
‘XBRL a Must’
GL – SWVendors
Conclusions
• Closed loop solution realized• Proven integral approach• No threshold for direct
utilization • Standard software available • Low cost implementation • Direct advantages for
preparers and regulator
