48 COREP validations – how will you know if your disclosures fail the test?

Recently the FCA/PRA announced a significant change to its COREP reporting requirements [http://www.fca.org.uk/your-fca/documents/crd-iv-validations-for-q1-reporting]. There are a number of known errors in the EBA taxonomy and consequently the UK regulator had previously indicated that it would be treating all validations as ‘warnings’ that would not result in failed submissions.

However, upon further investigation the FCA has now issued a revised notice asserting that it will be checking a total of 48 validations (relating to COREP Own Funds and Leverage, Large Exposures, LCR and NSFR) in disclosures issued to meet the impending 30th June remittance deadline. Outside the 48 validations highlighted above it will continue to ignore the other incorrect EBA validations and treat them merely as warnings for GABRIEL submission purposes.

This means that filers must be vigilant and their XBRL production systems must be able to cater for this new set of important validation rules. But, how do you know whether your XBRL documents will pass the test?

There’s one sure way to find out – by using Magnify®, our XBRL document review product. The new validations have now been incorporated into Magnify, so it’s easy to check your submissions against the new rules. If there’s a problem, Magnify will highlight the error so that you can take remedial action. The even better news is that Magnify also lets you understand what is actually contained within the XBRL document you’re about to submit; it renders the document in a human-readable format, so you don’t have to struggle with the impenetrable XBRL. So, when senior executives need to sign off the completed reports, Magnify shows clearly what is being reported.

In short, Magnify can save you time and effort – and offers peace of mind that your disclosures will not be rejected

Time is running out for submission of the first COREP filings in XBRL

It’s been a hectic week, with lots of enquiries about our Seahorse® XBRL conversion solution for COREP filings. It’s true that some callers have been under the misguided impression that the first filings need to be made by the end of May, but it’s obvious there are still lots of financial institutions out there that have still not settled on a suitable reporting solution to handle their first regulatory filings under the new CRD IV regime.

 
The deadline for submission of the first reports in XBRL was, in fact, moved back to the 30th June, but it’s still not long if you’ve not settled upon a solution.

 
If you’re still looking for a simple, cost-effective solution to the compliance issue, then do take a look at Seahorse. With its simple to understand workflow, Internet browser-based interface and highly secure environment, Seahorse provides an easy-to-use way of converting your COREP reports from an Excel spreadsheet into the XBRL document needed for filing. As a cloud-based application, several users can work simultaneously on individual report tables, creating further efficiencies and considerable time saving in the XBRL report production process.

 
The good thing, too, is that Seahorse is underpinned by the same stringent XBRL validation that is being used by the FCA/PRA in the UK for the receipt of filings into GABRIEL.

 
Take a look at the Seahorse video to see how quick and simple it can be to convert your data.

 

Magnify handles EBA rules blacklist

The EBA has now produced an official “black list” of rules that should be ignored.  The full list can be found on the EBA website.

Helpfully, Magnify®, CoreFiling’s XBRL document review product, already has black list support, so that this list (or any further updates) can be incorporated in order to suppress the blacklisted formula.

Who helps when your COREP submissions fail? (part 2)

Last time, I discussed the need for smaller financial institutions to take a serious look at the XBRL credentials of COREP software vendors offering low-end XBRL solutions and highlighted the advantages of trusting XBRL expert CoreFiling and our flexible, easy, inexpensive Seahorse® solution.  However, larger banks and financial organisations needing a tightly integrated global reporting framework will require a more strategic approach.

Here, the need for proven XBRL expertise becomes even more crucial, but many traditional banking software vendors have little or no XBRL expertise and rely on externally sourced plug-in modules to cater for the XBRL data conversion.  Such modules often rely on hard-coding methods to detect the XBRL taxonomy against which the reporting documents are created.  This may result in a lack of flexibility and agility to respond when regulations change and the taxonomy alters.

Depending on the client situation, CoreFiling deliver robust yet flexible solutions in the form of either packaged applications, the XBRL Disclosure Management Platform™ (XDMP), or commercial-off-the-shelf (COTS) components integrated into a client environment.  Our solutions are taxonomy driven and built so that new versions of the taxonomy can be dropped into the system without the need for hard re-coding each time.

For example, the XDMP solution is the culmination of a highly focused development effort by CoreFiling in conjunction with its partner EMC, experts in document management, and a major consultancy firm.  It is based on COTS components and, just like Seahorse, it is underpinned by the True North® XBRL processing and validation engine, widely regarded as the most conformant and powerful validator on the market; the UK’s Financial Conduct Authority has chosen True North for its EBA reporting requirements and validation of the COREP and FINREP filings it receives from the UK financial market.

CoreFiling’s long-standing commitment to the furtherance of the XBRL standards and our active participation in the XBRL consortium that oversees the development of the XBRL specifications means that we have an exceptional understanding of XBRL technology, which in turn informs our development process.  Based on our extensive experience and insight, we are ideally placed to help our clients implement successful, flexible and compliant solutions.

Even if your traditional vendor is still struggling to produce XBRL documents in time for you to meet your COREP obligations, there’s no need to feel stuck. CoreFiling offer a safety net in the form of Seahorse to help filers overcome the immediate XBRL reporting obstacle.

Who helps when your COREP submissions fail?

The market is rife with vendors offering ‘inexpensive’ solutions to the imminent problem of filing COREP disclosures to National Competent Authorities around Europe.  In particular, smaller firms with relatively straightforward needs may be tempted by the promise of ‘cheap and cheerful’ products.  Creating the XBRL documents is a fairly simple process, but organisations should think through the wider issues.  Licensing the right application will not be enough, whatever your vendor tells you.

Many regulators are still finalising their reporting rules, but even at this late stage the EBA’s guidelines are quite likely to change before the due date for the first submissions.  Some vendors will struggle to cope when the regulatory requirements change, not only before the initial filing date, but when further alterations occur, as they will surely do over time.  To what extent do vendors really understand the implications?  How quickly can they react to ensure that fully compliant XBRL is generated?  What happens if things go wrong?

Proven XBRL expertise is vital, especially at the service level, if vendors are to overcome any problems encountered by their clients.

What makes CoreFiling different?  We have been developing XBRL products and offering expert XBRL consultancy for well over ten years.  CoreFiling are the firm that provides XBRL support to many of the world’s leading integrators and consultancy firms.  Our expertise is built on a deep understanding of the XBRL standard.  CoreFiling are active contributors to the XBRL consortium that oversees the XBRL specifications; the company undertook most of the work in developing the key technical specification behind Eurofiling.  This affords us deep insight into the standard and informs our products and services.

Seahorse®, available via key CoreFiling partners, provides a straightforward, Excel-based solution for COREP, FINREP and Solvency II filing.  However, behind Seahorse lies over 200 man-years of intellectual property and proven expertise.

You may be thinking that Seahorse sounds fine for smaller organisations, but what about larger financial institutions with more complex needs?

More in a few days’ time…

Explore the GRI Taxonomy with the help of Yeti

The latest addition to CoreFiling’s Yeti® taxonomy exploration environment is the GRI (Global Reporting Initiative™) Taxonomy 2013, launched on 7th November.

Developed in association with Deloitte, the GRI Taxonomy 2013 is designed to allow companies to begin producing sustainability reports in XBRL in accordance with the G4 guidelines.  The GRI aims to promote a more sustainable worldwide economy, with particular focus on ethical behaviour, social justice and environmental care.

Although sustainability reporting in XBRL has not yet been mandated, the GRI has launched a Voluntary Filing Programme (see: https://www.globalreporting.org/reporting/reporting-support/xbrl/Pages/Voluntary-Filing-Program.aspx) to encourage organisations to begin creating XBRL disclosures that investors and other stakeholders can then review and compare.

In support of this initiative, Yeti lets users gain an insight into the new taxonomy by presenting the underlying concepts simply and clearly.  Even beginners will appreciate the intuitive navigation assistance and powerful search facilities, which make it easy to drill down into the detail and to find particular concepts.

Start exploring the new GRI taxonomy today!  There’s easy access at http://bigfoot.corefiling.com/yeti/resources/yeti-gwt/Yeti.jsp

Worry-free taxonomy development

One thing we’re really proud of here at CoreFiling is our ability to deliver the highest quality software.  We employ exceedingly bright, highly skilled software engineers, developing code using Agile methodologies.

However, the one thing on which we constantly rely to ensure top quality output is our own continuous integration product, Decimate®.  It not only underpins our own development philosophy but is also made available to our customers, and plays an important role in ensuring the success of client taxonomy development projects. In fact, Decimate can support the overall build-test-release cycle of any development project.

The main advantage of using the continuous integration philosophy is that it provides on-going quality assurance and testing throughout the process.  Developers do not have to wait until they are finally ready to release to discover build failures.  Decimate confers a higher degree of confidence to the development process.

Typical development projects involve several people working on the same files simultaneously.  Without a common repository for the seamless merging of changes, chaos is likely to ensue. Dependencies between files need to be handled effectively as there may be unforeseen impacts from one to another.  Decimate guards against these potential pitfalls behind the scenes, by packaging and automatically testing the latest version every time a user makes changes to the taxonomy and confirms those changes back into the central repository.

What’s more, if the build encounters problems, Decimate gives developers very useful information to help determine the source of the issue so it can be corrected prior to the next build.  It’s colour-coded too, for ease of review.

Get ahead with your taxonomy development project with Decimate!  It’s the worry-free option.

Learn more at:  http://www.corefiling.com/products/decimate.html

How automated is your re-use of last year’s iXBRL tagging decisions?

Speed up the tagging process in year two and the creation of filings for companies in the same corporate group.

Seahorse makes excellent use of existing tags.  It can re-use existing tagged documents as the basis for this year’s filings, even if those documents contain only a couple of similar pages and on the surface look rather different.  Seahorse is intelligent enough to recognise the matching pages and automatically re-uses the existing tags in the new document.  Remember that the rest of the document will then be automatically tagged, leaving you just to confirm the confidence-rated suggestions.  It will certainly save you time and give you much higher quality documents.

Seahorse, the automatic choice.

Vast amount of iXBRL tagging knowledge at your fingertips

Seahorse’s learning engine has accumulated an abundance of iXBRL tagging knowledge distilled from the thousands of Word and Excel accounts uploaded to our cloud-based system since the start of the HMRC mandate.

Why is this important?

It means that Seahorse’s tagging suggestions are constantly refined in line with our clients’ professional accounting expertise.  You benefit from more confident suggestions to help you review and confirm the appropriate tags.  It’s quick, easy and accurate.

Get the Seahorse advantage for your business!

Bad iXBRL tagging experience? Switching to Seahorse® is easy

Many accountants have told us that the iXBRL tagging solutions they chose in the first year have proved unsatisfactory, making the conversion process very painful.  There were lots of reasons behind this:  some processes were too complicated, others overly time-consuming, many more not intuitive enough.  Consequently, many businesses struggled to comply with the HMRC iXBRL mandate.

If this was your experience last year, it’s probably time for a change.

Switching to Seahorse doesn’t mean starting from scratch, as all tables in your document will be automatically tagged using Seahorse’s unique suggestion engine

Tagging accounts can seem an onerous task, but Seahorse makes it really easy to tag both tables and text in Word or Excel documents.  Behind Seahorse lies a powerful ‘learning engine’ that automatically provides confidence-graded tagging suggestions.  You’ll benefit from all the tagging that was put through the system last year, as Seahorse’s suggestions are based on its cumulative knowledge of all similar tagging decisions made by the Seahorse user community.  As it’s a SaaS (Software as a Service) solution, it learns from thousands of accounts, not only the ones you have tagged, leading to constantly improving suggestions and exceptional help with your tagging process.  This dramatically reduces the time taken to tag your Word or Excel documents.

Being an internet based solution there’s no IT overhead, no software to install, no software updates and no maintenance worries.  Taxonomies will always be up to date.

And if you’re wondering what happens in subsequent years, rest assured that Seahorse retains all the tags you choose, so they can be easily reapplied to make the process even faster and simpler in the future.

Avoid the pain, harness Seahorse.