COREP XBRL Reporting in Norway Presentation

25.11 2010

Harald Furnes / Aftab Ahmad

04/10/23 Side 2

Agenda

1. Background – the COREP-No project and structure of the Norwegian financial market

2. Overview of the XBRL solution implemented

3. Composing a valid COREP-No XBRL-file from a filled Excel template workbook (using RBME Lite)- Starting from report IRB or SA- Including validation (business rules)

4. Submission process- Log in - Validation and error handling routine

5. Conclusion and future work

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1. Background:COREP project at FSA of Norway

• Decided early (2004) to follow CEBS guidelines on common reporting (COREP-templates)

• Finanstilsynet participated as an observer in CEBS’ COREP group for common European reporting

• The Norwegian banking industry was informed about the COREP-templates and the recommended standard XBRL through informal and formal consultations from 2004 to 2007.

• Finanstilsynet made a final decision in 2006 to follow CEBS guidelines and implement COREP Framework (COREP-templates and XBRL-taxonomies developed by CEBS).

• COREP project initiated in summer 2007.

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1. Background: COREP project at FSA of Norway

• Main objectives:– To follow CEBS’ guidance and advice on Common reporting

(COREP) and technical standard (XBRL)

– To establish a modernized and effective reporting framework/solution

– To establish an infrastructure and competence within the organization to make Finanstilsynet able to extend the framework to other XBRL-reports

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1. Background: COREP project at FSA of Norway

• The goal is to implement the COREP reporting framework based on XBRL, with the possibility of reporting in an alternative format, Excel. (XBRL not mandatory)

• Reasons for XBRL: – Harmonising banking supervision practices in Europe (aiming a harmonised

European reporting mechanism) – Make use of already defined taxonomies (elements, dimensions, linkbases,

validation rules) developed by CEBS.– Modernized data collection system - XBRL is based upon a well established

technology (XML)

• Reasons for alternative format (Excel):– XBRL is not a common standard yet– Finanstilsynet wants to give the reporting institutions time to implement XBRL.– It has not yet been decided whether the alternative reporting format (Excel) will

be a permanent or a temporary solution.

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1. Background: COREP-project at FSA of Norway

- Main activities in the project:- Taxonomy extension: COREP to COREP No (national discretions,

reduction of reporting elements and adding elements)– Solution to convert Excel-templates to XBRL-files, including some business

validation during converting– Internet-portal based on UBMatrix software and some specific

developments made by CIBER Norge, our local vendor, needed to meet the requirements from Finanstilsynet

– Functionality in the portal: Automation of the reporting processes - submission, validation process, data storage, notifications, submission history etc.

– Version management (taxonomies, templates)

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1. Background: Structure in Norway

• 2 different reports (IRB, SA), 7 different groups of reporting institutions, 2 different levels of reporting (solo vs consolidated), 4 different frequencies for reporting

• Resubmission allowed after closing date

IRB SA

Banks 7 131Finance companies and mortgage companies 6 54Holding companies 2 10Securities houses 146

04/10/23 Figure 1 Side 8

XBRL-solution:

COREPCEBS

Finanstilsynets Internettportal

-Log in-Submit

-Control and validate-Processing

-Saving

COREP NO taxonomy

Excel plug-in and template package

xbrl

Excel plug-in and template package

-Validate-Generate xbrl-file

Database

COREP-No

xbrl

Taxonomy-adaptation/

-administration

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2. Overview: Description of activities involved in the reporting process

1. Finanstilsynet implements the Norwegian adaptations to COREP, in the COREP-No taxonomy

2. The COREP-No taxonomy is published on Finanstilsynet’s website. The taxonomy is used by reporting institutions who choose alternative 5a in figure 1.

3. The Excel template with plug-in (which references the taxonomy) is published on Finanstilsynet’s website. The Excel template with plug-in is an alternative to generating a valid COREP-No XBRL file (see 5b in figure 1).

4. Finanstilsynet prepares for submission of new reporting period.

5. The reporting institutions can generate their xbrl files in two different ways:

a. The reporting institution generates an XBRL file directly from their systemsb. Excel template with plug-in: The reporting institution fills out an Excel template as specified in step 3. The

Excel plug-in performs business rules validation and generates a valid XBRL file.

At the end, the XBRL-file is submitted via web portal. During submission, the xbrl-file is validated against the taxonomy

6. Finanstilsynet monitors submissions in the new portal

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3. Composing a COREP-No XBRL-file: The Excel plug-in (RBME Lite)

• Developed in .Net and C#(requires some standard Microsoft components for installation)

Files in the template package: • Excel template workbook (IRB/SA)• Context file (Taxonomy)• Mapping file (Link from taxonomy to cells in excel)• Validation file (Business rules) – will not be needed

when formula linkbase is fully implemented

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3. Composing an XBRL-file from afilled excel template: Demonstration of different variations

• A COREP-No xbrl instance file with errors in business rules

• A COREP-No xbrl instance file without errors in business rules

• A COREP-No xbrl instance file with errors according to the taxonomy and how to identify the errors using validation routine (during submission)

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3. Composing an XBRL-file from a filled excel template: RBME Lite

Generate xbrl instance file

Localize errors

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4. Submission process: EAS – login

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4. Submission process: EAS - submission

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4. Submission process : Error handling routine

All reporting data is uniquely defined by a combination of concept and context

RBME Lite has an error handling routine that can identify the error location (cells) in the Excel template workbook

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4. Submission process : Error handling routine

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4. Submission processMain webpage

http://www.finanstilsynet.no/no/Bank-og-finans/Banker/Tilsyn-og-overvakning/Rapportering/COREP-/

This webpage includes:• Link to the portal • User guidelines• COREP templates• Necessary software

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5. Conclusions• Minimum burden on reporting institutions (by providing the

possibility to convert the existing COREP Excel template to XBRL instance file)

• Save time and resources (for both reporting institutions and supervisor) by enforcing validation before and during submission

• For supervisor: better quality of data and a flexible/standard data format for further analysis and utilization

• Possibility to exchange reported data with others (especially supervisory institutes) who have implemented COREP

• Challenging project (complex taxonomy, immature software and limited skilled resources)

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5. Future work for FSA Norway

• Implement new COREP versions (CRD II, CRD III …)

• Develop solutions for XBRL data analysis and utilization

• Encourage the institutes to implement XBRL

• Possibly develop web services where reporting institutions can submit their instance files directly from their systems

FINANSTILSYNET

Revierstredet 3Postboks 1187 Sentrum

0107 Oslo

www.finanstilsynet.no

Aftab.ahmad@finanstilsynet.noHarald.furnes@finanstilsynet.no