XBRL Application in China: Listed Companies Information Disclosure

Using XBRLMA Donghao

Assistant Chief Executive OfficerShenzhen Stock Exchange

Agenda

Market at a Glance

Information Disclosure: current practice

The Problems

Project Summary

Objectives

Taxonomies Framework

Implementation approaches

The Benefits

Future development

Market at a glanceTwo national stock exchanges in China:

Shenzhen and Shanghai.

Listed securities: 543@Shenzhen, 828+@Shanghai

Cash market only, products: common stock , treasury bills, bond and funds.

Market Regulator: CSRC.

Mandatory information disclosures

Prospectus

Offering circular

Periodic reports Annual Report, Half-year Report and Quarterly Report

Timely reports Notice on material issues, Notice on M&A, Notice on clarification, etc.

Medias of disclosure: 4 appointed newspapers and 2 appointed websites

Disclosure process

Company Web Site

Adobe Acrobat 5.0.lnk

SSE Web Site

Company Web Site

PeriodicReportingSoftware

CompanyShenzen Stock

Exchange

Internet

Adobe Acrobat 5.0.lnk

CompanyWeb Site

DataIBM Compatible

Disclosure process: periodic reports

Filing Shenzhen:

E-Filing software->structured data Report in PDF (prepared manually)

Shanghai: Report only in PDF (prepared manually)

Registration: computer-assisted

Announcement Newspaper: paper-based document exchange Website: Summary in HTML, full-text in PDF

Disclosure process: timely reports

Filing Fax to Company Management Department of the

Exchange

Approval Paper-based, feedback by fax Check for: conformity to CSRC/ Exchange rules,

procedural correctness, consistency.

Announcement: paper-based exchange of report Newspaper Websites

Disclosure reporting supply chain

Listed companies

CSRC

The Exchanges

Appointed papers, websites

Information vendors

Software vendors

Investors

The Problems

Low data quality

Inconsistency

High market cost

Project Summary

Initiated by the CSRC, with active support from both exchanges.

Using XBRL for information disclosure, with periodic report as a start.

Developed as a national standard, currently released for public comment, scheduled to be released officially at the end of 2003

Pilot deployment early 2004 for quarterly report

Objectives

An extensible standard framework

An open standard

Better disclosure data quality

Information disclosure taxonomy features

Based on XBRL 2.0 Specifications.

Built for current CSRC disclosure requirements, but with provision for future development

Developed our own PFS

Not yet extend from Core IAS Taxonomy

Taxonomy features: continued

Periodic report first

Form-based approach

Item names in Chinese

FrameworkGlobal Common

Document(int-gcd)

CID Core(cn-csrc-core)

CN-PFS（cn-csrc-pfs)

Non-FinancialData

（cn-csrc-nf)

Global Concept（cn-csrc-gc)

Global Terms（cn-csrc-gt)

Others（cn-csrc-other)

import

Prospectus

（cn-csrc-ni)Periodic

（cn-csrc-pr)Timely Report（cn-csrc-tr)

Other Report（cn-csrc-etc)

extendsextends

Implementation approaches

Minimal impact to current infrastructure

Implement XBRL for periodic/timely reporting filing Upgrade companies filing software Publish XBRL instance document

Integrate back end accounting systems and/or regulatory packages with XBRL

Disclosure process using XBRL

Company Web Site

Adobe Acrobat 5.0.lnk

SSE Web Site

Company Web Site

XBRLAuthoring

Application

CompanyShenzen Stock

Exchange

Internet

Adobe Acrobat 5.0.lnk

CompanyWeb Site

DataXBRL file

XBRLTaxonomy

XBRL file

XBRL Instance.lnkXBRL Instance.lnk

The Benefits

Market transparency

Better quality vs. lower price

Flexibility to changes in disclosure rules

The Benefits

The Exchanges

Information vendors

All stakeholders

Listed companies

Open issues

XBRL applicability with non-financial report

Inadequate domain experts involvement

Lack of experienced XBRL experts

No public forum

dhma@sse.org.cn