INFORMATION SYSTEMS AND PROCESSES

XBRL FORMULAE MOTIVATION

Víctor MorillaMember of CEBS XBRL Network

IX European Banking Supervisors XBRL Workshop

Paris September 29th 2008

INFORMATION SYSTEMS AND PROCESSES

INTRODUCTION

XBRL 2.1 provides different types of validation for instance documents:

–Basic XBRL validation–XML Schema validation–Calculation linkbase–XBRL Dimensions

Not enough in most cases:–Basic arithmetic operations: product, division, …–Arithmetic comparisons: item A must be equal to item B, …–Checks for the presence of elements

Derivation of new facts from existing ones is not possibleXBRL Formulae fills the gap

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INFORMATION SYSTEMS AND PROCESSES

ESTIMATED SCHEDULE UPDATE

3

2008

Mar 08First CR

Feb 08Fourth PWD

Jun 08First implementations

Oct 08Second CR

Dec 08 / Jan 09Final Rec

Bank of Spain’s reporting systemimplements Formulae validationfor COREP statements

Bank of Spain’s reporting systemimplements Formulae validationfor COREP statements

INFORMATION SYSTEMS AND PROCESSES

WHY HAS BANK OF SPAIN CHOSEN XBRL FORMULAE?

Bank of Spain is since 2005 in a process of evolution of its system for reception of regulatory information:

Flat text proprietary format XBRLForm oriented model Data oriented model

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INFORMATION SYSTEMS AND PROCESSES

MULTIDIMENSIONAL REPRESENTATION OF THE DATA

5

t

Credit institution

Concept

100 € (prec 3)

DexiaDec 2007

Incomes

100 €100 €

INFORMATION SYSTEMS AND PROCESSES

EVOLUTION

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StatementsStatementsStatements

StatementsStatementsStatements

StatementsStatementsStatements

SIIFSIIF

SIIFSIIF

Validations

ValidationsBasicXBRL

Validations

BasicXBRL

Validations+Formulae

Non XBRL

validations

INFORMATION SYSTEMS AND PROCESSES

CURRENT SITUATION

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StatementsStatementsStatements

SIIFSIIF Validations

BasicXBRL

Validations

BasicXBRL

Validations+

COREP Formulae

StatementsStatemen

tsStatements

Public statementsSolvency

INFORMATION SYSTEMS AND PROCESSES

PROJECT SO FAR

Support of the FWGFormulae linkbase development

European linkbaseSpanish extension

Test cases generationIntegration of Fujitsu formula processor (CR-1 beta implementation)

Parallel development of validations in the legacy system

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INFORMATION SYSTEMS AND PROCESSES

RELATIONSHIPS

INFORMATION SYSTEMS AND PROCESSES

SOME NUMBERS

Spanish COREP is composed of 23 statements (17 based on COREP Europe)

Number of relationships defined by our users: 3.400

Legacy system:-Most validations implemented using a proprietary language 95%-Rest covered by ad-hoc developments: 170

XBRL validations:-Limited to relationships in an instance document. Still not covered:

-Relationships with previous periods-Information not sent in XBRL

-Rest: a high percent of formulae to be expressed in XBRL...

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100%

INFORMATION SYSTEMS AND PROCESSES

PENDING TASKS

Following weeks:Finish the testing of formulae for some credit risk statements10% percent of formulae not working:

CR-1 bugsSome product bugs

Adapt current linkbase to CR-2 syntaxIntegrate new formulae processor (second week of October)

Next year:XBRL Formulae validation crossing information in database

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INFORMATION SYSTEMS AND PROCESSES

BENEFITS

Powerful and flexible solutionBetter maintainability

Striking reduction in the number of rules to maintain:3400 relationships expressed using around 400 XBRL

FormulaeReusability between different actors

Regulators and credit institutions (consistency assertions)Different countries:

European rulesDomestic ones

Data available sooner and improved qualityStandard and formal language to express formulaeCan be validated at the source of information

Market tools availableSupport from software vendors

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INFORMATION SYSTEMS AND PROCESSES

THANKS FOR YOUR ATTENTIONVÍCTOR MORILLA