COREP and XBRL

Report
The
European
Experience
Ignacio Boixo
XBRL Network Co-ordinator
Philadelphia. 6th December 2006
Acknowledgments to non Supervisors:
Walter Hamscher, Charles Hoffman, Ignacio
Hernádez-Ros, Eduardo Carrillo, Allyson
Ugarte, Colm O hAonghusa
Background
“While national supervisory authorities are free to
decide on the technical transmission specifications to
implement the reporting framework, CEBS
considers that XBRL can be a helpful tool in
constructing a harmonised European reporting
mechanism.
CEBS will therefore develop an XBRL platform and
make it available free of charge to national
authorities and supervised institutions. XBRL
taxonomies will be developed for both the COREP
(COmmon REPorting -Basel II-) and FINREP
(FINancial REPorting -IFRS-) frameworks.”
Point 4, Cover Note to the Framework for Common Reporting of the New Solvency Ratio
2
COREP: Structure of the New Basel II Accord
Three
Pillars
I – Capital
requirements
II - Supervisory
review process
Risk weighted
assets
Credit risk
Standardised
Approach
Definition of
capital
Operational
risk
Internal
Ratings-based
Approach
COmmon REPorting
3
Market
risks
III - Market
discipline
COREP: Granularity with the use of dimensions
primary items
allowed for every Business Line
domain member, but only for „Total“
from Event Types dimension
Event Types Dimension
Business Lines Dimension
4
COREP and FINREP Reporting process: in few words
COREP and FINREP both represent EU
Directives by way of multidimensional
data models comprising:
• A set of primary items
• A set of dimensions (and its members)
• The set of possible combinations of
primary items and dimensions (facts)
COREP is a brand-new Regulatory
Reporting data model
multidimensional
data model
FINREP extends IFRS-GP
5
COREP: XBRL taxonomies
Identifying “same meaning” elements in different templates:
•
•
•
Generic database mapping
Reduced maintenance of common elements
Easy identification of relations between templates
common
.
primary
.XSD
i
m
p
o
r
t
s
primary
.XSD
.
.
i
m
p
o
r
t
s
template
.XSD
dimension
.XSD
Each template is represented by:
• one template taxonomy that imports:
• one template specific primary taxonomy that imports:
– from none to several common primary taxonomies
• from none to several dimension taxonomies
6
FINREP: Extending the IFRS-GP taxonomy
IFRS-GP = Read-Only
• Structure: all elements in one schema file.
IFRS-GP Items Imported
IFRS-GP Items not used
Primary Items (IFRS-GP)
Primary Items (p-FINREP)
Dimensional Items
TOTAL
4099
3718
381
1613 1613
83
83
2077 5795
FINREP Items
IFRS-GP:
90% Not
Used
Primary Items:
20% IFRS-GP
80% Extension
Of wich
64% Not Used
7
Flexibility Principle
Global best practices
Basel II, IAS/IFRS …
European Law
9X,XX% best practices + EU requirements
EC 2006/48 & 49 …
Country 1
Country 2
Transposition into
national Legislation
Country 3
Country 25
National Regulation
Sup 1
NCB 2
FSA 3
Sup 25
National Implementation
Report 1
----------------------------------
Report 2
Report 3
Report 25
-------------------------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------
8
XBRL challenge!
Definitely XBRL
European adoption
Germany
•
France
•
Spain
•
Poland
•
Belgium
•
The Netherlands
•
Finland
•
Denmark
•
Ireland
•
Italy (optional format)
•
Definitely Other Format
UK
•
Portugal
•
Austria
•
Interested in XBRL
Hungary, Norway, Estonia,
Greece, Lithuania,
Luxemburg, Bulgaria,
Iceland, Cyprus
No information
Note: Unofficial list based on
author’s feedback at Nov’06
9
Project Management
Workshops:
6 editions *
70 atendees
Core Team:
Supervisors
+
Non Supervisors
DE, ES, IT, BE, GR
10
Preproduction Risk Assessment
# Risk
Probability Impact
1 Relevant test cases
High
Medium
2 Using Dimensions in XBRL
Low
Medium
3 National Extensions
Interoperability
High
Low
4 Core Project Team stability
Low
High
5 Zero budget approach
Medium
Low
6 Versions, Formulas and
Rendering
7 End User Tools for XBRL
High
Low
High
Low
11
1st Technical Meeting of European XBRL
implemented projects: Open Issues
Best Practices and Taxonomy design Mapping guidance
methodology
Closing the reporting model
requirements
Modularisation
Code list in dimensions
Open source XBRL
Cross instance validation
Recognition Process of new
version of taxonomies
Demonstration centre for end users
Rendering
European Coordination
Signature
Feedback on agreement on GCD
Standardisation on scenarios
Formula
Storage of instances and
taxonomies; performance
Maintenance of XBRL Specification
Versioning
12
Next Steps
Go Live: April / July 2007 in most European
Countries
Solvency II: Go live 2010. Basel II-like for the
Committee of European Insurance and
Occupational Pensions Supervisors (CEIOPS).
Potential use of COREP/FINREP concepts
(Basel II and IFRS for Supervision) out of the
European Union
13
Thanks for your attention!
www.c-ebs.org
www.corep.info
Ignacio Boixo
[email protected]
+34 913386452
www.finrep.info
www.wikiXBRL.org

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