European regulators opt for XBRL reporting system
By George Crooks, Domain Expert, Wolters Kluwer Financial Services' FRSGlobal
The UK Financial Services Authority (FSA) issued a statement on 25 July 2012 that two European regulators are in favor of eXtensible Business Reporting Language (XBRL) for financial reporting purposes.
The European Insurance and Occupational Pensions Authority (EIOPA) and European Banking Authority (EBA) instructed the National Supervisory Authority - the body responsible to ensure harmonization of the European-wide policies - of their intentions to opt for XBRL as the preferred choice for receiving the quantitative reporting data from the national supervisors.
The FSA stated that the two European Supervisory Authorities, EIOPA and EBA are in favor of XBRL as it approximates closely to the standards the authorities have for data flow consistency and efficiency. The report states that the insurance and banking watchdog plan to make their preferred choice known by incorporating the taxonomy into regulatory directives of Solvency II and the Capital Requirements Directive (CRD IV) respectively. The FSA also expressed intentions to follow in the European watchdog’s footsteps by - subject to further consultations - planning to collect regulatory quantitative reporting data from the UK insurance and banking fraternity using the XBRL standards and formats. The FSA said that the specific methods by which firms will be required to submit the reports the UK supervisors will be confirmed after the final templates and taxonomies have been issued by EIOPA. XBRL however, is guaranteed to feature in the submission process as the FSA confirmed that they will as a minimum intend to be able to accept submissions in XBRL. (more...)