xbrl formulae in practice in regulatory environments: experiences and benefits víctor morilla (bank...
TRANSCRIPT
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 DetailsBank of Spain XBRL Project Details
3
2003
2004
2005
2007
2008
AppraisalCompanies
Project
2006
Public Statements
Nº Participants: > 50Nº Filings/year: > 200Nº Concepts: > 950
Nº Participants: > 300Nº Filings/year: > 7000Nº Concepts: > 650
Moving towards XBRL: Phase 1Moving towards XBRL: Phase 1
LegacyDatabase
Sender
XBRL instance
XBRL FRONT-END
Validdata
Basic XBRL validations &Calculation linkbase
Business rules validations
IT SolutionIT Solution: Phase 1: Phase 1
1 2
3
Data reported in the same XBRL statement
Against other information in database (Ex: previous periods data)
4
2003
2004
2005
2007
2008
AppraisalCompanies
Project
2006
Public Statements
SolvencyInformation
(COREP)
FinancialStatements
(FINREP)
Nº Participants: > 50Nº Filings/year: > 200Nº Concepts: > 950
Nº Participants: > 300Nº Filings/year: > 7000Nº Concepts: > 650
Nº Participants: > 300Nº Filings/year: ~1000Nº Concepts (EU): ~ 950Nº Dimensions (EU): 22Add. Concepts (ES): ~ 553Add. Dimensions (ES): 8
Nº Participants: > 300Nº Concepts (EU): ~ 1.700Nº Dimensions (EU): 12
2009
2010
Moving towards XBRL : Phase 2Moving towards XBRL : Phase 2
Mutual guarantee
Exchange Offices & Appraissal companies
Nº Participants: > 200Nº Concepts (ES): ~ 550Nº Dimensions (ES): 8
Nº Participants: > 200Nº Concepts (ES): ~ 200Nº Dimensions (ES): 10
5
XBRL Formula
LegacyDatabase
Sender
XBRL instance
XBRL FRONT-END
Validdata
Basic XBRL validations Business rules validations
1
23
Data reported XBRL Formula validation
IT SolutionIT Solution: Phase 2: Phase 2
Formula Errors are Formula Errors are informedinformed
Taxonomy viewer
Now (from summer 2008 to present)
Business rules validations
6
Against other information in database (Ex: previous periods data)
Formula linkbase developmentFormula linkbase development
Business Rules document
Documents Reference numbers
& classification
Formulae linkbaseFormulae
Linkbase + corrected
Business Rules
document Analysis
Developing Formulalinkbase
Instance generation
& testing
7
8
Starting point : Financial statements
FinancialStatements
Businessuser
Businessrules
+
Initial business rules
1. Amounts:
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
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)
Input documents (II)Input documents (II)
9
FinancialStatements
Businessuser
Businessrules
+
Business rules
12
They think at an abstract business level
They write in technical terms(cell codes)
Business user
3
IT Analyst
IT Analyst
We infer the conceptual information from cells detail
Formularules
4 We write formula rules in abstract level
Documents in technical terms Documents in technical terms
10
- Consistency, value & existence assertion
- One single formula can solve many rules
Analysis business rules documentAnalysis business rules document
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 1 XBRL formula
(1) Classification
(2) Reference numbers
Reference number: 3035-sv-1
Total positions is equal to the sum of its breakdown by market risk
11
LimitationsLimitations
(Identifying future improvements)
0001>= 0001(previous quarter)
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
- Non-XBRL data
In this case we are detecting them and taking note for developing improvements in the future
There is only the information contained in the instance
12
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
AssertionAssertion
Label: “Operational risk capital requirements not consistent with its breakdown by method applied”
Reference: 3035-sv-1
How errors are informedHow errors are informed
13
Software – Taxonomy viewerSoftware – Taxonomy viewer
14
Software – Taxonomy viewer detailSoftware – Taxonomy viewer detail
(es) prestamos en garantía menor o igual que cartera de negociación(es) prestamos en garantía menor o igual que cartera de negociación
15
- 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 formulasmantainabilityDimensional tables designSubstitutionGroup level design
Conclusions: implicityConclusions: implicity
16
Conclusions: MaintainabilityConclusions: Maintainability
Business
rules
XBRL
Formulae%
COREP 3400 400 11,76%
FINREP 1200 120 10%
Mutual guarantee
(financial)
460 120 26,08%
Mutual guarantee
(solvency)
170 45 26,47%
Capital planning
(financial institutions)
50 9 18%
Total 5280 694 13,14%
5280
694
0
1000
2000
3000
4000
5000
Columnas 3D 1 Columnas 3D 2
Number of business rules
Number of XBRL formulas
17
About 400 XBRL Formula for 3.400 business rules
About 120 working days
= 5,5 months/ one person
(2 months with 4 people part time)
Resources distribution
Conclusions: Resources estimation (I)Conclusions: Resources estimation (I)
Training Debugging Effective work
IT
First project (COREP)
AnalysisDevelopmentTesting
18
40 %30 %
30 %
IT
About 100 XBRL Formula in 8 working days
(analysis & development & tests)
Conclusions: Resources estimation (II)Conclusions: Resources estimation (II)
Trainning DebuggingAnalysis DevelopmentTest
Resources distribution
Currenty (2009)
19
2 % 5 %
33 %
40 %
20 %
2008 2009
COREP developmentstarts
In production COREP
In production FINREP subset
May Sep
Development startedFINREP subset
In production Solvency for Mutual guarantee companies
Development startedMutual guarantee (solvency templates)
Development started Mutual guarantee (financial templates)
In production Capital evaluation report
Development started Financial institutions (capital planning)
In production Mutual guarantee (financial templates)
Development started Exchange Offices & Appraissal companies
Next in production Exchange Offices & Appraissal companies
Nov Jan Feb Mar Apr May Jun Sep
Conclusions:Formulas in taxonomies is a Conclusions:Formulas in taxonomies is a reality nowreality now
20
Sender
XBRL instance
XBRL FRONT-END
Validdata
Basic XBRL validations 1
2
3
Phase 3: Full business rules validation with XBRLPhase 3: Full business rules validation with XBRL
Errors are Errors are communicatedcommunicated
Taxonomy viewer
Business rules validations
Current development
21
Against other information in database(Ex: previous periods data)
Data reported XBRL Formula validation