Transcript Document
The Yellow Brick Road of XBRL Adopting the XBRL Data Standard, Separating Practice from Theory Jon Wisnieski November 5, 2003 The Setting Three federal regulators similar but separate requirements and responsibilities 8,300 banks nationwide Quarterly financial data Collected, validated, analyzed and distributed Cycle that takes 60+ days The Business Objectives Decrease the time spend Decrease the cost of data collection Adopt open standards to increase industry transparency Create a flexible system Leverage private sector strengths and relationships Essential Elements of the Solution Develop a comprehensive data repository—one system of record Create an extensible platform, shared by the FDIC, OCC and FRB Adopt XBRL standards to facilitate the movement of data End our legacy application approach 3rd party hosting of a shared facility Re-engineer business processes to leverage automation Some Project History Collaborated with multiple stakeholders from the start: Interagency discussions Industry Roundtables Request for Information (RFI) Formed interagency Steering Committee what was needed, but not the “how” Request for Proposal (August 2002) Today’s Picture Unisys Corporation—design, build and maintain Aggressive schedule Established industry focus groups Leveraged industry experts XBRL Software vendors, Industry trade groups Project Status Requirements have been defined and documented Programming is underway Industry-based focus groups have been convened First functional pilot anticipated by early 2004 Implementation and processes by 4th Quarter 2004 Bridges We Had to Get Over “But this is the way we always do it” “Why can’t we build it ourselves?” Who will own/run/pay for this thing? XBRL – new, risky, why be one of the first? Plenty of proposals – which was best? Exactly what do we want? Are we sure we want that? Bends in the Road Nailing down the costs, and business case Designing, developing and confirming the taxonomy Conducting reality checks with major stakeholders Adding new resources and bringing them Transition from Concept to Production Developed a proof of concept Developed a detailed Request for Proposal Bid conferences to solicit and answer bidder questions, and refine the vision Carefully evaluated proposals Established comprehensive project team to guide the contractors’ work Early Decisions Prove the model Take a ten-year view Let the industry propose the “how” Let the government specify the “what” Advanced analysis and taxonomy Why the Call Report? Foundation data for bank’s 8,300 institutions report quarterly Multiple usages Data structures are well-documented 2,000+ data fields 1,500 validation edits agreed upon and published 500 pages of Instructions 25 Schedules 2 Call Report Forms Why XBRL? Open Standards Promotes effective data exchanges Lower long-term costs Efficiencies, Improved data quality Timeliness Business rule based XBRL frameworks are extensible Impact on the Agencies A centralized data storage and processing facility Shared costs and management Meta-data published in XBRL format Expedited data publication Enhanced interagency standards for data quality Agreement on what constitutes “Quality” Publishing criteria which banks are accountable Impact on the Banks Elimination of paper-based report requirements Use of a standard meta-data set Emphasis on validating data prior to submission Internet delivery of data to the repository Increased awareness and potential for XBRL Culture Shifts Create a shared enterprise Emphasize data, not forms Shift from proprietary standards to open standards Move toward electronic exchange model Adopt an industry-wide Need for Industry Coordination Close coordination with XBRL International Active participation from banks Early and intensive consultation with intermediaries Engage in dialogue with industry associations Future Vision for Regulatory Reporting Build extensible platforms Adopt solutions that are language and platform neutral Emphasize reuse of data Collect it once, use it many times Coordinate efforts among regulators Expand the use of XML-based standards What is the Potential? Common data across reporting boundries Tax reporters SEC filings Census Compliance reports to regulators Straight-through processing Communal repository on the net Stating the Obvious (our lessons learned) Carefully craft and hold the vision Human factor Accommodate research and development time Be selective about what you bite off Discuss and define potential risk Be ready for disappointments – and celebrate every step forward CDR XBRL Focus Group Friday 2:30 til 4:30 @PwC 1420 5th Ave Between Pike St. and Union St. Questions?