Dutch Standard Business Reporting

SBR, the Dutch model
Bern

September 9, 2011

Paul Snijders
Co Chair XBRL Netherlands

CEO Semansys Techologies

One common goal

To enhance

Netherlands Corporation.

By:

creating a single reporting
infrastructure for easier filing
processes and thus lowering
reporting effort and costs for all
companies and reduce the
administrative burden!

The landscape

 Government and business in the 21 st century:
a set of complex relationships:
 The “business of government” is a complex thing
 The “business of business” is a complex thing
 The “business” of government and business interacting is even more
complex
 More and more regulation is implemented to keep track of everything

 The only way forward is reducing this complexity by
standardization of filing processes:

3 Standard Business Reporting Programme
A Netherlands government initiative

Standard Business Reporting
is ALL about standardization

Data Process

Re-use of ...

Technology

4

The basics of Standard Business Reporting

 The basic process of SBR is standardization of:

 Data:
 XBRL-Taxonomies

 Processes:
 Standardized filing processes through which agencies

Technology and technics:
 A standardized generic system2system communication
 Intelligence to recognize messages and understand the processes of
which they are part

A Netherlands governement intitiative

SBR-NL History

 From development to implementation
 Government goes for mandate (may 2011)

 Delivery of all major tools:
 NL-Taxonomy framework
 Transaction port (Digipoort)

 Initiation of Netherlands Taxonomy Project
 Get consensus of all parties, (Ministries, Government bodies, Accountants, Software
industry, Businesses)
 Design taxonomy Architecture NT (Netherlands Taxonomy)
 Development and design for a Generic Infrastructure

 First experience with the potential of XBRL:
 First European projects executed for waterboards, municipalities and Provinces

 Government priority to reduce administrative burden for business:
 The “fuss” of complying to government regulations


Why a SBR program?
SBR means is multi industry, multi purpose, shared benefits for all:
 Business to government
 Currently: Tax office, Chamber of Commerce and Central Bureau of Statistics
 Expected: innovation subsidies, government procurement
 Business to business
 Currently: Credit reporting to banks
 Future: insurance, pension funds
 Government to Government:
 Expected: reporting of schools to the Ministry of Education, health care and others

In short: create an administrative infrastructure which allows for easier
filing processes, to less costs, thus lowering the overall level of
transaction costs


SBR-NL Program Challenges

 The SBR-NL Program task was seeking co-operation:
 in a competitive market
 on issues that have deep impact for business- and government
processes
 were not understood by many

 The challenges for SBR-NL Program:
 Understanding and prioritizing the issues to be resolved for
implementation
 Finding the best solution to the various issues
 Seeking the buy-in of organizations involved
 Getting the market to actually start using XBRL


SBR-NL in action
 The SBR Council:
 High level representatives of business and government
 Strategic decision making

 The SBR Platform:
 Representatives of business community and government
 Hands-on experience (“feet in the mud”)
 Constantly generating issues that may block the uptake of SBR

 The SBR Expertgroups:
 Expertgroups for Data/Taxonomy, Processes, Marketing&Communication
 Bringing together all available expertise in the Netherlands (and from outside, if needed)
 Finding solution for the issues

 The SBR Program team:
 Supporting the various groups with expertise
 Pursueing the actions, stated in the Implementation plan
 Seeking the policy-guidance from the Ministry of Economic Affairs, Agriculture & Innovation


Process
improvement
Efficiency
Less burden Government

Shared vision
Business Common Goal
Accountants

Software Better services
Enhanced
products

10

What’s up for later?

 In the late 19th century the provision of electricity to
homes and business was an issue; now we simply tap it
from the wall-plug

 Now SBR is a difficult thing to master: in ten years time
hardly anybody will notice that his software is XBRL-
enabled; filing reports is a non-issue by then


The core
component of SBR

XBRL
Taxonomy

“The taxonomy is like a tree”

revenue
leaves: elements
profit costs

Tax Filing
statistics
financial
branch: reporting
domain or specific elements

trunk:
common or shared elements

13

`Do we need one standard; Clean up of current


Merge separate taxonomies into one

15

Merge separate taxonomies into one

Generic Elements Netherlands
(Gen Base)
16

Standardization of data:
multi domain and cross agency taxonomy

XBRL
Authority Z report
Company
Authority Y Company
Company
Authority X
request Company
Systems
Systems

Generic Elements Netherlands
(Gen Base)
17

XBRL: 3 levels of standardization

taxonomy
Content

architecture Taxonomy Architecture
Structure

Dimensions Formulas Inline
XBRL
specification XBRL Spec2.1a Standard
18

XBRL taxonomy architecture

 Because the XBRL spec. 2.1 is flexible you have
many solutions for one problem
 multi domain
 multi agency

 XBRL projects have different goals.

 Taxonomy design should be based on our project
goals.
 glue the taxonomy pieces together
 ‘plug and play’ new extensions (‘branches’)

19

A taxonomy is never static

Key processes

• Adding new
domains

• Normalization

• Harmonization

Little re-use Re-use
20

SBR XBRL taxonomy building principles: hierarchy

 The taxonomy is the representation of legisation and rules

 Always choose to reduce the regulatory- and reporting burden
for businesses
 facilitate mapping
 facilitate instance creation

 Design (and modularize) the taxonomy to support use and re-
use of elements and components (‘branch vs. new tree’)

 Architecture facilitates taxonomy maintenance with coherence
and consistency

 Comply with established international ‘best practices’
21
 ...

Netherlands XBRL taxonomy architecture

reports

domain specific

national

international

22 22

Statistics Financial VAT
filing Statement filing
Reports

Elements

Legislation & Rules

Definitions

European legislation Financial Reporting Tax legislation
GAAP

23

Building taxonomies? standardization first !

24

Wrap up ...

• Government and regulators have the to innovate (too)
• Harmonization and normalisation are key data
processes.
- They doesn’t just happen, they need to be organized
• The taxonomy is not about evolution, it’s intelligent
design.
- The XBRL taxonomy reflects our legislation and rules but it’s design is
based on our project goals

25

“You get the taxonomy you deserve”

Standard Business Reporting Programme

www.sbr-nl.nl
info@sbr-nl.nl

Paul Snijders

Paul.snijders@semansys.com
Paul.snijders@xbrl-nederland.nl

27

Dutch Standard Business Reporting

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