Taiwan Stock Exchange’s

XBRL Project

Li-Ning Chen

Taiwan Stock Exchange

2009/06/24

■ About TWSEAbout TWSE

■ Overview of Electronic Disclosure Overview of Electronic Disclosure

System System

■ Why XBRL Why XBRL

■ Project ImplementationProject Implementation

■ Future IssuesFuture Issues

■ Taxonomy DevelopmentTaxonomy Development

AgendaAgenda

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About TWSE

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About TWSEAbout TWSE

■ Founded in 1961Founded in 1961■ TWSE is the primary equities market in TaiwanTWSE is the primary equities market in Taiwan■ Products :Products :

• StocksStocks, Warrants, ETFs, TDRs and Corporate , Warrants, ETFs, TDRs and Corporate BondsBonds

■ MSCI upgraded Taiwan to its watch list for MSCI upgraded Taiwan to its watch list for Developed MarketDeveloped Market

■ One of the world’s most active securities One of the world’s most active securities marketsmarkets

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About TWSEAbout TWSE

■ Competitive edges:Competitive edges:• Good P/E Ratio: Good P/E Ratio: 9.8x(2008), and 15.31x(2007)9.8x(2008), and 15.31x(2007)• High Share Turnover Velocity: High Share Turnover Velocity: Market turnover Market turnover

rate is 145.55%(2008), ranked 11rate is 145.55%(2008), ranked 11 thth worldwide and worldwide and 44thth in Asia in Asia

• Excellent Dividend Yield:Excellent Dividend Yield: 9.83%(2008) 9.83%(2008)• Foreign InvestmenForeign Investmentt: Foreigners are major : Foreigners are major

shareholders of many companies, such as shareholders of many companies, such as TSMC(72.57%)*, Delta Electronics(67.27%)*TSMC(72.57%)*, Delta Electronics(67.27%)*

55* Data shown in parentheses were at the end of April, 2009

Overview of Electronic Disclosure System

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Overview of electronic disclosure systemOverview of electronic disclosure system

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Listed Companies One-Stop Portal Investors

Aim to reduce reporting burden and to enable data-sharing

Requirements of disclosure Requirements of disclosure

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Filing via PDF, word copy of financial report with account items of 3 statements:Balance sheetIncome StatementCash Flow Statement(Summary)

Why XBRL?

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Why XBRL?Why XBRL?

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Project Implementation

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Pre-Project MilestonePre-Project Milestone

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Organization of XBRL Steering CommitteeOrganization of XBRL Steering Committee

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Road Map of XBRL ProjectRoad Map of XBRL Project

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The key is to promote wider understanding and acceptance of XBRL among investors, companies and public step by step

Introduction of XBRL Service Demo SiteIntroduction of XBRL Service Demo Site

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Cooperation wCooperation with ith Number of CompaniesNumber of Companies ：： 7777

• 46 of companies from commercial & industrial industry: electronic, cement, 46 of companies from commercial & industrial industry: electronic, cement, food, plastic, textile and steel food, plastic, textile and steel

• 31 of companies from financial industry: banking and insurance 31 of companies from financial industry: banking and insurance Year coveredYear covered ：： 2001~20082001~2008 Financial StatementsFinancial Statements：：

Balance SheetBalance Sheet Income StatementIncome Statement Cash Flow StatementCash Flow Statement

ImplementationImplementation ：： By Converting existing data into XBRL formatBy Converting existing data into XBRL format

Function- Inquiry of StatementsFunction- Inquiry of Statements

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Function- Ratio AnalysisFunction- Ratio Analysis

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Function- Multiple Companies ComparisonFunction- Multiple Companies Comparison

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Project MilestoneProject Milestone

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The key is to reduce the cost and obstacles of listed companies by providing a free and user-friendly tool

Future Issues

2020

Future IssuesFuture Issues

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Taxonomy Development

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TW Taxonomy Development ProcessTW Taxonomy Development Process

Financial Report

Preparing Standard

TW-GAAPStandardize Accounts &Account No.

MOPSOther

successful cases

With accounting academics

Conferences - taxonomy working

group

Consult with CPA Firms

XBRLTeam

FeedbackPublic

hearings

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TaiwanTaxonomy

C&ITaxonomy

FhTaxonomy

BasiTaxonomy

InsTaxonomy

BdTaxonomy

MimTaxonomy

TW Taxonomy FrameworkTW Taxonomy Framework

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Current Taxonomy ScopeCurrent Taxonomy Scope

Instancedocuments

Balance Sheet multi-industry

Income Statement multi-industry

Statement ofStockholder’s

Equity multi-industry

Statement of Cash Flows

multi-industry

XBRL Specification v.2.1 &

Dimension 1.0

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In the near future…In the near future… Already applying for taxonomy recognition and will be

posted shortly Footnotes – relatively simple now

Related-party transactions Mortgaged assets Endorsement disclosure

Accountant’s reports and other complementary disclosures

Company Extensions Prepare for IFRS adoption in 2013

Lessons Learned (1)Lessons Learned (1)

Key Successful Factors:

Education & Education & CommunicationCommunication

Education & Education & CommunicationCommunication

Project ContinuanceProject ContinuanceProject ContinuanceProject Continuance

TechnologyTechnologyTechnologyTechnologyOrganization & Organization & Budget Budget

Organization & Organization & Budget Budget TaxonomyTaxonomyTaxonomyTaxonomy

InceptionInception ConstructionConstructionPlanningPlanning ElaborationElaboration

2004~20062004~20062004~20062004~2006 2006~20082006~20082006~20082006~2008 2008~20092008~20092008~20092008~2009 2009~20102009~20102009~20102009~2010

Pros and cons of “Free tools”: Will reduce the preparer’s adoption cost Will reduce software company’s incentive of investing

in XBRL as well Should be considered as a short-term vehicle

Lessons Learned (2)Lessons Learned (2)

Taiwan seeks for your supports…Taiwan seeks for your supports…

Taiwan seeks to participate in XBRL International in order to both promote the adoption of XBRL in Taiwan and further contribute to the development of global reporting specifications and taxonomies.

We need your great supports, especially our friends from China.

Li-Ning ChenLi-Ning Chen

Email: Email: 1003@twse.com.tw1003@twse.com.tw

Chi-Chun ChouChi-Chun Chou

E-mailE-mail ：：ccchou412@gmail.comccchou412@gmail.com

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Taiwan Stock ExchangeTaiwan Stock Exchange

http://www.twse.com.tw/en/http://www.twse.com.tw/en/

For further information:

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Taiwan Stock Exchangehttp://www.twse.com.tw/en/

For further information:

Li-Ning ChenEmail:

1003@twse.com.tw

CCChouE-mail ：

ccchou412@gmail.com