ENHANCING IFRS EXTERNAL REPORTING USING XBRL Presented by

ENHANCING IFRS EXTERNAL REPORTING USING XBRL Presented by: Denis DUPRIEZ & Stéphanie ROBERT-LEMARRE Capgemini Group Information Systems Declan JONES Fujitsu Software Corporation, Ireland

Session Overview § Why implement XBRL and Why now? § Compliance and regulatory reporting pressures on companies § Why is XBRL important for IFRS ? § What was the XBRL project undertaken? § Proof of Concept project § IFRS/XBRL Project Objectives and phases § How the project was implemented § XBRL Implementation and tools § Issues encountered § Conclusions and next steps

Clients of external reporting Banks Stakeholders Customers Markets Regulators Information Exchange Competitors Governments Auditors Investors Suppliers

Why XBRL ? “It is exciting to be involved with a truly global web-based solution for capturing and transferring business reporting information, particularly at a time when financial reporting is subject to such a high degree of public scrutiny and change. I am particularly encouraged by the levels of comparability IFRS and XBRL offer. ” IASCF Commercial Director & Chair of XBRL International, Kurt Ramin

Why XBRL is important for IFRS § XBRL and IFRS objectives are mutually compatible in that: § XBRL facilitates the transfer and exchange of financial information § XBRL makes comparability, transparency and benchmarking far more achievable § Using XBRL companies can make their IFRS reports in a more timely fashion

A key tool : the IFRS-GP Taxonomy § XBRL tags for IFRS financial data § Typically reported in annual, semi-annual or quarterly financial disclosures § Balance Sheet § Income statement § Statement of Cash Flows § Statement of Changes in Equity § Accounting Policies and Explanatory Disclosures § IASCF initiative with representatives from the “Big 4” accounting firms and XBRL tool vendors § But IFRS taxonomy is not endorsed in any way by the IASB

IFRS Taxonomy presents key benefits § Major IFRS needs covered § Automatic benchmark between IFRS companies § Identify the relationships between IFRS elements § Specific “customization” for company needs § “X” (Extensible) BRL taxonomy allows company extension § XBRL reinforces data consistency through validation links for internal business rules, cross-checks…

The proof of concept project

Objectives of the Project § Experience § Gain real world practical XBRL implementation experience § Build the knowledge to exploit XBRL within the company § Assess Viability and future value § Demonstrate viability of XBRL § Investigate an approach for future implementation § Investigate future uses and opportunities for XBRL § Be at the leading edge § Be ready and able to publish XBRL data to stakeholders § Limited to: § External reporting only

How this XBRL experience was achieved § XBRL Implementation Phases § Phase 1 – Buy-in § Phase 2 – Preparation & Tool Selection § Phase 3 – Taxonomy extension § Mapping from Co. A to XBRL § Taxonomy Extension § Phase 4 – Create XBRL output Buy-in Preparation Taxonomy Extension XBRL Outputs

Phase 1 - Buy-in § Key players § CFO and Board § Communication Department § Auditors § Others Buy-in

Preparation Phase 2 - Preparation & Tool Selection § § Consolidation tools Taxonomy tools XBRL Report (Instance) tools End user analysis tools

Phase 3 - Taxonomy extension Taxonomy Extension § The IFRS Taxonomy “Space” Bound Volume Industry Extensions Jurisdiction Specific Extensions Company Specific Extensions

Phase 3 - Taxonomy extension Taxonomy Extension § Different Approaches to publish in XBRL § Standard: Use the “official” Taxonomy § Extended: Create a company customized referential and map it with official IFRS taxonomy § Specific: Build a new XBRL taxonomy for company accounts and reports to be published “from scratch”

Phase 3 – Taxonomy extension Taxonomy Extension § Focus on “Extended” Approach § Selection of published consolidated data § Collection of consolidated data § Mapping with official IFRS-GP Taxonomy § Creation of the extended taxonomy using a taxonomy editor tool

XBRL Output Phase 4 : Create instance documents

Instance document XBRL Output Period not appropriate to context Taxonomy view according to presentation linkbase Instance creator; view of values according to contexts

FOCUS ON FUJITSU TOOLS § Right tools for the right person § Different roles have differing requirements § Fujitsu provide XBRL products (Interstage family) and tools aimed at § End Users in the “Taxonomy business” (Defining and Modifying) § End Users of XBRL reports (Reading and Writing) § Software Developers § System Integrators and Solution builders § Interstage XWand comes in Developer, Server and Personal editions

Roles and Tools for XBRL ROLE ACTIVITY TOOL Report Designer e. g. Standards body or report owner Define reporting “concepts” and key inter-relationship. Ensure report meets the needs of users and the business Taxonomy Editor with full link base support Report Creator (Human) People enter facts based on the previously defined report definition / design Instance Creator Report Creator (Computer) Computers generate facts that adhere to previously defined report definition (taxonomy) API Report Usage (Human) People read / view report Instance Viewer Report Usage (Computer) Computers process reports API (Java or C#)

Taxonomy Editor & Instance Creator § Suitable for end users in the “Taxonomy business” (Defining and Extending) § Suitable for users to do “data entry” i. e. create Report Instances and also for viewing reports. § Intuitive GUI tool § Drag and drop support § Web. Dav support § Import and Export from Excel/CSV

The Fujitsu taxonomy tool Linkbase views Schema Elements Element attributes Link information Status/errors

Conclusions

Assessment of Project Objectives § Experience § Project successful within limits set § Knowledge and confidence to go further achieved. § Viability proven § Full life cycle from tools selection, taxonomy extension, mapping and report creation achieved. § Efficiency of XBRL for IFRS disclosure § Map to XBRL once but exploit many times for different reports § Allow automatic processing of financial data § Future value possibilities § Ready and able to publish XBRL data to external parties. § Data collection process from subsidiaries i. e. “internal financial supply chain”

Summary § XBRL and IFRS objectives are mutually compatible § During (or soon after) the IFRS project is a good time to implement XBRL § Use of XBRL leads to efficiencies of reporting throughout the organization § The tools available in the market are mature enough to allow you to start your projects today.

Thank you.