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Progress in BOJ’s XBRL Pilot Project

Nov. 2004

　 Yoshiaki Wada　 Bank Examination and Surveillance Department

　 Bank of Japan

© 2004 Bank of Japan

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1 ． The role of the BOJ within Japanese Financial Systems and the progress in the XBRL pilot project

• BOJ’s branch network

© 2004 Bank of Japan

• Project history

• The BOJ way to provide and receive different types of information and apply them to FSI supervision

• Range of FSIs covered by BOJ examination / monitoring, and the participants in the pilot project

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BOJ’s branches network

© 2004 Bank of Japan

● Head Office : Tokyo Branches 　 : Kushiro, Sapporo, Hakodate, Aomori, Akita Sendai, Fukushima, Maebashi, Yokohama, Niigata, Kanazawa, Kofu, Matsumoto, Shizuoka, Nagoya, Kyoto, Osaka Kobe, Okayama, Hiroshima, Matsue, Shimonoseki, Takamatsu, Matsuyama, Kochi, Kitakyusyu, Fukuoka, Oita, Nagasaki, Kumamoto, Kagoshima, Naha

Tokyo

Maebashi

Fukushima

Sendai

Aomori

Kushiro

Sapporo

Hakodate

Akita

Niigata

Matsumoto

Kanazawa

Okayama

Kobe

MatsueHiroshima

Shimonoseki

Kitakyusyu

Fukuoka

Nagasaki

KumamotoKagoshima

OitaMatsuyama

Kochi Takamatsu

Osaka

Kyoto

Nagoya

Shizuoka

Kofu

Yokohama

Naha

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Range of FSIs covered by BOJ examination / monitoring, and the participants to the pilot project

© 2004 Bank of Japan

about 560 FSIs (end of March 2004)

Major Banks

Regional Banks

Shinkin Banks

Foreign Banks

Securities Firm etc.

Test Phase 1

Test Phase 2( 31 participants )

( 4 participants )

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Project history

© 2004 Bank of Japan

Preparation for the test Phase 1 of the test

Session with 4 Major Banks Test part

June, 2003 　　　 July – Sept. 　　 Oct. 　　Nov. – Dec. January, 2004 　　March

Phase 2 of the test

InvestigationHearing

Taxonomycreation

Functional development

Join XBRL -Japan

Briefing toexecutives

Tool evaluation

Part 1 Part 2

July 　　　　 Sept.

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The BOJ way to provide and receive different types of information and apply them to FSI supervision

© 2004 Bank of Japan

Applicability of XBRL

BOJBOJ

FSIFSI

CorporationCorporation

BOJ net

Reporting systems, incl. VPN online data gathering system

Ho

st syste

mP

C system

File format conversion

Character code conversion

DBs

original format

Individuals

Files

Papers

Host computerFile format conversionCharacter code

conversionKey entry

Character code conversion

PC

Accounting table creation

File creation

　 StorageIntranet

Application to FSI supervision

(data format for printing)

Vertical andhorizontal position and

data specification

Financial DB

Text format

Excel, Word, Text, CSV, XML Paper-based

Publication of a variety of statistics

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2 ． Understanding the pilot project

•Project overview

© 2004 Bank of Japan

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•Concept of BOJ’s VPN system

•Taxonomy structure

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Project overview ①　 Purpose　　　　　

　　

　　　

© 2004 Bank of Japan

・ Promote understanding of XBRL within the FSIs

・ Phase 1 　　──────　 4 Mega banks （ XBRL- Japan member ）

　 Participants

　 Timing of the test

・ Verify both the technical and operational usefulness of XBRL

・ Phase1 　：　　 December 2003 to March 2004

・ Phase　 2 　　　　　　　　　　　 (Part 2) ── 4 Mega banks

･ Phase2 　：　 (Part 1) July 2004

(Part 2) Sept 2004

(Part 1) ── 　 31 local and other banks （ non XBRL- Japan member ）

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© 2004 Bank of Japan

Wanted!Wanted!

XBRLXBRL Data Communication Test – Participant InvitationData Communication Test – Participant InvitationXBRLXBRL Data Communication Test – Participant InvitationData Communication Test – Participant Invitation

(Scope of Test)

- Create an XBRL data file and transmit to the Bank of Japan

(Date of Execution /Recruitment Period)

- July / 17-25th June

(Number and Type of Participants)

- 20 BOJ Partner FSIs

(Application)

-Yoshiaki Wada, Bank Examination and Surveillance Department, BOJ

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Project overview ②　

© 2004 Bank of Japan

（ Phase 1 ）･ Test by XBRL-Japan member banks

・ Data transfer between the BOJ and FSIs using XBRL format

　 Scope of the test

　・ Accounting tables for

　 Target reports

（ Phase 2 ）

　 　　　･ P/L tables for annual/half year business report (Part 2 of Phase2)

　 monthly balances　 　 (Phase1 ～ Part 1 of Phase2)

･ Test by banks including non XBRL- Japan member

･ Test of newly structured taxonomy

　･ Possibility of using VPN system for secure data transfer

･ Test of XBRL Spec 2.1

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Concept of BOJ’s VPN system

© 2004 Bank of Japan

IP-VPN　

net-

work

BOJ

Up load of reporting forms

Down load of reported data

Reporting　　forms

FSIs

PC in FSIsPC　in　BOJ

Data reception

Data decryption

Virus test

Down load of reporting forms

Datatransmission

Reporting data input

Data encryption

ＩＰ－ＶＰＮ　：　Ｉｎｔｅｒｎｅｔ　Ｐｒｏｔｏｃｏｌ　－　Ｖｉｒｔｕａｌ　Ｐｒｉｖａｔｅ　Ｎｅｔｗｏｒｋ

　　　

Server　　　　　system

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Taxonomy Structure Methodology ①

　

Each account varies according to FSI business type　　　

© 2004 Bank of Japan

• The taxonomy for internal use has a structure which maps the roles of each type of maintenance engineer to enable job allotment.

• Taxonomy for internal use is composed of a common taxonomycommon taxonomy for all financial institutions and a delta taxonomydelta taxonomy according to the business type.

Definition of the concept itself is separated from the relationship between concepts

　 Ease of maintenance is of primary consideration

　 Applicability to other reports

• The methodology of separating the common and delta taxonomy is applicable, for example, to the annual business report, for changes to due date and in reporting data types.

• The structure is composed of “Taxonomy for internal useTaxonomy for internal use” (concept itself defined with schema, label link and reference link) and “Reporting TaxonomyReporting Taxonomy” (relationships between concepts defined using presentation link , calculation link and definition link).

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Taxonomy Structure Methodology ②

© 2004 Bank of Japan

Taxonomy　common　to　all　FSI

Taxonomy　common　to　A ～C

Taxonomy　common　to　A ～ C　&　D

Taxonomy　common　to　domestic　FSI

Taxonomy　common　to　A ～ B

Taxonomy　common　to　D ～E

Taxonomy　for　accounting　item　a

Taxonomy　 for　 accounting　item　b

Taxonomy　 common　 to　B ～ C

D　Taxonomy

E　Taxonomy

C taxonomy

Taxonomy　common　to　A ～ B　&　D

Type　 A１

Type　A2Type　B Type　C Type　 D１

Type　D2 Type　E

L

S Schema

R

P

C

D

Label-link　Reference-link

　Presentation-link

Calculation-link

　Definition-link

C

S

D

PL

R

Taxonomy for internal use

C

S

D

PL

R

Taxonomy for reporting

Taxonomy set for FSIs(DTS)

Set the schema, label -link, reference-link.

Set the presentation-link, calculation-link and definition-link.

Import

Taxonomy Structure

Taxonomy for reporting consists of necessary internal taxonomy units.

Delta Taxonomy

Taxonomy for reporting, designed

for each FSI type

Taxonomy for internal use

Common Taxonomy

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3 ． Test summary

• Test results and summary of Phase 2

• Evaluation of Phase 2 by test participant FSIs

© 2004 Bank of Japan

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Results and summary of Phase 2

© 2004 Bank of Japan

Phase 2 pilot project - Part 1 （ July ）

Need for reorganization to accept XBRL data

Importance of validation

Study of storage and re-use of XBRL data

Phase 2 pilot project - Part2 （ Sept. ）

Expectations for Expectations for practical usepractical use

Understanding of XBRL penetrates to a broader range of FSIs

Both the technical and operational usefulness of XBRL is confirmed

• Created the taxonomy of the monthly accounting table using Spec. 2.0 (Bank of Japan)

• Created the taxonomy for the annual business report using Spec. 2.1 (Bank of Japan)

• Able to generate an instance in XBRL format without any problem using Excel table which includes the monthly accounting table (FSIs)• Received the data and could re-create the table (Bank of Japan)

• Able to generate an instance in XBRL format without any problem using Excel table which includes the annual business report 　(FSIs)

• The data was received online and could re-create the table (Bank of Japan)

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Response to the Phase 2 questionnaire ①

© 2004 Bank of Japan

Summary of response 　 (replies from 31 participating FSIs)

Expanding recognition

of XBRL

① 　 Enables data validity check

② 　 Enables the addition and checking of notes to the items

③ Enable verification of the link documents such as item definition etc.

- XBRL name recognition 　　　　　　　　　　　　 ・・・Approx. 80%Approx. 80%

- Felt the need to study XBRL through the pilot project ・・・Approx. 60%Approx. 60%

- Main points where FSI felt the benefits of XBRL:

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Response to the Phase 2 questionnaire ②

© 2004 Bank of Japan

Reasons for participation in the pilot project

(i) Study of values and issues 　 --- Analyzes and evaluates what type of actual value and impact can be obtained through the use of XBRL(ii) Understanding and confirmation --- Able to learn about XBRL

(iii) Ease of participation --- Conditions to participate were simple, and so participation was easy.

(iv) Experience to use the tools --- Wanted to use the XBRL conversion tools

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Response to the Phase 2 questionnaire ③

© 2004 Bank of Japan

Businesses where XBRL could be applied in the future

• Data storage and analysis

• External report generation

• In-house data collaboration

- The kinds of businesses that would be able to use XBRL

t

• Loan bsiness

• In-house account settlement

• Auditing

• Public relations

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And now for the last word ---

© 2004 Bank of Japan

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Thank you for listening.

© 2004 Bank of Japan

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