CENWS XBRL CWA 1 European Filing Rules CWA

CEN/WS XBRL CWA 1: European Filing Rules CWA 1: Data Point Meta Model 20 February, 2012 Katrin Heinze, Bundesbank Page 1 CWA 1

Objectives Standardisation of the European XBRL architecture and common instance filing rules to cover appropriately the list of harmonisation topics listed in Annex B of the CEN WS XBRL Business Plan Facilitate transparency on the harmonised reporting data across Europe increase interoperability between services and applications overcome lack of harmonisation in the use of the XBRL standards reduce the reporting burden of international acting reporting entities by providing the possiblity to standardize the reporting processes Definition of an European Data Point Methodology to represent the requirements of European reporting frameworks in a data model link the business requirements with the technical transfer format describes the rules to be recognised in the process of modelling Page 2 CWA 1

Level of Harmonisation in Europe Reporting entity Data Point Model Harmonised Not harmonised XBRL Data Format & XBRL Filing ? Not harmonised European Reporting Frameworks Page 3 European Supervisor

Deliverables of CWA 1 Official CEN Deliverables Specification document Non-normative document European XBRL Architecture European Filing Rule set European Data Point Methodology Complementary deliverables (depending on time constraints) Definition of Best Practices on Tagging of cells Versioning of European taxonomies Dealing with European taxonomy extensions Conformance Suite on taxonomy syntax rules Page 4 CWA 1

Organisation of CWA 1 team work Regular conference calls via powwownow. com Cooperation on documents via Wiki technology Regular CEN WS XBRL F 2 F meetings Page 5 CWA 1

Filing rules as first deliverable of CWA 1 Background for the definition of filing rules XBRL is a framework for the definition of data formats provides a high degree of flexibility for the creation of taxonomies and instance documents flexibility requires complex IT systems to react appropriately on all possible variants that the standard allows, like definition of units, accuracy of values, usage of footnotes, periods, identifiers etc. Page 6

European Filing Rules (EFR) Rules to be followed for the preparation and validation of instance documents in an European filing process Place additional constraints on XBRL instance document Advantages XBRL Filing Harmonization on a technical level Enhance the interoperability of IT systems Ease of comparison of reporting data Ease the validation of instance documents Giving rules to reporting entities as guidance Harmonized rules decrease the reporting burden for reporting entities across Europe Codified rules can be automatically tested currently only with proprietary software ? Page 7

Related approaches Approach Year Status Publisher Coverage Rules on FRIS 1 2004 PWD 2 XII 3 XBRL 2. 1 - only XBRL Instances Global Filing Manual 2010 Best Practices SEC, FSA Japan, IFRS XBRL Standard XBRL Instances and Taxonomies European Filing Rules 2013 PWD 2 CEN XBRL Standard XBRL Instances European Filing Rules: part of the CWA 1 deliverables of the standardization process of CEN/WS XBRL De-jure standard by 2014 oriented to reporting entities preparing the filings on basis of EIOPA and EBA taxonomies Recommendations to be adopted by NSAs and European Supervisory Authorities EFL FRIS GFM Page 8 1 2 3 Financial Reporting Instance Standards Public Working Draft XBRL International Inc.

Structure of the Deliverable Currently 45 rules separated in two chapters Filing syntax rules Rules for the complete document to be filed Instance syntax rules Syntax rules for the instance document and its subordinated objects Contexts Facts Units Footnotes Open discussions (small selection) How to ensure validity according to XBRL Formula in huge instance files? Should it be allowed to send partial datasets? Should XML fragments in scenario be prohibited? How to define the language, accept multiple languages in one instance? Page 9

Modeling aspects for standardization Filing rules need to be implemented on sender and receiver side to ensure that the requirements of the filings are met FRIS and GFM define rules in natural language exclusively possible ambiguities while interpreting the rules Rules must be easily understandable by software developers Way forward by using modeling techniques for the defined constraints Current rules are based on texts and represent an informal model Formal models limit the margin of interpretation for persons with mathematical background Formal models are based on an appropriate meta model which provide formal syntax and semantic Aim: Rules should be covered to a high degree in a formal model Page 10

Modeling the European Filing Rules Meta model Object system modeling Model system Object system comprises the clearly delimited real system and also its relevant environment. The object system is the XBRL instance document and the constraints defined on the preparation of XBRL instance documents. The constraints are based on the objects contained in an instance document and the relations among each other. Meta model provides model components, rules on how to combine components and the meaning (semantic) for the components and relations. UML class diagram to describe the structure of the XBRL instance by showing the classes, their attributes and possible methods. OCL (Object Constraint Language) is a formal language for specifications, which refers to an UML model to describe constraints about the objects in the model. Model system must be consistent and complete. It must reflect the structure of the object system. Page 11

Draft model system for EFR Page 12

Data Point Methodology as second deliverable of CWA 1 Definition of a Data Point Model DPM is a dictionary of business concepts and their properties used in tables (explicitly indicated in annotation) identifying the content of every data point and its relation to other data points. Data Point Model e repr rep res Page 13 ted n e s ent ed in in

Concept of Data Point Modelling Page 14 A Data Point as a financial concept is characterized by defining its basic financial meaning (nature) and specifying information of breakdowns in which it is described in different tables or paragraphs of documentation.

Data Point Methodology as second deliverable of CWA 1 Background ambiguity in the understanding of the concept of a Data Point Model missing rule set to be followed in the process of Data Point modelling different constraints depending on the field of application missing abstraction layer to ease the understanding for IT experts missing description of the relations between the different components of a Data Point Model Page 15

Design-oriented models Modelling is an activity Of a person Based on his perception Based on the knowledge of modelling To construct a representation of a real object system Modelling is purposeful and targeted Purpose is defined by the model users Components of the model must be seen as relevant for the purpose Components are selected by the modeller 16 Models can be defined in natural language, semiformal language or by using a formal notation.

Consequences for design-oriented models A model is never objectively right or wrong. Models might at most not appropriate for the purpose it was modelled. Model depends on the decision of the modellers. It is needed to ensure that the model services its purposes by getting a consensus between designers of the model and the users. Two roles in the process of modelling: Knowledge carrier is the domain expert. He knows about the scope of the model and he is able to understand the model. Model designer has modelling experience and appropriate modelling languages. He constructs the model. 17

Consequences for design-oriented models Gain Reflects the scope Understands the model Reflect knowledge carrier Understands the scope Designs the model Describe Validate model designer Reflect: considerations about what needs to be modelled Gain: Information about the object system and intensions of the knowledge carriers (read, ask, search, analyse, check back…) Describe: understand, order, structure, assess the gained information Validate: models need to be reviewed by the knowledge carrier 18

Process of Data Point modelling 19

Representation of the model XBRL Data Format Data Point Model Transformation ? Data Warehouse Constraints for the different fields of application need to be taken into account when Transforming DPMs into XBRL or other data formats Using the dimensional structures in Data Warehouses. 20

Model hierarchy Meta model conforms to scr de Meta model r esc d 21 represented by Model d ibe by conforms to Modelling language defines notation conforms to Object system Meta modelling language defines notation y ib b ed

How to describe Data Point modelling? Meta model conforms to scr de Meta model represented by 22 d ibe by conforms to Modelling language defines notation conforms to Data Point Model Meta modelling language defines notation d r esc y ib b ed

How to describe Data Point modelling? UML Model defines notation conforms to scr de Data Point Meta Model represented by 23 by conforms to UML + OCL defines notation conforms to Data Point Model d ibe UML d r esc y ib b ed

Different perspectives on the model Perspectives reduce the complexity and provide views on different aspects of the object system Perspectives needed to be consistent and complete as a whole Front view Side view Top view Inconsistency modelling Object system 24 Model system

Data Point Meta Model The Data Point Meta Model provides (1) the model components for the creation of a formal models on sets of data points for European supervisory reporting frameworks, (2) rules on how to combine these components and (3) the meaning (semantic) of the components and relations. Similar to a model construction kit for toys it provides the modelling principles with all characteristics available for use by the modeller. 25

Data Point Meta Model - perspectives 26

Constraints on Data Point Models A conformance suite based on this rules could be implemented when the Data Point Model has been transformed in a formal language, like XBRL. 27

Collaborative work progresses in XBRL Wiki http: //xbrlwiki. info/index. php? title=European_Filing_Rules http: //www. wikixbrl. info/index. php? title=European_Data_Po int_Methodology Page 28

How to contribute Take part in the discussions on XBRL Wiki Login request via info@eurofiling. info Via Google group CEN-WS-XBRL-CWA 1 discussion Page 29

Next steps Finalising the work on the Data Point Meta Model Review welcomed! Cookbook on Data Point Modelling Oriented to business experts Explaining the advantage of using Data Point Models Introducing the concept of modelling Explaining the process and method of Data Point Modelling Providing an illustrative example Creation of a normative document for standardising the European Taxonomy Architecture Page 30

Thanks for your attention katrin. heinze@bundesbank. de Comments or questions? Page 31 CWA 1