Expanding regulatory reporting requirements
Every year, the banks, the insurance companies, the quoted companies and the investment firms have to file financial reports with regulating authorities in various formats. Some are relatively easy to produce without technical knowledge or specialized tools, e.g. formats based on Microsoft Word or Excel and Pdf. Some require the production of valid XBRL (eXtended Business Reporting Language) files, according to XBRL taxonomies that specifies content and validation rules. Our solution addresses this latter requirement.
Each year new reporting taxonomies are issued and have to be implemented.
For example, in Belgium, in addition to Solvency II reporting, the insurance companies have to produce for the NBB the Interest Risk Rate (IRR) reporting; in the Netherlands (DNB), the Verzekeraars Nationale Staten (VNS); in France, the Reporting Assurance National (RAN), etc.
The bank sector follows the same trend: the Single Resolution Board (SRB) reporting has to be produced in 2018 in addition to the CRD IV.
The International Financial Reporting Standards (IFRS) requested by more and more countries around the world also relies on XBRL for the electronic exchange of information. For 2020, listed companies will have to implement the Transparency Directive, through IFRS-based (ESEF/ESMA) reporting.
The Standard Business Reporting (SBR) is adopted by several countries inside and outside Europe (the Netherlands, Sweden, Finland, Denmark, Australia, etc.) and is increasingly based on XBRL for the automated exchange of information.
Make your XBRL reporting efficient
In the past, many organizations implemented specific XBRL solutions able to support one or two taxonomies. Now, that new taxonomies and new versions of taxonomies are periodically published, only a generic set of XBRL tools provides an economical, sustainable and flexible path.
Generic tools are fully taxonomy-driven: they will work with all existing and future XBRL taxonomies. This drastically reduces the costs, delays and user training when new (versions of) taxonomies are published. Financial report processing is becoming a technology like document and database management; report project implementation will increasingly follow standardized development workflows and methods.
At the centre of our solution is a generic XBRL engine. This engine is based on the Arelle open source platform (www.arelle.org) renowned in the XBRL community. Acsone’s version and extensions include:
- XBRL native drafting capability of XBRL reports according to any taxonomies based on Presentation or Table Linkbase;
- Excel drafting and conversion (import & export) of reports according to any taxonomies based on Presentation or Table Linkbase;
- Extended support of XBRL specifications in the drafting processes: full support of table, presentation, formula, dimensions linkbases and inline XBRL;
- Extended support of taxonomies including country specific reporting requirements (in particular EBA/CRD IV, EIOPA/Solvency II, ECB FINREP, SRB, IFRS, NBB/IRR, DNB/VNS, …)
- Significant improvements to formulas processing in order to:
- speed up processing
- monitor execution delay
- optionally deactivate some formulas
- contextually display validation errors
- clean-up duplicate information
- new drafting capabilities:
- support of copy/cut/paste Excel clipboard
- search function
- display of raw/rendered values
Of course, Acsone’s solution benefits also of all the facilities provided by the original Arelle such as its user interface, command line and REST services, and multi-lingual support.
Our tools set provide the following key advantages to our customers:
- Rapidity of implementation; reporting can start as soon as the taxonomy is available, even in draft status;
- Robustness and usage flexibility; due to its genericity, our tool box is used in many different configurations, reporting processes and contexts, not only by filers, but also by supervisory authorities, by software editors and financial analysts;
- Its cost effectiveness.
With our tool the user organization is largely shielded from the technicalities and complexities of XBRL and taxonomies and can instead concentrate on the data extraction from its databases and the content of the reports .