Adopting XBRL in the Financial Statements Data Pool of Deutsche Bundesbank Dominik Elgg Deutsche...

Adopting XBRL

in the

Financial Statements Data Pool

of Deutsche Bundesbank

Dominik Elgg

Deutsche BundesbankStatistics Department

Contents I. The Financial Statements Data Pool

1. The project 2. Benefits from pool 3. Considered data and benchmark statistics 4. Participation and status

II. XBRL as data format 1. Information chain 2. Issues and problems - Solution through XBRL 3. Special requirements and examples 4. Status and outlook

III. Advantages and challenges from a technical and programming perspective.

I. Financial Statements Data PoolThe project

Joint project of Bundesbank and German financial institutes

Idea: Pool of financial statements which is filled by several contributors

Project rests upon the principles: Voluntary participation Reciprocity Data protection (anonymous data) Low costs for participants.

Benefits from pool Participants: extensive benchmark statistics

(ratios) Advantage of enlarged dataset

Bundesbank: continuation and extension of corporate financial statements statistics Dataset is basis for micro- and macroeconomic

analysesProviding information (statistics) to the public

Compensation for reduction of Bundesbank‘s own dataset.

Considered data

Financial statements of German companies:

Only individual accounts (no consolidated accounts so far)

Basically data on income statement and balance sheet Non-financial companies Only based on German Commercial Code.

Benchmark statistics (financial ratios and differentiation)

More than 180 ratios Preparation by sector, size, legal form, region and year Differentiation as far as data protection allows Quartiles as statistical parameters Quarterly update of the statistic

Calculation of ratios for nearly 70.000 groups per year.

Example

Informations from the Benchmark statistics

Sector Size Legal form Year Quartile 1 Quartile 2 Quartile 3

Car supplierSales > €25m and < €50m

Corporation 2003 11,00% 20,0% 36,0%

Analysis at participating institutes

Company Equity ratioCar supplier 1 23,0%Car supplier 2 17,0%Car supplier 3 41,0%

Equity funding below averageExcellent equity funding

Equity ratioGroup

Equity funding above averageAssessment

Participation Banks Credit insurers Datev Other institutes with considerable datasets Bundesbank

Current participation: 9.

Current status Database started 4th quarter 2003

125.000 financial statements per year (gross)

Deduction of duplicates Deduction of deficient data

More than 85.000 financial statements per year (net)

Shipment of 4 benchmark statistics so far.

II. XBRL as data format

Two different possibilities for sending data to Bundesbank:

XBRL

Alternative: plain text format.

Information chain

POOLFinancial statement

Financial statementFinancial statement

Financial statementFinancial statement

BundesbankPartner• Banks• Credit insurers• etc.

Financial statements of German non-financial companies

Statistics

Database

Ratios• Cash Flow• Profitability• Leverage• ...

... by legal form

... by sector

... by size

... by region

... by year

XBRL

Issues and problems

Participating institutes have different recording systems

Partners have different guidelines for keying data into the recording system

Bias in the data Problems in the identification process of duplicates.

Why XBRL?

Standardised, non-proprietary format for exchanging financial statements data

Data which comes directly from companies is qualitatively better than data that is manually keyed in into the recording system

In the long-term XBRL might lead to the same data scheme and guidelines, as a basis for analysing financial statements.

Scheme of pool dataset (relational database) is based on German taxonomy.

The issue of data quality - examples

Several data sources with different data quality Strict quality checks About 10% loss of data in historic data due to big

errors, maximum of 5% in actual data Thousands of minor errors

With the XBRL test data we received so far: 0 errors.

Specific requirements on data format

Anonymous data (data protection) Separation of characteristics (e.g. legal form) from

accounting entries (data protection) Add-on items not represented in taxonomy

Creation of an extended XML/XBRL framework while keeping the advantages of XBRL.

<?xml version="1.0" encoding="iso-8859-1" standalone="no"?>

<xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd">

<numericContext id=“nc1“ precision=“5" cwa="false"> <entity> <identifier scheme="www.dax.de">ABC S.A</identifier> </entity> <period> <startDate>2000-01-01</startDate> <endDate>2000-12-31</endDate> </period> <unit> <measure>ISO4217:EUR</measure> </unit> </numericContext>

<t:bs.ass numericContext=" nc1">11000000</t:bs.ass> <!-- Total Assets--> <t:bs.ass.fixAss numericContext=" nc1">8000000</t:bs.ass.fixAss> <!-- Non current assets --> <t:bs.ass.currAss numericContext=" nc1">2000000</t:bs.ass.currAss> <!-- Current assets--> ... <!-- ... --> <t:bs.eqLiab numericContext=" nc1">11000000</t:bs.eqLiab> <!-- Total equity & liabilities --> <t:bs.eqLiab.equity numericContext=" nc1">3000000</t:bs.eqLiab.equity> <!-- Equity --> <t:bs.eqLiab.liab numericContext=" nc1">7000000</t:bs.eqLiab.liab> <!-- Liabilities --> ... <!-- ... --></xbrl>

Example XBRL Instance Document

<?xml version="1.0" encoding="iso-8859-1" standalone="no"?>

<xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd">

<numericContext id=“nc1“ precision=“5" cwa="false"> <entity> <identifier scheme="www.dax.de">ABC AG</identifier> </entity> <period> <startDate>2000-01-01</startDate> <endDate>2000-12-31</endDate> </period> <unit> <measure>ISO4217:EUR</measure> </unit> </numericContext>

<t:bs.ass numericContext=" nc1">11000000</t:bs.ass> <!-- Total Assets --> <t:bs.ass.fixAss numericContext=" nc1">8000000</t:bs.ass.fixAss> <!-- Non current assets --> <t:bs.ass.currAss numericContext=" nc1">2000000</t:bs.ass.currAss> <!-- Current assets --> ... <!-- ... --> <t:bs.eqLiab numericContext=" nc1">11000000</t:bs.eqLiab> <!-- Total equity & liabilities --> <t:bs.eqLiab.equity numericContext=" nc1">3000000</t:bs.eqLiab.equity> <!-- Equity --> <t:bs.eqLiab.liab numericContext=" nc1">7000000</t:bs.eqLiab.liab> <!-- Liabilities --> ... <!-- ... --></xbrl>

Accounting entries

<?xml version="1.0" encoding="iso-8859-1" standalone="no"?>

<xbrl xmlns="http://www.xbrl.org/2001/instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xsi:schemaLocation="http://www.xbrl.org/german/ap/ci/2002-02-15 german_ap.xsd">

<numericContext id=“nc1“ precision=“5" cwa="false"> <entity> <identifier scheme="www.dax.de">ABC AG</identifier> </entity> <period> <startDate>2000-01-01</startDate> <endDate>2000-12-31</endDate> </period> <unit> <measure>ISO4217:EUR</measure> </unit> </numericContext>

<t:bs.ass numericContext=" nc1">11000000</t:bs.ass> <!-- Total Assets --> <t:bs.ass.fixAss numericContext=" nc1">8000000</t:bs.ass.fixAss> <!-- Non current assets --> <t:bs.ass.currAss numericContext=" nc1">2000000</t:bs.ass.currAss> <!-- Current assets --> ... <!-- ... --> <t:bs.eqLiab numericContext=" nc1">11000000</t:bs.eqLiab> <!-- Total equity & liabilities --> <t:bs.eqLiab.equity numericContext=" nc1">3000000</t:bs.eqLiab.equity> <!-- Equity --> <t:bs.eqLiab.liab numericContext=" nc1">7000000</t:bs.eqLiab.liab> <!-- Liabilities --> ... <!-- ... --></xbrl>

Context

<?xml version="1.0" encoding="ISO-8859-1" ?> - <financialStatementDelivery xmlns="http://www.bundesbank.de/spool/datenlieferung/2003-01-01" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xbrli="http://www.xbrl.org/2001/instance" xmlns:t="http://www.xbrl.org/german/ap/ci/2002-02-15" xmlns:ISO4217="http://www.iso.org/4217" xsi:schemaLocation="http://www.bundesbank.de/spool/datenlieferung/2003-01-01 spool.xsd" partnerName="Testpartner" partnerId=“0000000" creationDate="2003-01-01" deliveryId="1"> - <financialStatement companyId="1" yearMonth="2000-12"> <reportType>h</reportType> <reportStatus>e</reportStatus> <incomeStatementType>g</incomeStatementType> <currency>DEM</currency> - <xbrli:xbrl> - <xbrli:numericContext id="nc1" precision="8" cwa="false"> - <xbrli:entity> <xbrli:identifier scheme="urn:www.partner.de/">3,1/3</xbrli:identifier> </xbrli:entity> - <xbrli:period> <xbrli:startDate>2000-01-01</xbrli:startDate> <xbrli:endDate>2000-12-31</xbrli:endDate> </xbrli:period> - <xbrli:unit> <xbrli:measure>ISO4217:DEM</xbrli:measure> </xbrli:unit> </xbrli:numericContext> <t:bs.ass numericContext="nc1">1338066</t:bs.ass> <t:bs.ass.accountingConvenience numericContext="nc1">0</t:bs.ass.accountingConvenience> <t:bs.ass.accountingConvenience.changeDem2Eur numericContext="nc1">0</t:bs.ass.accountingConvenience.changeDem2Eur> <t:bs.ass.accountingConvenience.startUpCost numericContext="nc1">0</t:bs.ass.accountingConvenience.startUpCost> <t:bs.ass.currAss numericContext="nc1">749385</t:bs.ass.currAss> <t:bs.ass.currAss.cashEquiv numericContext="nc1">259760</t:bs.ass.currAss.cashEquiv>

Extended XML/XBRL framework(accounting entries)

Status of XBRL project in data pool

Implementation completed Successful tests with test data and authentic data

As the first partner, Datev will send XBRL data from this quarter on.

III. Advantages and challengesPros and Cons from a programming perspective:

Possible validation on sender side Flexibility of XML Lower effort of programming Minor error rate XBRL as non-proprietary format

Current ‘Hybrid‘ format Some familiarisation with XBRL/XML Dependency on external XBRL-specification File size.

Advantages from an accounting perspective

Structured data instead of paper or PDF’s Non-proprietary standard Separation of content from presentation Flexibility: taxonomies can be created individually Independent of information type (e.g. accounting

standard) XML as basis is rather easy to understand Knowledge transfer: taxonomies can be created

together (e.g. 1001 working groups filled by auditors, data receivers, software companies).

Challenges from an accounting perspective

Dependency on an independent organisation (e.g. enduring specification)

[Dependency on software (companies)] Sender has to be convinced of using XBRL.

Outlook

Integration of IFRS financial statements:

Relevant for individual accounts from 2005 on (2006). Potential integration of consolidated accounts

Use of IFRS (and SME-IFRS) taxonomy Use of results of III WG on IFRS impact and CBSO

databases (group of Manuel Ortega - Banco de España)

Use of potential extensions of German jurisdiction.

Vision for the next 5 to 10 years

XBRL is used by all participants: sending and receiving

10.000 to 20.000 financial statements of German companies based on SME-IFRS that can be compared to their European counterpart.

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Questions & AnswersQuestions & Answers

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Contact informationContact information

Dominik Elgg

DEUTSCHE BUNDESBANK

Financial Statements Data Pool

Statistics Department

Tel. +49 69 9566 8589

Email: dominik.elgg@bundesbank.de

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Thank you very much!Thank you very much!

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