19th XBRL International Conference

1
19th XBRL International ConferenceReducing
regulatory burden with XBRL a catalyst for
better reportingJune 22-25, 2009Paris, France

• XBRL Formulae in Practice in Regulatory
  Environments
• Experiences and Benefits

Víctor Morilla (Bank of Spain) Manuel Rodriguez
Moira Lorenzo (Atos Origin)
2
Bank of Spain XBRL Project Details
3
Moving towards XBRL Phase 1
Nº Participants gt 300 Nº Filings/year gt 7000 Nº
Concepts gt 650
Nº Participants gt 50 Nº Filings/year gt 200 Nº
Concepts gt 950
Public Statements
Appraisal Companies Project
4
IT Solution Phase 1
Legacy Database
Valid data
XBRL instance
XBRL FRONT-END

• Business rules validations

• Basic XBRL validations
• Calculation linkbase

1
Data reported in the same XBRL statement
2
3

• Against other information in database
• (Ex previous periods data)

5
Moving towards XBRL Phase 2
Nº Participants gt 300 Nº Concepts (EU)
1.700 Nº Dimensions (EU) 12
Nº Participants gt 300 Nº Filings/year 1000 Nº
Concepts (EU) 950 Nº Dimensions (EU) 22 Add.
Concepts (ES) 553 Add. Dimensions (ES) 8
Nº Participants gt 200 Nº Concepts (ES) 200 Nº
Dimensions (ES) 10
Financial Statements (FINREP)
Exchange Offices Appraissal companies
Solvency Information (COREP)
Nº Participants gt 300 Nº Filings/year gt 7000 Nº
Concepts gt 650
Mutual guarantee
Nº Participants gt 50 Nº Filings/year gt 200 Nº
Concepts gt 950
Public Statements
Nº Participants gt 200 Nº Concepts (ES) 550 Nº
Dimensions (ES) 8
XBRL Formula
Appraisal Companies Project
5
6
IT Solution Phase 2
Now (from summer 2008 to present)
Legacy Database
Valid data
XBRL instance
XBRL FRONT-END
Taxonomy viewer
1

• Basic XBRL validations

• Business rules validations

Formula Errors are informed
Data reported XBRL Formula validation

• Against other information in database
• (Ex previous periods data)

3

• Business rules validations

2
7
Formula linkbase development
Business Rules document Analysis
Business Rules document
Documents Reference numbers classification
Developing Formula linkbase
Instance generation testing
Formulae linkbase
Formulae Linkbase corrected
8
Input documents (I)

Starting point Financial statements
9
Input documents (II)
Initial business rules

• Amounts
• 000100050010001500180019
• 000500060007
• 001000110012
• 00210025003000350036003700380039
• 002500260027
• 003000310032
• 0041004500500057
• 0061006600700077
• 2. Other internal relationship
• At least one of the keys 0001 and 0021 must
  be different from 0
• 0041lt0061
• 0045lt0065
• 0060lt0070
• 0001gt 0001(previous quarter)

10
Documents in technical terms
Business user
They write in technical terms (cell codes)
2
1
Business rules
They think at an abstract business level
IT Analyst
Formula rules
3
We infer the conceptual information from cells
detail
We write formula rules in abstract level
4
IT Analyst
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Analysis business rules document

• Consistency, value existence assertion
• One single formula can solve many rules

(1) Classification
(2) Reference numbers
Business rules (legacy system)
000100050010001500180019
000500060007 001000110012
00210025003000350036003700380039
002500260027 003000310032
0041004500500057 0061006600700077
Reference number 3035-sv-1
Total positions is equal to the sum of its
breakdown by market risk
1 XBRL formula
8 business rules
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Limitations
There is only the information contained in the
instance
(Identifying future improvements)

• 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

0001gt 0001(previous quarter)
In this case we are detecting them and taking
note for developing improvements in the future
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How errors are informed
Assertion
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
Reference 3035-sv-1
Label Operational risk capital requirements
not consistent with its breakdown by method
applied
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Software Taxonomy viewer
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Software Taxonomy viewer detail
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Conclusions implicity

• 85 of formulas follow very simple patterns
• Arithmetic expressions (A B C)
• Comparison expressions (A lt B C)
• Conditional expressions (if A gt B then C D E)
• A good taxonomy design (a good data model)
  improves the formulasmantainability
• Dimensional tables design
• SubstitutionGroup level design

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Conclusions 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
Number of business rules
Number of XBRL formulas
18
Conclusions Resources estimation (I)
First project (COREP)
IT
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
40
30
30
Analysis Development Testing
19
Conclusions Resources estimation (II)
Currenty (2009)
IT
About 100 XBRL Formula in 8 working
days (analysis development tests)
Resources distribution
2
5
20
33
40
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ConclusionsFormulas in taxonomies is a reality
now
2008
2009
May
Sep
Nov
Jan
Feb
Mar
Apr
May
Jun
Sep
In production FINREP subset
In production COREP
In production Mutual guarantee (financial
templates)
Development started Mutual guarantee (solvency
templates)
COREP development starts
Development started FINREP subset
Next in production Exchange Offices
Appraissal companies
In production Solvency for Mutual guarantee
companies
Development started Financial institutions
(capital planning)
Development started Mutual guarantee (financial
templates)
In production Capital evaluation report
Development started Exchange Offices Appraissal
companies
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Phase 3 Full business rules validation with XBRL
Current development
Valid data
XBRL instance
XBRL FRONT-END
Taxonomy viewer

• Basic XBRL validations

1
Errors are communicated

• Business rules validations

Data reported XBRL Formula validation
2
3

• Against other information in database
• (Ex previous periods data)