XBRL for Regulatory Reporting “ How to do it cost efficiently, quickly and well.” UBmatrix は業界第一の XBRL ソフトウェアを提供します。 Visit us at: Phil

XBRL for Regulatory Reporting

“How to do it cost efficiently, quickly and well.”

UBmatrix は業界第一の XBRL ソフトウェアを提供します。

Visit us at: www.ubmatrix.com

Phil Walenga, Director of Financial Services UBmatrix Inc.

UBmatrix, Inc. (c) 2005 All rights reserved.

Page 2

Agenda

• UBmatrix Solutions and Products

• 5 T’s of XBRL – It is ready!

• Live Demonstration

• A how to do it checklist √

• How long does it take?

• Results

Page 3

UBmatrix’ Solutions and Products


Page 4

Solutions

• Production Ready XBRL Taxonomies– Major contributor to IFRS and other Financial Reporting XBRL

taxonomies, – Contributor to Belgium Bank taxonomy, Dutch Government and

COREP– Developed: CRAS, FFIEC, KOSDAQ, Sumitomo Mitsui Bank– Major Contributor to XBRL Best Practices: FRTA, FRIS, Patterns

Document, etc.

• Production XBRL Solutions– Designed and developed XBRL regulatory system - FFIEC– Designed and developed a centralized, collaborative XBRL

service - CRAS– Designed and developed XBRL analytical and publishing system -

KOSDAQ


Page 5

“XBRL is the essential ingredient in the success of the FFIEC Call Report Modernization initiative. With the help of UBmatrix, FFIEC has created new XBRL Call Report Taxonomies that incorporate concepts, instructions, calculations and formulas to allow us to automate the workflow process among the three bank regulators – the FDIC, the Federal Reserve and the OCC.”

- Mike Bartell, CIO

FFIEC U.S. Call Report


Page 6

FFIEC Call Report Modernization

UBmatrix contributed:1. Problem definition

2. Proof of concept and prototype development

3. Requirements development

4. Taxonomy architecture and testing

5. Architecture and design consulting

6. Systems developers and development

7. Licensed software for processing XBRL and managing taxonomies


Page 7

ProductsTechnology to automate your regulatory reporting systems.


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Modeling your taxonomies: UBmatrix XBRL Automator Professional


Page 9

Managing your taxonomies: UBmatrix Universal Business Server™

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5 T’s of XBRL – It is ready!!


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5 T’s of XBRL

1. Technical Specification: XBRL 2.1 is stable

2. Taxonomies are released

3. Training available for generic and customized solutions

4. Tested high performance applications

5. Tools offering end to end solution

Page 12

DemonstrationHighlights


Page 13

Regulatory Reporting Requirements

• Operate More Efficiently

• Produce More Timely Data

• Produce More Accurate Data

• Save Money

• Reduce Burden

• Reduce Risk

All these requirements were met with

the FFIEC application!

UBmatrix, Inc. (c) 2005 All rights reserved. 14

(a) Sub Prime Loans

July 1, 2005 –

September 30, 2005

Collect Quarterly Financial Reports from 8,200 banks

2,157 Line Items

396 Pages of Instructions

3,119 Formulas

Multiple errors per report

Data released about 60 days after submission

Error-freeReports in 2 Days or Less

UBmatrix, Inc. © 2005 All rights reserved


Page 15

Demonstration Outline

• Web Based Taxonomy Development– No need for business analysts to know XBRL

• Create and Update Concepts• Manage Users, Import and Export Metadata• Reportability and Data Validation Formulas

– If( (MonthOf(Context.Period.EndDate) = 3),(cc:RIADXXXX[P0] + cc:RIADXXXX[P0]) <= (cc:RCFDXXXX[P0] * 0.25) + 10000,TRUE)

• Instructions and Edit Explanations• Automatically Update Reporting Tools

– Update in less than 1 hour


The FFIEC system includes Administrative features as well as the core XBRL ones.

System administrators are able to define users, groups, functional entitlements, user notification events and reporting cycles.

Notifications are part of the automated workflow built in to the system.

Reporting institutions and list of reporting entities can be managed.

Metadata can be imported and extracted.


The Metadata Management Tool (MMT) can authorize users to query, create and update concepts that elements in published taxonomies.


The “Formula” box at the bottom of the screen enables the user to create and edit data validation formulasSome are complex, referencing many concepts and often spanning several reporting periods.Edit explanations are also managed.

Complete testing facility built in.


26 Schedules


Instructions made available by FFIEC taxonomy.


Data validation and capability to link to related elements.


Error explanation for data validation errors.


After data validation and error correction, banker submits report but is notified of the possibility of rejection.


Decomposition Analysis(Decision Tree Analysis)

Call Report data is used to populate the Uniform Bank Performance Report (UBPR) system that provides a comprehensive analytical tool.

Page 25

How to do it checklist √


Page 26

Key Steps

• Learn the basics of XBRL• Select a system to model with well

established metadata• Develop a pilot or proof of concept• Work with a proven solution –

– Less risk and less cost

• Establish working groups to communicate project– XBRL, Submitters, Other Regulators


Page 27

Checklist Use a server and web based system

Include automated workflow

User, permissions and roles management

Taxonomy management - concepts, instructions, references, calculations, formulas and formula explanations

Version control taxonomies

Instance document management Validate data real time

Test taxonomy and formula

Data collection software vendor support


Formula - Validity

'"Charge-offs" on "Loans secured by real estate to non-U.S. addressees" (RI-x Part I, M.2., Column x) of $' & cc:RIxxxxxP0] & ' must be less than or equal to the sum of the components of "Charge-offs" on "Loans secured by real estate" (RI-x Part I, 1.x. through 1.f., Column x) of $' & cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] & '. Please revise your reported data.

cc:RIADxxxx[P0] <= (cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0])

The current balance of X must be less than or equal to the sum of Y?


Formula - Reportability

(ExistingOf(cc:RCONxxxx[P0],false) = false AND ExistingOf(cc:RCONxxxx[P0],false) = false AND ExistingOf(cc:RCONxxxx[P0],false) = false AND (ExistingOf(cc:RCONxxxx[-P1Y/-06-end],0) > 0.05 * ExistingOf(cc:RCONxxxx[-P1Y/-06-end],0) OR ExistingOf(cc:RCFDxxxx[-P1Y/-06-end],0) > 0.05 * ExistingOf(cc:RCFDxxxx[-P1Y/-06-end],0)) OR (ExistingOf(cc:RCONxxxx[P0],false) = true AND ExistingOf(cc:RCONxxxx[P0],0) > 0.05 * ExistingOf(cc:RCONxxxx[P0],0)))

041 - Reporting Status = Agricultural-Small

Each concept is checked against set of questions to confirm institution is submitting correct set of data.


Formula - Quality

'Your bank`s "Charge-offs and recoveries on Credit card receivables" included in the ownership interests carried as securities (RC-S 8.a. + 8.b., Column C, current minus previous) of $' & (cc:RIADxxxx[P0] + cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q]) & ' seem high when compared to the related balance (RC-S 6.a., Column C) of $' & cc:RCFDxxxx[P0] & '. Currently, the sum of the charge-offs and recoveries is ' & ((cc:RIADxxxx[P0] + cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q])) / cc:RCFDxxxx[P0] * 100 & '% of the ownership interests, which exceeds our tolerance of 25%. Please review your reported data, and explain or revise as appropriate.'

If( (MonthOf(Context.Period.EndDate) <> 3),(cc:RIADxxxx[P0] +cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q]) <= (cc:RCFDxxxx[P0] * 0.25) + 10000,TRUE)

Is the outstanding balance reasonable value compared to other time periods?


Formula - Distribution

If FinancialInstitution<=2, FormulasHighRating, FormulasLowRating

• New concept

• Distribute metadata such as formulas, instructions, etc. based on certain criteria like financial condition.


Data Collection Tools

• Web based– Small amount of data to collect

• Desktop tools– Generate .xls from taxonomy and enter data– Submit .xls or .doc and convert to instance document

• Create or use SW vendor application– Update accurately and quickly– Map from submitter systems or hand enter data

• Submitters systems vendors use taxonomy to generate instance document– Submitter transform into format to visually verify data

• Use formulas to validate data

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How long does it take?

It depends


It Depends on…….

• High or low data volume processor• Extent, sophistication and pre and/or post data

validation• Frequency of reporting• Frequency and volume of changes to requirements

– Version control

• Number of analysts and their location• Commitment to adopt XBRL for many or few purposes• Complexity of application• Number of regulators involved


Page 35

FFIEC Call Report Timeline

Research

Join

Develop Demo.

Demonstrate

Issue

Award

Test

Enroll

Test

Process

9-2000 1-2001 12-2001 2-2002 8-2002 6-2003 6-2005 7-2005 8-2005 10-2005

XML Alternatives

8,200 Banks

XBRL US

Develop demonstration/feasibility product

Senior Executives

Request for Proposal

End to end test & application accepted

All 8,200 banks into system

100 Bank test

Contract to UBmatrix and Unisys


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Taxonomy Development and Proof of Concept 20 Weeks

1

2

2

4

2

1

8

0 1 2 3 4 5 6 7 8

Plan – Stakeholder Communication

Initiation – Training

Design – Taxonomy

Develop - Taxonomy

Develop - Instance Document

Test - Taxonomy

Proof of Concept Development

Tas

ks

Task Weeks


Include in timeline

• Existing metadata conversion to Taxonomy• Existing data conversion for sample test data• Custom data mappings• Custom web UI for Taxonomy Maintenance • Custom web UI for Instance document display

and management • Custom Instance document validation

workflows • Custom desktop clients• Custom ETL for a Data Warehouse or analysis

package

Page 38

What are the results?


Page 39

FFIEC Performance Metrics

• Process 8,200 banks, 114,800,000 data elements

• 15 Seconds - XBRL and data validate per bank instance document– 14,000 to 15,000 data elements per validation pass

• Seven quarters data for every bank reports with 2,000 data elements

– Execute 7,000 formulas– Report – Approve, Review or Reject

• Clean rate of 90% versus 70%


Page 40

XBRL Call Report Benefits

• Cost Savings: $26 million over 10 years

• Timely Data: 2 days versus 60 days

• Accurate Data: validate prior to submission

• Independence: business analysts manage the reports – no need to know XBRL

• Efficiency: update systems automatically versus manual entry

• Burden Reduction: validate data real time, update software from web, reuse data for other regulatory requirements

© UBmatrix 2005

Stakeholders XBRL Regulatory Report Benefits Regulated

Entity Regulator Vendor Analyst

Reduce Reporting Burden:

1 Get It Right the First Time

2 Partially Automate Data Entry

3 Reuse Data For Reports Internal or External 4 Integrate Other Regulatory Reports 5 More intelligent, powerful and easy to use software

Improve Data Timeliness:

6 Publish Data Shortly After Receipt ● ● ●

7 Create and Deploy Event Driven Reports ● ● ●

Improve Data Accuracy: ● ● ●

8 Validate Prior to Submission ● ● ●

9 Deploy Unique Set Edits Per Set of Regulated Entity. ● ● ●

10 More Accurate and Less Burden: Provide Consistent Validation Edits, Vendor Software

● ●

11 Simplify Programming Effort: Provide Integrated and Structured – Forms, Edits Instructions, Error Messages, Explanations, Reportability Rules

12

Improve Flexibility: Update Report Requirements More Easily – Back End Programming Effort Eased

●

Operate More Efficiently ● Improve Risk Management

Page 42

www.UBmatrix.com

SolutionsSolutions

Phil Walenga, Director Financial Services, UBmatrix. Inc.

[email protected]

1-989-837-5959 Work

1-989-600-8525 Cell

See us at our booth or suite for more demonstrations

Documents

XBRL for Regulatory Reporting “ How to do it cost efficiently, quickly and well.” UBmatrix は業界第一の XBRL ソフトウェアを提供し ます。 Visit us at: Phil

XBRL for Regulatory Reporting “ How to do it cost efficiently, quickly and well.” UBmatrix は業界第一の XBRL ソフトウェアを提供します。 Visit us at: Phil