I N K O S D A Q

I N K O S D A Q

X B R L X B R L P I L O T P I L O T P R O J E C TP R O J E C T

8th XBRL International Conference (Seattle, WA)

K O S D A Q S t o c k M a r k e t I n c . Nov. 4, 2 0 0 3

III : Assignments

II : XBRL Pilot Project01. Introduction02. Taxonomy for Korean Companies03. Transformation of SGML filings to XBRL04. Web & Excel-based Analysis Tools using XBRL05. What XBRL offers

I : KOSDAQ01. Introduction 02. Comparison Among Asia’s New Markets03. Global Status

XBRL PILOT PROJECT

8th XBRL International Conference

I N K O S D A Q

8th XBRL International ConferenceX B R L P I L O T P R O J E C T

I : KOSDAQ

- Provides an investor-friendly environment providing capital for SMEs and IT venture businesses, serving as the marketplace for new and diverse opportunities.

- Referred to as the “Nasdaq of Asia”

- 100% fully automated trading system

- Top of the world in On-line Trading

- WWW.KOSDAQ.COM

01. Introduction


I : KOSDAQ

02.Comparison Among Asia’s New Markets

1,011

125341

14 240

250

500

750

1,000

1,250

1,500

1,750

2,000

KOSDAQ JASDAQ(1) GRETAI(2) SESDAQ(3) GEM(4)

Daily Trading Value (US$ mil.)

Note: (1) Japan (2) Taiwan (3) Singapore (4) Hong Kong

( End of November 2002 )


I : KOSDAQ

03.Global Status(US$ bil.)

* WFE Sep. 2003(companies), July.2003 (Trading Val, Market Cap)

Rank

No. of ListedCompanies

Rank

AccumulatedTrading Value

Rank

Market Cap.

1TSX Toronoto(3,621)

1 NYSE (7,146) 1 NYSE (10,114)

2Nasdaq(3,324))

2Nasdaq (5,035)

2Nasdaq (2,746)

3Spanish Exchanges(3,198)

3London (2,589)

3 Tokyo (2,644)

4LONDON(2,692)

4 Tokyo (1,421) 4London (2,110)

14KOSDAQ(866)

14 KSE (326) 15 KSE (256)

16 KSE(686) 20KOSDAQ(234)

36 KOSDAQ(33)


II: XBRL Pilot Project

01.Introduction

PROJECTOVERVIEW

Contractor : Samil (PwC), UB Matrix Korea (UB Matrix USA)

- Personnel : Accounting Consultants (Local : 5 , Foreign : 1) Engineer (Local : 3, Foreign : 5)

- Software : Taxonomy Builder, Universal Studio, Web Analyzer (UB Provided), Oracle, JSP, Excel

- Period : July 28th ~ Nov. 10th 2003 (15 weeks)

- Samples : 15companies (5-year Financial Statements)

- Commercial & Industrial Korean GAAP(K-GAAP) Taxonomy Establishment

- Web and Excel-based Investor Analysis Tool

- Technical Experiment on the Internet

Outcome : XBRL Products


Nasdaq launched XBRL Pilot Project in 2001- In Korea, FSS, KSE, KOSDAQ have established SGML-based E-disclosure Infrastructure (DART in Korea, EDGAR in USA) for Financial Reporting since 1999- Establish on Standardized Financial Statements with simpler process for listed companies Increase Market Transparency- Provide fast and enhanced financial statements and empowered analysis tool for investors around the world Increase Equity funding with Investors Trust

Benefits to KOSDAQ’ & Listed companies

BACK-GROUND

InvestorTrust

Investment

Simpler

Process

KOSDAQ-PwC

-UB Matrix

COMPANIES INVESTORS

StandardizedFinancial Statements

Fast & Enhanced Financial Statements & Analysis Tools


01.Introduction


GOAL- Approval from XBRL International- XBRL adoption around Korean Companies in Financial Reporting

Establish K-GAAP Taxonomy

- Provide standard Financial Statements through XBRL - Empower investors by providing analysis tools

Increasing Market Transparency

- Kosdaq is the first organization to recognize the value of XBRL

Frontier in XBRL Technology in Korea


01.Introduction


PROCESSSamil (PwC) UBMatrix (UBMatrix USA)

1. Define & Establish Korean GAAP Taxonomy 2. Provide Taxonomy Builder Tool

4. Confirm XBRL Instance Outcome 3. Establish & Validate XBRL Instance (Korean/English)

5. Save in Document Repository

6. Apply EDGAR Analyst analysis Program to the WEB

7. Develop Excel Analytics & Apply to the WEB

9. Apply outcomes to EDGAR Analyst

<VALIDATION FROM THE PROJECT> - EDGAR Analyst Financial Standards Review - Validation of extracted Financial Information - Business Evaluation Model of SMEs

8. Hold related Seminars

10. PR to foreign securities houses & Investment Companies

Project Review & Follow-up Planning


01.Introduction


APPROACH

02.Taxonomy for Korean Companies

Standardized Financial reporting system using E-disclosure (based on SGML)

E-disclosure System

- Besides Standard Accounts, FSS includes Accounting Practices (approx. 3,000 accounts) - Industry (Finance, Non-Finance)

* Financial Statements of FSS

via Internet

ListedCOMPANIES

FSSKOSDAQ

(KSE)INVESTORS


SGML Based Financial Statements

APPROACH

K-GAAP TAXONOMY

INDUSTRY EXTENSIONOF K-GAAP TAXONOMY


1. US GAAP, IAS (FSS)

2. FSS (US GAAP, IAS)

TAXONOMY ARCHITECTURE??

How to approach building K-GAAP Taxonomy in line with Global Financial Statements?

REFER TO FSS (*2) * Dr. Walter Hamsher’s Suggestion - Accounts Hierarchy from FSS

- Label, References from US GAAP, IAS

APPROACH


Issues and Considerations


APPROACH

K-GAAP TAXONOMY

INDUSTRY EXTENSIONOF K-GAAP TAXONOMY


APPROACH

02. Taxonomy for Korean Companies

3Phases

Phase 1. K-GAAP Taxonomy (Korean Standards)

- K-GAAP Taxonomy Definition/Establishment based on Korean Companies Accounting Principles

Phase 2. Extended FSS Taxonomy (Commercial & Industrial)– In actual industry accounting practices -over

3,000acccounts were used, FSS element Extension

Phase 3. Company Extension– Naming and defining up to the level of Individual Company’s User defined Accounts(excluded in FSS Accounts Schema)* In general, individual companies expand and apply lower level

accounts when standard Taxonomy is defined, however, in Korea FSS account schema has already included the level of industry.


APPROACH

K-GAAP TAXONOMY

EXTENDEDFSS TAXONOMY


K-GAAPTAXONOMYfor Korean Standards

NEXT >


Framework

01 Chart of Accounts

02 Notes

03 GAAP References


APPROACH

K-GAAP TAXONOMY

EXTENDED FSS TAXONOMY

- Chart of Accounts- Notes- GAAP References


Standardized Accounting StructureGuided by Korean Companies Accounting Principles

- Korean Companies Accounting Principles

- Refer to IAS, US GAAP

Accounting Review

Label, Description



BACK <


XBRL adoption skill in accordance with international standardized accounting principles - XBRL Specification & Taxonomy Builder Skill

- IAS, US GAAP Taxonomy Schema & Structure

- Consideration with FRTA

Technical Review

Element, Attributes


CoA including Commercial & Industrial in accordance with Korean Companies Accounting Principles with the consideration of International Standards.

- Chart : B/S, I/S, R/E, C/F (approx. 870accounts)

APPROACH

K-GAAP TAXONOMY






BACK <



APPROACH

K-GAAP TAXONOMY




Reliance



BACK <

Guidelines from KASB

Best Practice from Accounting

Firms

Actual

Financial Reports fromKOSDAQ Listed Companies

Notes Standardization for K-GAAP Taxonomy - 121 type notes (Quantity & Variety) * 3,000 notes (in general) cannot be completed in this pilot project(3 mo.’s) and should be continued… * Notes standardization has encountered unexpected problems (Various table formats in Korean Notes)


02 Notes

APPROACH

K-GAAP TAXONOMY






BACK <

02 Notes


APPROACH

K-GAAP TAXONOMY






BACK <

03 GAAP References

K-GAAP references which had similar rules with K-GAAP references which had similar rules with IAS, US GAAP were reviewed and referenced.IAS, US GAAP were reviewed and referenced.* Rule : statements, opinions, etc.* Rule : statements, opinions, etc.

- K-GAAP Reference based on Standards from KASB.

- IAS References based on standards from IASB.

- US GAAP References based on standards from FASB.


APPROACH

K-GAAP TAXONOMY






BACK <

03 GAAP References


APPROACH

K-GAAP TAXONOMY





EXTENDEDFSSTAXONOMY

- K-GAAP Taxonomy must be extended up to the level of FSS to connect between K-GAAP Taxonomy and Existing FSS E-disclosure Financial Accounting Structure.

- General Schema was adopted from K-GAAP, however, in the extended Taxonomy there was some complications (see below *).

* FSS includes Similar accounts and it can be matched more than one account in the translation of Korean * Element posting in Taxonomy Builder accepted English only.

* Similar accounts : - Accounts which has same meaning with two different names - Accounts with similar meanings with different names


Extension for FSS Industry Practice

APPROACH

K-GAAP TAXONOMY

EXTENDEDFSS TAXONOMY



EXTEDEDFSSTAXONOMY


Extension for FSS Industry practice

APPROACH

K-GAAP TAXONOMY

EXTENDED FSS

TAXONOMY


03.Transformation of SGML filing to XBRL

MAPPING TABLETo transform SGML filing into XBRL instance


Inherited schema

K-GAAP TaxonomyKorean Standard

Extended FSS Taxonomy (name)

Financial Reports(SGML)

MappingTable

Use Mapping Table to Transform SGML Filing intoXBRL Instance

XBRL Instance


03.Transformation of SGML filing to XBRL

MAPPING TABLETo transform SGML filing into XBRL instance


Mapping Table for Transformation


04.Web & Excel-based Analysis Tools using XBRLSYSTEMARCHI-TECTURE

Web View & Excel



04.Web & Excel-based Analysis Tools using XBRLSYSTEMARCHI-TECTURE

Technical Experiments



04.Web & Excel-based Analysis Tools using XBRLANALYSISFUNCTION

SCREENSHOTS

- Growth(9 ratios) Profitability(19 ratios) Stability(17 ratios) Turnover(8 ratios) Cash Flow(6 ratios) Others(10 ratios)- B/S, I/S, C/F, R/E

Ratio & Financial Statements Analysis

- Summary of Single company - Comparison ( Multi-Company One Period, Company-Industry One period, Single-Company Multi Period ) in Financial, Ratio

Analysis Methods (Web & Excel)

Web Viewer, EXCEL, Technical Experiments -- Video Clip (MPEG file)



05. What XBRL Offers

SCREENSHOT


05-1 Change of Exchange Reporting Objectives (SGML -> XBRL)

05-2 Accounting Global Standards Based on XBRL

05-3 Financial Reporting Process in EXCEL

05-4 Enhancement in Financial Reporting

05-5 Change in Information Analysis (WEB)

05-6 Change in Information Analysis (EXCEL)

05-7 Change in Information Analysis

05-8 Change in Information Logistics


SGML

05-1 Change of Exchange Reporting Objectives (SGML -> XBRL)

XBRL

Accept Global Standard(Global Communication)


SGML / DTD

05-2 Accounting Global Standards Based on XBRL

XBRL / TAXONOMY

Recognition of Financial Statements &

Easiness of Sharing Information

Logical AccountsSchema

Logical CofA

Reference, Presentation, Calculation, Label,

Definition


SGML(restricted,closed)

05- 3 Financial Reporting Process in EXCEL

XBRL(open,Common)

Easy to prepare Fin’l Statements


BEFORE

05- 4 Enhancement in Financial Reporting

AFTER

FinancialSystem

OutsideDisclosureDocuments

Other3rd Party

Documents

FinancialReportingPrint out

SupervisoryOrg. Report

CompanyWebsite

IRS Report

Audit Report

Financial System

OutsideDisclosure Documents

Other3rd Party

Documents

FinancialReportingPrint Out

SupervisoryOrg. Report

CompanyWebsite

IRS Report

Audit Report

XBRL

•Reduce Time & Costs•Reduce Errors in re-input•Compatible with any S/W


BEFORE

05- 5 Change in Information Analysis (WEB)

AFTER

(Excel Download)

-Visual Analysis-Comparison with Companies -Time Series Comparison-Industry vs. Industry


BEFORE

05- 6 Change in Information Analysis (Excel)

AFTER

Office 2004 embedded in XML Functions


05- 7 Change in Information Analysis


BEFORE

05- 8 Change in Information Logistics

AFTER

• BETTER• FASTER• CHEAPERInformation Vendors

-Enhanced Information

COMPANY

INVESTORS(Web, Excel)

COMPANY

INVESTORS


III:ASSIGNMENTS

XBRL International Approval on K-GAAP Taxonomy

- Join XBRL Korea Jurisdiction (2003.9.29)

- Submit K-GAAP Taxonomy Draft to XBRL Korea Jurisdiction (2003.10.21)

- As a member of XBRL Korea Jurisdiction, attain XBRL International approval on K-GAAP Taxonomy (ongoing)

- Co-work with FSS, KSE for Korea Standardization in Working Group

- Announce K-GAAP Taxonomy as Standard Financial Reporting for Korean Companies with the aid of FSS, KSE & KASB

- Co-operation with FSS to improve E-disclosure infrastructure from existing SGML to XBRL and XML.


- Invite XBRL experts and hold domestic seminars to publicize Kosdaq Pilot Project (in 2003)

- Presentation of Pilot project during Overseas IR roadshow with KOSDAQ Listed Companies to attract foreign investors

- Maintain & Expand XBRL information from 15 to 30 companies

* Project consistency with real-time update of financial information

III:ASSIGNMENTS

NEXT STEP…

KOSDAQ will be the Eternal Pioneer in XBRL

I N K O S D A Q

X B R L P I L O T P R O J E C T

8th XBRL International Conference (Seattle, WA)

K O S D A Q S t o c k M a r k e t I n c . N O V 4 , 2 0 0 3

:: thank you

I N K O S D A Q

Documents

Transcript of I N K O S D A Q