KEY WORDS

1
The NZX Taxonomy
Alan Teixeira General Manager Standards and Q
uality Assurance Institute of Chartered Accountan
ts of New Zealand
May, 2004
2
Session Outline

• Overview of the NZX Taxonomy
• Integrating the NZX Taxonomy
• The feedback loop
• Barriers and challenges

3
The NZX Taxonomy

• The NZX Taxonomy documents the NZX Appendix 1
  form using XBRL

An XBRL taxonomy is a description and
classification system for the contents of
financial statements and other business reporting
documents. XBRL taxonomies can be regarded as
extensions of XML Schema, augmented with written
documentation and a number of additional XML
Linking (XLink) files. Taxonomies represent up to
hundreds of individual business reporting
concepts, mathematical and definitional
relationships among them, along with text labels
in multiple languages, references to
authoritative literature, and information about
how to display each concept to a user.
www.xbrl.org
4
Appendix 1 extract
5
Naming the Elements

• If an item required to be disclosed by NZX is
  also part of the IFRS-GP Taxonomy or the NZ-GAAP
  Taxonomy we use that element name
  

Appendix 1
NZ-GAAP
IFRS-GP
NZX
NZ-GAAP
IFRS-GP
NZX
NZ-GAAP
6
Appendix 1 extract
NZ-GAAP Operating Surplus Deficit Before Tax

7
Appendix 1 extract
IFRS-GP Income Tax Expense (Income)
8
Appendix 1 extract
9
Appendix 1 extract
10
Appendix 1 extract
NZX Operating Surplus (Deficit) Change Percent
age

11
Shared Elements

• The goal is to assist with comparability of data
• Appendix 1 Financial Statement Elements

• Approx 60 other NZX elements
• (related to disclosures outside the financial
  statements)

• NZ is moving to IFRS, increasing
  comparability further

12
The Feedback Loop

• NZX has issued a revised Appendix 1
• Aligned elements and names to NZ GAAP and IFRS
• Redesigned the basic form, for clarity
• XBRL imposes structure on the data capture
  process
  
• Extending a taxonomy and using IFRS and NZ GAAP
  leaves no doubt about what the NZX requires and
  what analysts get
  

13
Barriers and Challenges

• Taxonomy Maintenance
• Building a taxonomy before the IFRS-GP Taxonomy
  is in place
  
• The move to IFRS a major shift for the NZX
• Creating a pure extension taxonomy
• Software
• Ease of use
• Dealing with Tuples and Contexts consistent with
  the Financial Reporting Taxonomy Architecture
  
• Equivalency
• Our goal is to provide a simple element naming
  protocol to users (preparers and analysts), and
  encourage alternative structural
  representations.

14
Summary

• Project First Step has helped us
• Simplify the NZX listing requirements
• Provide feedback to the XBRL Community
• Build a useful tool, that is able to be expanded
  and modified relatively simply
  
• This is an evolving technology, but those with
  insight can already see the power and benefits
  that common terms and the special features of
  XBRL can bring.

15
The NZX Taxonomy
Alan Teixeira General Manager Standards and Q
uality Assurance Institute of Chartered Accountan
ts of New Zealand
May, 2004