Information homogeneity in European Central Balance Sheet Data Offices. Experience with BACH and the use of IASB-XBRL

Transcription

1 . Information homogeneity in European Central Balance Sheet Data Offices. Experience with BACH and the use of IASB-XBRL European Commerce Registers FORUM (Seville, June, 2003) Manuel Ortega Ortega Head of the Central Balance Sheet Data Office Division

2 1. Reporting units NON-FINANCIAL CORPORATIONS IN SPAIN Number Employees GVA Absolute values % % % TOTAL NON-FINANCIAL CORPORATIONS A. Entrepreneurs (individuals) B. Non-financial corporations Public limited companies Listed Continuous market Of which, IBEX Ring trading Unlisted Private limited companies Other corporate forms Source: INE Central Companies' Directory (DIRCE) and in-house, drawing on CNMV data

3 2. Information users and their demands Investors and employees: all necessary breakdowns Tax authorities, statistical units, suppliers and credit institutions: simplicity, comparability and standard formats Pressure exerted by stock markets

4 3. Need for comparable homogenous information Objective is knowledge of: Balance sheet position / risk analysis Results Comparability and type of annual accounts: Individual (sectoral and historical analysis) Consolidated (risk analysis) Comparability and type of study: Aggregate (sum of companies) Individual Comparability and regional scope: Intra-country analysis Inter-country analysis

5 4. Need for information on non-resident companies and sectors Internationalisation of the Spanish economy; some figures: Exports of goods and 15.8% 29.9% services/gdp Source: Balance of Payments. / INE Spanish exports 2001 (%) to: France Germany Portugal Italy 8.96 United Kingdom 8.94 Total EU Rest of the world Number of Spanish exporting 8,029 firms Total 100 Source: Spanish Chambers of Commerce Source: Balance of Payments.

6 5. Reporting requirements and Central Balance Sheet Data Offices CBSOs, same name, different tasks: Compilation of aggregate information statistics (Spain and Portugal) Dissemination of individual company data (Belgium) Source of information for credit institutions for risk analysis (Germany, Austria, Italy) Combination of functions (France) Same method: use of annual standard-format accounts Experiences in information homogenisation: BACH database Single-format European questionnaire using IAS-XBRL

7 6. BACH database, an attempt at homogenisation BACH database Content: United States, Japan and European countries Balance sheet, profit and loss account and ratios Format harmonisation: same concepts, but identical content? Limit: Basic charts of accounts. Examples: Capitalisation of expenditure and accounting revaluations Off-balance sheet leasing Classification of maturity in terms of origin Excise duties in turnover Questionnaires with differing degree of breakdown: Loans with group companies

8 7. The future: IAS (IFRS)-XBRL as a standardisation solution Opportunity for international accounting standardisation: Change to international accounting standards (IAS or IFRS). Use of XBRL as information exchange system (universal and flexible) Risk: That international standards may not be applied to all companies: losses in intra-country comparison

9 8. Standard form for European CBSOs,, devised with IAS-XBRL Work undertaken: Complete form (general characteristics, employment, assets, liabilities, profit and loss account, cash-flow, changes in net worth). Characteristics: Maximum level of detail, beyond classification Each concept defines whether there is an XBRL tag Use of net values in balance sheet Current/non-current approach in balance sheet Real case-study test, conclusion: lack of information (employment, subsidies, depreciation and provisions, statements of movements) / different degree of use of IAS / difficulty of applying fair-value accounting

10 9. Questionnaire format COUNTRY: COMPANY: Thousands IAS XBRL Year ASSETS Paragraph Tag CBSO code Current Previous I. NON-CURRENT ASSETS 1.57 XBRL 0 0 A. Tangible assets Property, plant and equipment 1.66.a XBRL Land and buildings Land XBRL Buildings XBRL 1.2. Plant and equipment XBRL 1.3. Other elements Motor vehicles XBRL Fixtures and fittings XBRL Leasehold improvements d XBRL Other property, plant and equipment (a) d XBRL 1.4. Construction in progress c XBRL 2. Investment property 40.69, XBRL Land and buildings 40.67, Land 40.67, Buildings 40.67, Other investment property 40.67, 69

11 10. Challenges of effective standardisation Extension of IAS rules to all European companies, eliminating alternatives Use of XBRL by all companies, including SMEs Involvement of IT firms developing accounting software Development of extended XBRL classification with the participation of these companies (connection of accounting modules to other company reporting areas)