Standing for trust and integrity 19 th XBRL International Conference Paris, June 22-25 2009 Status...
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Transcript of Standing for trust and integrity 19 th XBRL International Conference Paris, June 22-25 2009 Status...
Standing for trust and integrity
19th XBRL International Conference
Paris, June 22-25 2009
Status FEE XBRL Task Force,what is happening around Europe
Philip JohnsonFEE Deputy President
Chairman FEE Auditing Working Party and FEE XBRL Task Force
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Federating Member Bodies
43 professional institutes of accountants 32 European countries, including all 27 EU > 500.000 professional accountants
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Agenda
Why should auditors in Europe be interested in XBRL?
Will auditors be asked to provide additional levels of assurance on XBRL information?
What has FEE done to consider the matter? Where are IASB in the debate? What is IAASB doing? What are some of the other issues for auditors
surrounding XBRL?
4 Standing for trust and integrity
XBRL around Europe (1)
Current examples on the use of XBRL around
EuropeBelgium: over 90% of the companies use XBRL for
financial statement filing which is pre-formated;
France: XBRL filing of annual statutory financial
statements is accepted although little progress has
been made with public companies;
Italy: the XBRL implementation has started; around
100,000 financial statements are expected to be filed
under the new format;
5 Standing for trust and integrity
XBRL around Europe (2)
Netherlands: XBRL information prepared in agreement
with the tax authorities will be accepted for tax purposes;
banks have developed an extension of the Dutch
taxonomy and are ready to start using it;
Spain: the use of XBRL has been approved by the
authorities to file accounts;
Sweden: since 2006 electronic filing has been permitted by
the legislator. For the year 2008, 60 fully electronic XBRL
tagged annual reports have been submitted via the official
internet service provided;
UK: there is a limited use of XBRL. Parallel projects are
taking place, for audit exempt companies, abbreviated
accounts can be filed in XBRL.
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FEE and XBRL
FEE has an XBRL Task Force combining
financial reporting and auditingFirst meeting in October 2008 brainstormed on
possible FEE actions and considered types of
assurance which may be requested;
Second meeting in March 2009 considered
developing a project proposal;
A Policy Statement to educate the accountancy
profession and stakeholders is being drafted.
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Assurance from auditors
What type of assurance should be given:Reasonable assurance
Limited assurance
Agreed upon procedures
To whom:Management
Shareholders
Third Parties
And when?
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XBRL Diagram
XBRLF/S
Within company
XBRLF/S
External filing
Financial andnon-financial information
GeneralLedger
NotesInformation
StylesheetC, D, E
Taxonomy Extensions
Taxonomy
Financial Statements (F/S)
PAPER
StylesheetA
StylesheetB
Instance Document
1
4
2
3 3
ü ?
ü?
5
6
1) Tagging by bar code2) Database integrity by IT
general controls3) Style sheets4) Taxonomy5) Taxonomy extensions6) Instance documents
Third Parties
(Brokers, Analysts ,
etc.)
(Brokers, Analysts ,
etc.)
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FEE Policy Statement on XBRL (1)
FEE Policy Statement on XBRL main aim is to
increase awareness in and outside the
professionWhat is XBRL?
What are XBRL “Taxonomies”?
What are “Extensions” of a Taxonomy and why are
they used?
What is “tagging”?
What is an “Instance Document”?
What is a “Style sheet”?
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FEE Policy Statement on XBRL (2)
The Policy Statement also deals with:Use of XBRL
How does XBRL change the preparation of financial
statements
Implications of XBRL for statutory auditors
IAASB project on XBRL
XBRL Advantages and Disadvantages
Implications of XBRL for third parties
Practical implications
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IFRS XBRL Taxonomy The International Accounting Standards Board (IASB) is
responsible for the implementation of XBRL developments adapted to their latest accounting standards.
On 2 April 2009, the International Accounting Standards Committee (IASC) published the final IFRS XBRL Taxonomy 2009.
The IFRS XBRL Taxonomy 2009 is a translation of International Financial Reporting Standards (IFRSs) as of 1 January 2009 into XBRL.
FEE does not believe auditors should provide assurance on the IFRS XBRL Taxonomy.
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IAASB XBRL Project
The International Auditing and Assurance Standards Board (IAASB) approved a project that includes:
1. Consultation to obtain views about the IAASB’s plans to develop a pronouncement to address the performance and reporting expectations of the auditor in connection with audited financial statements that are accompanied by XBRL data (Phase 1 by March 2010); and
2. Subject to no indication to the contrary in the public interest arising from Phase 1, the development of a pronouncement on the responsibilities of the auditor in an audit of financial statements when audited financial statements are accompanied by XBRL data (Phase 2 by December 2011).
No new (non-audit) assurance or related services standard would be developed.
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Other Issues on XBRL for the Profession
General lack of awareness, understanding and
knowledge;
Unease about change and the « unknown »
On which steps is audit or assurance needed?
Change in audit approach and/or opinion?
Issues with electronic signature
IAASB pronouncement might come too late
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Next Steps for FEE
Continuous contribution to IAASB project
Consideration of assurance requirements
beyond financial statement audits
Educating the profession and third parties