Central Bank began to accept accounting records in new digital format. Developers’ opinions
Central Bank initiated the pilot XBRL project
As it is became known to CNews, the Bank of Russia (Central Bank, CB) began to accept in a test mode accounting records from a number of regulated companies, while this records are to be drafted with the use of specified forms for their following convert to the XBRL format (eng. eXtensible Business Reporting Language). Nowadays the regulator uses this format to collect and process accounting records of non-credit financial organizations (NFFO – insurance companies, investment and pension funds, broker dealers, microlenders, credit co-operatives etc.). This pilot project involves 21 company including affiliated structures of Sberbank, Alfa-Bank, Tinkoff Bank, exchange markets of Moscow and Saint-Petersburg, non-state pension fund “Lukoil-garant” and others.
According to Olga Goncharova, Head of the Department on Collection and Processing of Accounting Records of NFFO in CB, from the date of January 1, 2018 the accounting records delivery in a new format will began mandatory for the majority of NFFO. As a reminder, CB still accepts it in XML and even older format EDIFACT.
The launch of the project has been preceded by two-year long full-scaled research of CB, which resulted in XBRL getting the highest integral assessment compared to other formats of electronic data exchange, which are XML, SDMX, EDIFACT and FpML.
We should also note that by the order dated September 1, 2015 the Central Bank initiated the development of the business group on the introduction of XBRL, which includes not only regulator’s employees, but also representatives of a number of ministries, federal services, commercial banks, NFFOs, consulting companies, professional associations, self-regulated organizations and IT companies, which are potentially ready to make their offers to Russian emerging market. We quote some of these IT companies below.
Elena Lukutina, the partner and Head of Operational Activities and Technological Development of Neoflex considers XBRL the perspective format for non-credit financial organizations. “What is for banking sector, the CB’s possible transfer to accounting records in XBRL is not so clear. Bank-oriented existing methodology on forming data for providing accounting records has been formed for decades. It allows collecting data in both various sections and as is. The very method of collecting data is unlikely to be replaced in the nearest future. However, Lukutina still emphasizes, that the use of XBRL is possible for the banks as well. “But it should be realized that that may take more time than it seems”.
Elena Lukutina believes that while the Central Bank claimed to provide its own converter, this area is not of a big interest for IT companies. “However, the collection of information and data development for its further formation into an accounting records in XBRL format is a potentially interesting niche. And in that case a converter would be just an integral part of the solution. And concerning market’s banking sector that is a major interest for Neoflex, soon after Central Bank will make up its mind on transferring bank to a new format of accounting records, we will be ready to realize new functionality for our clients, and we won’t have to develop some conceptually new instruments. The data in our Neoflex Reporting system that is to be used in the preparation of accounting records will allow forming new records as well”.
Full text of the interview is published in Russian on