Ignacio Nacho Boixo The XBRL Network of the Committee of European Banking Supervisor

1. How to foster harmonization through Best Practices Ignacio Nacho Boixo The XBRL Network of the Committee of European Banking Supervisor May 5, 2008 - Eindhoven, Netherlands

2. Report 27 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- What is the problem? Basel II, IFRS … Global best practices European Law 9X,XX% best practices + EU requirements EC 2006/48 & 49 … Transposition into national Legislation Country 1 Country 2 Country 3 Country 27 National Regulation Sup 1 NCB 2 FSA 3 Sup 27 National Implementation Report 1 ------------------------------------ Report 2 Report 3 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- XBRL challenge! How to maintain harmonization?

3. Why are Best Practices important? • Technological standards (as XBRL) are prone to be implemented in an incompatible fashion. • Top-down harmonization is a traditional option when a hierarchical authority is on duty. • Bottom-up harmonization is based in voluntary persuasion through Best Practices explanations about design/implement. XBRL Best Practices will support the European supervisors and financial institutions by providing a set of relevant and applicable recommendations when developing and implementing XBRL reporting frameworks.

4. How Best Practices Board runs? ISC ISC ISC ISC International Steering Committee International Steering Committee Objective: Ultimately charged with the responsibility of considering and approving the release and publication of certain key documents and pronouncements (particularly recommendations) Ultimately charged with the responsibility of considering and a Objective: BPB BPB BPB BPB BPB BPB Part Part - - time XBRL Best Practices Board time XBRL Best Practices Board Part Part - - time XBRL Best Practices Board time XBRL Best Practices Board 7 Members (annual terms), maximum 3 from ISC of which one is 7 Members (annual terms) Chair of XSB 7 Members (annual terms), maximum 3 from ISC of which one is 7 Members (annual terms), maximum 3 from ISC of which one is Chair Chair of XSB of XSB 2 Members: 2 Members: 1 Member: 1 Member: 2 Members: 2 Members: 2 Members: 2 Members: Regulatory Reporting Regulatory Reporting Financial Analysis Financial Analysis Program Management Program Management Software Software (XML and XBRL experts) Create XBRL development, integration, and maintenance practices intellectual property Objective: Initial Initial appointment appointment Practices Working Groups Practices Working Groups Practices Working Groups Practices Working Groups Practices Working Groups Practices Working Groups Permanent (standing) Temporary ( ad hoc ) Permanent (standing) Temporary ( ad hoc ) Chair Chair After 1st Year (if necessary) Vice Chair Vice Chair Members Members proposes documents for approval monitors compositions appoints elects selects confirms selection and appointments charters and disbands

5. What about deliverables? • Request for Comment (RFC): • A document describing existing practices. There is value simply in collecting together the practices used in different XBRL projects. While it is best if it contains empirical analysis, no overall evaluation is expected. • Practice Note (Note): • A document that suggests effective practices for defined situations, reflecting the consensus of the working group insofar as it represents XBRL International.

6. What on Practice Working Groups? • Project Management (PM): • Organization and execution of large scale projects, especially taxonomy development and maintenance projects. • Reporting Process (RP): • Using XBRL appropriately across many organizations in a “supply chain”, taking into consideration all aspects of data exchange. • Taxonomy Architecture (TA): • Domain, Logical and Physical models to ensure reusability of the content of XBRL taxonomies. • Vendor-to-vendor Interoperability (VI): • Implementation methods that maximize the likelihood that XBRL produced by one vendor’s product will be interpreted correctly in another.

7. CEBS Priorities: • Use of Matrix Schema as communication tool among Supervisors and XBRL experts • Project Management and taxonomy extensions • Banking Supervisors XBRL Teams coordination • Creating instances, identifying filers, rounding • Use of open explicit versus typed dimensions • Resources: • www.corep.info/documents/documents_project.html • www.xbrlwiki.info CEBS Best Practices arena • www.xbrl.org Website