19th XBRL International Conference

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19th XBRL International ConferenceReducing
regulatory burden with XBRL a catalyst for
better reportingJune 22-25, 2009Paris, France

• Pillar III transparency Corporate Social
  Reporting with XBRL
• at the Banking Supervision Track, June 25
• Enrique Bonsón, Francisco Flores and José Luís
  Lizcano
• Spanish Accounting and Business Administration
  Association AECA

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XBRL, geo-evolution

• 1998 - Hoffman - AICPA - XBRL International -
  global movement
• 2000 University of Huelva national and
  international research
• 2002 - AECA - provisional jurisdiction
• 2004 Bank of Spain - XBRL Spain - CNMV - DGI
  financial sector
• 2007 - Red.es - public sector - private sector
• 2008 RSC taxonomy as a contribution to the
  global XBRL network

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Definitions

• The concept of corporate social responsibility
  (CSR) emerged in the official discourse of the EU
  in 2000.
• Comparative studies of corporate social
  responsibility (CSR) are relatively rare,
  certainly as contrasted with other related
  fields, such as comparative corporate governance
  or comparative corporate law.
• Moreover, the field of empirical CSR research
  generally has been hampered by the lack of a
  consistent definition of the construct of CSR, as
  well as its operationalization and measurement,
  as recently pointed out by McWilliams, Siegel,
  and Wright (2006) and Rodríguez, Siegel, Hillman
  and Eden (2006).
• Cynthia A. Williams and Ruth V. Aguilera

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Definitions

• Lance Moir has collected many other definitions

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Quality guides how to act, and then, how to
report

• CSR can be supported by a broad set of quality
  standards and proposals

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CSR importance

• 6,600,000 results in Google

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CSR importance the EU
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CSR importance UK
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CSR importance
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CSR importance
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CSR importance
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CSR importance

• CSR can be seen as a competitive advantage in the
  XXI century business environments for instance,
  the growing use of green stock market indexes

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CSR importance

• Many recent citations in academic discussion

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CSR importance

• Many recent citations in academic discussion

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Why important for banks and supervisors?

• Previous research in Pillar III
• We have studied the effect of size in
  transparency levels
• Basel II Pillar III requirements tested
• Showing results

The Bank of International Settlements, Basel,
Switzerland
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Additional requirements for banks

• Banks must declare a lot of new information
  obligatory in their public Websites. 88 new
  items ordered by the BIS
• Are there any banks declaring this information in
  advance?
• Only the greater banks satisfy those requirements
  today, in advance to the entry into force of
  Basel II -2008 in EU-.
• If small banks do not declare it, they will fall
  in a lack of transparency and trust in front of
  their depositors and investors. Reasons
  complexity, lack of data sources and efficient
  systems to collect complex financial risk
  information.

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• So, according to this first part, we have
  detected the need for help, specially in the
  smallest banks.
• CSR increases its impact in the financial work.
• Could it be a solution for small banks
• to increase the levels of transparency and also
• to anticipate future evolution on regulations?

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Needs

• CSR is expressed in different formats.
• Presentations
• PDF
• MS Excel spreadsheets
• Video
• All formats detected are mainly human-oriented,
  not tractable information.
• Much work is needed to process CSR information in
  an efficient manner, and also to audit this new
  amount of data.

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CSR reporting heterogeneity a walk
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Some Stoxx companies
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CSR problem

• CSR lacks of a minimum of clarity, is too
  industry-specific and the format in which it is
  based is not suitable to comparisons.
• A double solution
• Semantic agreement
• Digital format

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RSC Taxonomy

• aeca (Spanish Association of Accounting and
  Management) www.aeca.es
• Study in deep international quality standards
  and proposals in different areas covered by the
  CSR umbrella.
• In contact with the GRI consortium
• Taking full advantage of the highly active XBRL
  Spanish Jurisdiction

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RSC Taxonomy

• Indicators grouped as follows
• The effort is to try to quantify as much as
  possible to reinforce comparisons and rankings.

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To set clearly why you omit information

• No full technical advantages, for this first
  version, in order to guarantee the maximum of
  implantation. Dimensions and Formulas will be
  considered in the next future.
• Tuples that allows, for each indicator, to
  provide the information, or to declare if the
  indicator is suitable for the business or not, or
  if the information required is suitable but not
  available.

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RSC Taxonomy

• The Discoverable Taxonomy Set consists of a list
  of three taxonomies that are presented below

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Next future

• RSC Taxonomy is internationally applicable. We
  will try to promote the use and knowledge of this
  proposal.
• RSC could be an industry-validated instrument for
  academic research.
• Some new projects for extensions chemical
  industry, saving banks, public funds
  comptrollers, foundations and other
  non-for-profit entities.
• RSC Taxonomy has been considered for
  international acknowledgement by XBRL
  International.

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Next future

• RSC will converge with the GRI Taxonomy in future
  versions, and will collect as much feedback as
  possible in this first stage.
• RSC will incorporate more suggested quality
  standards and will evolve at the same time than
  the existing set of considered standards.
• RSC will consider the application of some XBRL
  advances, like Dimensions and Formulas. Software
  vendors will be invited to design viewers and
  instance creators.

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Next future

• This taxonomy has been recently acknowledged by
  XBRL International, and we are now starting the
  international implementation stage, when the
  feedback will be essential.
• So, all members and businesses implicated will
  appreciate to enjoy the opportunity to obtain
  your feedback after the conference.

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Many thanks

• RSC Taxonomy
• http//www.xbrl.es/informacion/rsc.html
• AECA
• http//www.aeca.es
• University of Huelva
• http//www.uhu.es
• The International Journal of Digital Accounting
  Research http//www.uhu.es/ijdar
• info_at_aeca.es