XBRL Application in China: Listed Companies Information Disclosure Using XBRL

XBRL Application in China: Listed Companies Information Disclosure Using XBRL

MA DonghaoAssistant Chief Executive OfficerShenzhen Stock Exchange

Shenzhen Stock Exchange

AgendaMarket at a GlanceInformation Disclosure: current practiceThe ProblemsProject SummaryObjectivesTaxonomies FrameworkImplementation approachesThe BenefitsFuture development

Market at a glanceTwo national stock exchanges in China: Shenzhen and Shanghai. Listed securities: 543@Shenzhen, 828+@Shanghai Cash market only, products: common stock , treasury bills, bond and funds. Market Regulator: CSRC.


Mandatory information disclosuresProspectusOffering circularPeriodic reportsAnnual Report, Half-year Report and Quarterly ReportTimely reportsNotice on material issues,Notice on M&A,Notice on clarification, etc.Medias of disclosure: 4 appointed newspapers and 2 appointed websites


Disclosure process


Disclosure process: periodic reportsFilingShenzhen: E-Filing software->structured dataReport in PDF (prepared manually)Shanghai: Report only in PDF (prepared manually) Registration: computer-assisted AnnouncementNewspaper: paper-based document exchangeWebsite: Summary in HTML, full-text in PDF


Disclosure process: timely reportsFilingFax to Company Management Department of the ExchangeApprovalPaper-based, feedback by faxCheck for: conformity to CSRC/ Exchange rules, procedural correctness, consistency.Announcement: paper-based exchange of reportNewspaperWebsites


Disclosure reporting supply chainListed companiesCSRCThe ExchangesAppointed papers, websitesInformation vendorsSoftware vendorsInvestors


The Problems

Low data quality Inconsistency High market cost


Project Summary

Initiated by the CSRC, with active support from both exchanges.Using XBRL for information disclosure, with periodic report as a start.Developed as a national standard, currently released for public comment, scheduled to be released officially at the end of 2003Pilot deployment early 2004 for quarterly report


Objectives

An extensible standard framework An open standard Better disclosure data quality


Information disclosure taxonomy features

Based on XBRL 2.0 Specifications. Built for current CSRC disclosure requirements, but with provision for future development Developed our own PFS Not yet extend from Core IAS Taxonomy


Taxonomy features: continued

Periodic report first

Form-based approach

Item names in Chinese


Framework


Global Common Document(int-gcd)

CID Core(cn-csrc-core)

CN-PFScn-csrc-pfs)

Non-Financial Datacn-csrc-nf)

Global Conceptcn-csrc-gc)

Global Termscn-csrc-gt)

Otherscn-csrc-other)

import

Prospectuscn-csrc-ni)

Periodiccn-csrc-pr)

Timely Reportcn-csrc-tr)

Other Reportcn-csrc-etc)

extends

extends

Implementation approaches

Minimal impact to current infrastructureImplement XBRL for periodic/timely reporting filingUpgrade companies filing softwarePublish XBRL instance documentIntegrate back end accounting systems and/or regulatory packages with XBRL


Disclosure process using XBRL


The Benefits

Market transparency Better quality vs. lower price Flexibility to changes in disclosure rules


The Benefits

The Exchanges Information vendors All stakeholders Listed companies


Open issues

XBRL applicability with non-financial report Inadequate domain experts involvement Lack of experienced XBRL experts No public forum


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XBRL Application in China: Listed Companies Information Disclosure Using XBRL

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