XBRL Canada Annual Conference “Efficient and Effective Government Reporting”

17 October 2012Ottawa, Canada

A Roadmap to XBRL Adoption in Canada

Gord Beal, CICAGeoff Zakaib, XBRL Canada

XBRL Canada and the CICA XBRL Canada is the jurisdictional

organization that is responsible for the coordination of XBRL activity in Canada

Geoff Zakaib is Chairman of XBRL Canada The Canadian Institute of Chartered

Accountants (CICA) has encouraged and supported XBRL Canada from the beginning

Gord Beal is Director, Guidance and Support at the CICA and provides liaison between XBRL Canada and the CICA

CICA and XBRL Canada have worked together on a variety of projects◦ Submission to the Red Tape Commission of the

Canadian Government◦ Preparation of the strategy document – Roadmap

to Adoption of XBRL in Canada

CICA and XBRL Canada – a team

Arose out of a desire of the government to cut costs of unnecessary processes

It’s clear that SBR-XBRL could cut costs for both the government and for those who file information with the government

We recommended SBR be adopted Cited the experience in Netherlands and

Australia in particular

Red Tape Commission - An Opportunity for SBR in Canada?

The Roadmap document follows up on the Red Tape Submission

With a detailed summary of how to implement SBR in Canada

It also is consistent with other government programs and policies, such as:

The Open Data Project The “Tell us Once” Policy The new Data Center Consolidation Project

The Roadmap Document

Focus efforts in three areas: refocusing government and cutting costs; modernizing operations; and making it easier for Canadians to do business with government

Government will tap into technology to transform its “back office” and modernize and automate the “nuts and bolts” of business processes

Tony Clement – Oct 2, 2012

Will be a “huge effort” that will affect all corporate services and operations across government

Departments will use more electronic documents and reduce their reliance on paper. The government will overhaul its web presence to save money

Tony Clement – Oct 2, 2012

The federal government must cut the administrative burden that businesses have to deal with by:

Cutting the burden of regulatory requirements on businesses;

Cutting the information demands on businesses; and

Enhancing the use of electronic services to reduce compliance costs.

Red Tape Reduction

The federal government must cut the hidden burden created when individual businesses have to contend with the demands of many different federal regulators by:

Getting the federal regulatory house in order;

Adopting “Tell Us Once” initiatives within departments that, with consent and appropriate protection of privacy, will allow the recycling and reuse of information already provided; and

Increasing the use of electronic “single windows” for information on regulatory requirements.

Red Tape Reduction

Open Data - offers government data in more useful formats to enable citizens, the private sector and non-government organizations to leverage it in innovative and value-added ways.

Open Information - is about proactively releasing information to Canadians on an ongoing basis and making government information easier to find and more accessible.

Open Government

Pro’s and Con’s of existing Canadian environment

•Opportunity to create a strategic vision for e-government

•Insufficient data quality and analytics•Lack of comparability of Canadian to international financial data

•Administrative burden on business filers•Costly individual "sea of redundant data" in different institutions

Steps for introduction of XBRL in Canada

1. create supportive environment

2. develop and maintain technical infrastructure

3. implement projects

Pillars for successful XBRL implementation

LEGAL

• Analysis of legal state-of-the-art reporting obligations

• Proposal of legal changes

• Analysis of legal impact

• Continuous revision of results

• Users and adopters feedback

ORGANIZATIONAL

• Analysis of the structure of the reporting organisations

• Requirements for organisational structure

• Roles and responsibilities

• Involvement of Canadian institutions and organisations

• Communication

DATA

• Analysis of the scope of data reported by / to various entities

• Proposal of data sets and redundancy elimination

• Proposal of taxonomies

• Continous data update

• Update and maintenance of taxonomies

TECHNOLOGICAL

• Analysis of reporting technical solutions

• Proposal of technical solutions

• Analysis of technological impact

• Technical solutions introduction

• Technical monitoring and changes control

Fact Finding / Study Potential Changes

Proposals and Impact Analysis

Review and Market Feedback

XBRL Implementation Process

• Define and tag all data items and forms subject to filing• Define all data owners and receivers• Define all information filing frequencies

Identification

Key Stakeholders

Affected entities by sector

Banking

Banks

Credit Unions

Business

Regulated Companies with special reporting

obligations

Companies listed on the Stock Exchanges

Taxpayers

Capital markets

Stock Exchanges

Securities Commissions

Securities brokerage companies

Investment funds management

companies

Financial services

Money transfer service providers

Currency exchange offices

Audit firms

Leasing companies

Pension funds management

companies

Insurance

Insurance companies

Insurance brokers

OSFI

Insurance agents

Public sector

Municipalities

Government Owned Entities

Public companies

CRA

Federal and Provincial

Governments

Not-for-Profits

Political parties

Foundations

Civil Associations

Religious groups and associations

Foreign associations

Foreign NFP's

Charitable organizations and

associations

Organizational Concept for SBR Implementation

Standard Business Reporting Roles

Management

Create and update legal framework

Coordinate project

activities

Implementation

Establish and maintain technical

framework

Meta data definition

Development

Development of

taxonomies

Define and promote

standards and legislation

Where Information Will be filed

various business and financial regulatory data

Information filers

How the XBRL information will be disseminated

XBRL metadata repository

CRM: Register of annual accounts

SEC: Register of companies with

special reporting obligations

StatscanStock

Exchanges and Securities

Commissions

Other relevant agencies

Regulator X: System

X

Market Analyst X: Analytics systems

Timeframe

Establish an official

Standard Business Reporting

Office

3 months

Establish a Metadata

Repository and National

XBRL Taxonomy

12 months

Implementation of specific

XBRL taxonomy extensions

and projects

18 months

As a practical solution in a number of key government initiatives obtain support for a comprehensive SBR program using XBRL across as many departments and agencies as possible

Establish a core group to manage the project from inception to implementation (Standard Business Reporting Office)

Call to Action

Encourage and engage the departments and agencies to collaborate in the development of the SBR program

Initiate discussion with market intermediaries and suppliers, including software developers, to build the SBR filing requirements seamlessly into their products

Call to Action

Deliver the Roadmap Document to key decision makers in government and regulators

Create an Ottawa-based Working Group that will serve as a catalyst to support and participate in the SBR initiative within the Canadian Government

Formulate an Action Plan that defines roles, responsibilities, tasks and schedules

Next Steps