IRIS BUSINESS SERVICES (INDIA) PVT LTD XBRL Solutions Indian Banking Taxonomies and Its Complexities...

IRIS BUSINESS SERVICES (INDIA) PVT LTDXBRL Solutions

Indian Banking Taxonomies and Its Complexities

IBA – RBI Workshop30th October, 2009

IRIS BUSINESS SERVICES (INDIA) PVT LTDXBRL Solutions 2

The XBRL Journey Has Begun – Where are you?


Consider this..

• Are you an XBRL User?–Why should I get down to the

plumbing ?• Do you want to get into XBRL

Internals ?–How does this help me?


In This Session

• XBRL Taxonomies – A quick look at the concepts

• The Taxonomy building process• XBRL Taxonomies with the RBI• Harmonization with the Indian GAAP

taxonomy• Way Forward


TAXONOMIES


XBRL TaxonomiesA system understandable description and

classification of business and financial termsIt is commonly referred to as dictionary of

business and financial termsContains the universe of accounting and other

related conceptsContains the XBRL properties of the elements


Role of taxonomies


XBRL – A Quick Recap XBRL is an XML based standard


And XML …

XML is a key Internet standard for transmission and interoperability

Electronic transmission is newer than electronic storage

With the growth of the Internet, transmission of data is exploding

No Interoperability problems earlier – lots of interoperability problems now

XML uses "tags" to define data and is self-descriptive

XML has been developed by w3 consortium


Extending XML - XBRLExtending XML - XBRL

• XBRL combines hierarchical xml data with relationships andXBRL combines hierarchical xml data with relationships and references between the data points. references between the data points.

• It uses Xlink technology of linking xml filesIt uses Xlink technology of linking xml files

• It links the data xml files with various other files containingIt links the data xml files with various other files containing definitions, presentation, calculation, references relationships definitions, presentation, calculation, references relationships

• XBRL data files are a set of xml and xsd files.XBRL data files are a set of xml and xsd files.

DataData with tags

hierarchy

Data with tags,Hierarchy &

Relationships

Primitive Data Formats

XML Data Formats XBRL Data Formats


Key Taxonomy ConceptsTaxonomy Built from Schema and linkbasesSchema

– Contains the element declarations– XBRL properties (Data type, Balance type etc.)

Linkbases– Interrelationships between elements– References to regulatory material– Human readable definitions of elements– Five types of linkbases


XBRL Taxonomy & Instance Architecture

XBRL Data

XBRL Data Definition

XBRL Data Relationships


XBRL Taxonomy & Instance Architecture Contd.

• Let’s take following data as sample:• Bajaj Auto Limited, March 31 2009 Report• Statement of Income

(In Rs. Mn.) 2009 2008Income

Sales 90496.9 96899.5

Less: Excise Duty 6127.2 10266.6

Net Sales 84369.4 86632.9

Other Income 4953.2 5055.5

89322.6 91688.4


XBRL Taxonomy & Instance Architecture Contd.

XBRL Data:IncomeTotal 89322.6 Sales 90496.9 Less: Excise Duty 6127.2Net Sales 84369.4Other Income 4953.2

Calculation linkbase: IncomeTotal NetSales +1 Sales +1 Excise -1 OtherIncome +1

Presentation linkbase: IncomeHeading Sales 10 Excise 20 OtherIncome 30 NetSales 40 IncomeTotal 50

Definition linkbase:

Income by Product Product A Product BIncome by Region Asia Africa Europe Latin America

Reference linkbase:IncomeTotal IAS 9Sales IAS 9Excise IAS 2,10

Label linkbase:IncomeTotal Total Income IncomeTotal आय (Hin)IncomeTotal Inc.

Formula:

Expense Ratio = Sales / Expenses

Schema:

Element Name: IncomeAbstract = falseType: monetaryItemypeBalance: Debit

Relationship Layer

DefinitionData Instance: Company A

XBRL Data:IncomeTotal 12234.0 Sales 22345.0 Less: Excise Duty 1000.0Net Sales 3349.0Other Income 1000.8

Data Instance: Company B


DIMENSIONS


Dimensions in XBRL

• The XBRL 2.1 base specification enables storing defined set of dimensions for a data element:

All of these dimensions together uniquely identify the data point 20000


Dimensions in XBRL

• The dimensions specifications released in 2008 enable storing additional dimensions.

• In the previous example: Revenue has two dimensions, By Product & By Region.

• Other Examples:– Investments by Type, by Periodicity.– Advances in India, outside India– Credit Risk On Balance Sheet, Off Balance Sheet


Terminology in Dimensions

• Primary Item• Hypercube• Dimension• Domain and Domain Member• Explicit and Implicit Dimensions• Aggregator-Contributor• All / Not All composers


Few XBRL Taxonomies around the world..

• US-GAAP 2009– Financial Reporting to US SEC

• IFRS 2009– Represents IFRS 2009

• FinRep & Corep– Financial Reporting & BASEL II based Reporting in CEBS*• XBRL GLIndian Taxonomies

• Indian GAAP– Based on IFRS 2006 Architecture– Caters to Indian Accounting Standards– Taxonomy owned by ICAI

• RBI – BASEL II – Based on Corep, though have a different architecture– Used by banks to file their RCA (Returns on Capital Adequacy)– Taxonomy owned by RBI


Taxonomies designed for RBI..

RCA 2 Taxonomy for BASEL II Returns Form A taxonomy for Section 42 returns Taxonomy for GPB returns Taxonomy for Financial Reporting

* Based on the underlying principle – common elements to be defined only once


BUILDING TAXONOMIES…


Steps in taxonomy building

• Identifying the elements• Determining the interrelationship amongst the

elements• Defining the XBRL properties of elements• Modeling the elements and their interrelationship in

the taxonomy• Validating the taxonomy


RCA 2 TAXONOMY


RCA2 taxonomy

Taxonomy tailored to Basel II Reporting Requirements

XBRL 2.1 and Dimensional Specification Compliant

Taxonomy Architecture along COREP linesMulti dimensional in nature


RCA2 taxonomy

Elements 431

Primary elements 123

Dimensions 31

Domain members 262

Hypercube 15

Statistics

Taxonomy files


ICAI TAXONOMIES


ICAI Taxonomy Structure

• Industry-based classification– Commercial and Industrial companies– Banking companies– Non-Banking Financial companies

• Core Schema – Exhaustive list of all element declarations– Common elements defined once

• Distinct extended links for each industry


ICAI : C&I Taxonomy• Statistics

• Prefix : in-gaap• Status : Exposure draft

Extended links 20

Balance Sheet 11

Income Statement 4

Cash Flow Statement 2

Notes to Accounts 1

Clause 41 Requirements 2

Elements 2420 (approx.)


ICAI : Bank Taxonomy

Element identification• Analysis of regulatory literature.

– Banking regulation Act– Annual Reports of 25 banks (documenting common practice)– SEBI Listing agreement– Accounting standards*– Companies Act**These have been referred while defining C&I taxonomy.

• Identifying the common elements, already defined in C&I taxonomy #

# Additional task required for designing subsequent taxonomies


ICAI : Bank Taxonomy

Taxonomy Structure

• Based on IFRS 2006 structure– Banking specific tags have been defined additionally in the core schema– Separate extended links for the bank reporting appended to existing

taxonomy– Basic structure of financial statements and their details, both included in

the same extended link (unlike C&I)– No dimensions have been defined, instead extended links have been used• Primary references – BR Act and RBI circulars


ICAI : Banks Taxonomy• Statistics

• Prefix : in-gaap

Extended links 9

Balance Sheet 4

Income Statement 1

Cash Flow Statement 1

Notes to Accounts 2

Clause 41 Requirements 1

Elements 720 (approx.)

*Excluding dimensions


IFRS 2006 Vs. IFRS 2008IFRS 2006 IFRS 2008

Release date 15th August 2006 24th June 2008

Modularity The files (Schema and linkbases) are located in one folder.

The files are organized based on the IAS and IFRS. There is a core schema containing all the elements defined, and linkages to the different folders for every IAS and IFRS.

Structure There was a common entry point, wherein the users had to select and browse the taxonomy.

The entry point is entity specific and hence has to be created by the user of the taxonomy.

Elements i) 4100 (approx) i) 2700 (approx)

ii) Elements outside the IAS and IFRS (common practices and industry specific) are included in the taxonomy

ii) Elements only from the IAS and IFRS are part of taxonomy

Dimension Vs. Tuples Tuples are used in the taxonomy Dimensions have been included in the taxonomy


HARMONIZING TAXONOMIES – ICAI & RBI


Taxonomy Structure

ICAI Core schema

C&I

NBFC

Banks

RBI Reporting Requirements(ICAI elements +

Common elements)

RCA 2

Form A

GPB

Industry specific entry-points

IRIS BUSINESS SERVICES (INDIA) PVT LTDXBRL Solutions

Taxonomy Proposed prefix

ICAI in-gaap

RBI reporting elements in-bkrp

Report specific elements :

RCA 2 in-bkrp-rca

Form A in-bkrp-frma

GPB in-bkrp-gpb

Prefixes


The XBRL Journey Has Begun – Where are you?


COREP-FINREP TAXONOMIES


Overview :COREP –FINREP Taxonomies

COREP :Common Reporting framework for the new solvency ratio for credit institutions

FINREPFinancial reporting framework for credit institutions


COREP –FINREP taxonomies

FINREP Structure• Imports elements from IFRS 2006 taxonomy• Defined additional elements for financial reporting• The relationships (or the linkbases) are newly defined• Usage of dimensions• Prefix of extended elements – p-FINREP


COREP –FINREP taxonomies

COREP structure• Designed for a multidimensional data• Concept of separate primary and dimensional

taxonomies• Within primary taxonomies, further classification of

common taxonomy and specific taxonomy• Prefixes :

– d- :dimensional taxonomies,– p- : primary specific taxonomy– p-cm : primary common taxonomy


QUESTIONS


THANK YOU!

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