Standardised definitions for efficient business reporting with Taxonomy Development
Before the introduction of Standard Business Reporting, the world we knew ran on paper, PDFs and individual Word or Excel files. This resulted in excessive amounts of unstructured data and poor to no standardisation. It was the source of many headaches for financial departments, banks and regulators alike. SBR emerged as the solution to this problem. To implement it correctly you need a taxonomy: a precise specification of what needs to be reported to the requesting party. The taxonomy provides clear definitions, enabling reporting parties to submit the exact information required.
How does it work?
To develop a taxonomy, we take the needs of the requesting party as the starting point. What are the applicable laws and regulations? Which reporting model needs to be followed? Next, we develop a dictionary from these laws and regulations. “Assets,” for instance, is a dictionary item. The next step is to build the relationships between all of the items defined in the taxonomy.
How is it delivered?
Taxonomies are typically delivered as a package that contains all files that are defined within it. The taxonomy is a blueprint of what the report should look like. It can be implemented system-to system or human-to-system (using a portal).
Who is this for?
- Banks and banking associations that are adopting SBR, such as SBR Nexus;
- Chambers of Commerce that want to request standardised reports from businesses;
- Government authorities that want to request standardised reports from other public authorities or from businesses;
- All other parties who request (business) information and want to receive and process this information in a standardised way.
- Structured data
- Increased comparability between reports
- Re-usability: an element defined in a given taxonomy can re-used in reports for other requesting parties.
- Validated data: information is checked against the taxonomy, which contains mandatory elements and checks whether relationships are accurate.
Why Visma Connect?
Visma Connect is a leader in the implementation of Standard Business Reporting. We have developed taxonomies for the Dutch Chamber of Commerce, which now uses over 10,000
predefined elements to streamline (financial) business reporting in the Netherlands. We have also developed a taxonomy for the State of Florida, the first state in the U.S. to require reports in machine-readable XBRL format.
Say goodbye to reporting variability and ease administrative burdens. Visma Connect is the foremost supplier of tools, taxonomies and expertise for information and data exchange. Use the button below or call us and ask for René van der Meij.