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TOKYO STOCK EXCHANGE’sXBRL project

AOSEF Market Data & Technology Collaboration Workshop2007 Nov.

Ver.1.0

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Overview of 　　　　　　　　　　　　　　　　　　　　　　　　 the disclosure system in Japan

Timely disclosure(based on the rules of the stock exchange)

Statutory disclosure(based on the Securities

and Exchange Law)

Disclosure System

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Statutory Disclosure Timely Disclosure・ Securities report (within three months subsequent to balance sheet date)

・ Semi-annual report 　　　　　　　　　　　　　　　　　 (within three months subsequent to semi-annual balance sheet date)

・ Quarterly report 　　　　　　　　　　　　　　　　 (under consideration to make the report statutorily mandatory)

・ Extraordinary report 　　　　　　　　　　　　　 (without delay)

・ Preliminary report of Earnings Digest (average time required: about 43.5 days) 　 r 　　　

・ Semi-annual Preliminary report of Earnings Digest (average time required: about 43.4 days)

・ Quarterly report 　　　　　　　　　　　　　　　　　　　　 (average time required: about 33.9 days)

・ Decisions and occurrence (promptly)

Comparison 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 between statutory and timely disclosure

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(1) Submit and register disclosure data to the TSE online

(2) Give explanations of disclosure data to the TSE over the phone

(3) Output disclosure data on TDnet terminals set at media institutions

(4) Obtain certificates (at any time after disclosure)

(5) Enable the public to view disclosure data (TSE’s web site, TDnet database service)

* The public can view the data on the TSE’s Web site (http://www.tse.or.jp/) or by using the database service.

All Listed companies in JapanMore than 4,000 companies

InvestorsContractors

Mediainstitutions,etc.

DatabaseService

Issuecertificates

Register

Web Real-timeservice

TDnet

TDnet (Timely Disclosure network):1998 Apr. ～

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(1) Submit and register disclosure data to the FSA online

(2) Output disclosure data on EDINET terminals set at the Local Finance Bureau.

(3) Enable the public to view disclosure data (EDINET web site*)

　　 https://info.edinet.go.jp/EdiHtml/main.htm

All public companies in JapanMore than 12,000 companies

Investors

Register

EDINET

EDINET (Electronic Disclosure for Investors’ NETwork):2001 Jun. ～

Local FinanceBureau

EDINET Web Site

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Flow of information disclosure through TDnet and EDINET

Statutory disclosure (Financial Services Agency)

Listed company

Timely disclosure

(TSE)

Investors

Information available for the past a month: free of charge

Information available for the past five years: charged

Internet, TV broadcasting, information terminals

Internet on a real-time basis

Timely Disclosure network

Electronic Disclosure for Investors' NETwork

Internet on a real-time basis

Internet on a real-time basis

Press and media companies, etc.

Timely disclosure information access services

TDnet DBS

TDnet

EDINETFinancial Services Agency website

Local Finance Bureaus

Available for public inspection at reading room

・ Securities report・ Current report, etc.

・ Earnings digest・ Timely disclosure 　　 report, etc.

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Effect of implementing XBRL 　　　　　　　　　　　　　　　　　　 for financial informationInvestors and analysts (improved secondary use of financial information)

They can easily process and analyze data without re-entering them, as they can download XBRL data from TDnet and feed it directly into their relevant systems.

saves time and avoids clerical errors in re-entering or processing the data.They can process large volumes of financial information.

Listed companies (shorter time and more efficiency achieved for preparing disclosure data)

Shorter time for works in relation to financial documentsPrevention of mistakes during preparation thanks to logic accuracy checking

functionProvision of detailed data to investors

Securities exchanges (improved accuracy and sophistication for management of listed companies)

Faster examination of submitted documents by applying automated logic accuracy checks

Provision of more accurate disclosure documents with sophisticated logic accuracy checks

Realization of sophisticated management of listed companies by capturing large quantities of detailed financial data in the system

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Future image centering on the TSE

XBRL technologies will be consecutively utilized to receive and deliver timely disclosure information. XBRL technologies will be consecutively utilized to provide timely disclosure information. In particular, the taxonomy for statutory disclosure operated by the Financial Services Agency (FSA) and the taxonomy for timely disclosure will be made consistent.

Input by Input by XBRLXBRL

Listed

companies

Tokyo Stock Exchange

Web Service

Media institutions,

etc.

Output Output by XBRLby XBRL

Investors

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Others(Text base)

First page（ summary ）

Foot notesFinancial Statement

Time table of implementing XBRL to Earning Digest

XBRL ＰＤＦ ＰＤＦ

XBRL

2nd step

2008 ～

Final step

1st Step

(Current)

PDF+CSV(summary)

XBRL

XBRL

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Issues and solutions in implementation of XBRL　　　　　　　　　　 to earnings digests (1)

Diversity of input forms Issue

Earnings digests prepared by listed companies have various items of account and layouts.

SolutionPossible items of account to be entered can be displayed for

respective entry cells of an input template by analyzing financial data based on past cases.

Possible multiple entry templates can be provided by analyzing the pattern of layouts based on past cases.

The preparer will be able to switch on and off entry fields.Each listed company may have and manage its own taxonomy.

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Issues and solutions in implementation of XBRL to earnings digests (2) Issues in relation to rendering Issue

Display on the monitor of earnings digest with complicated formsPrintout in the same form as the current PDF file

SolutionRendering information to display the XBRL earnings digests in the similar layout to

PDF file is to be set in the taxonomy.Any data displayed based on the rendering information are converted into PDF form

and provided to users.

Mitigation of workload for preparing entities Issue

Mitigation of complexity and redundancy of preparing XBRL dataClarification of benefits for preparers in implementing XBRL

SolutionTaxonomy common to EDINET and TDnet is to be applied and the registration

method for each system is unified, resulting in unified management of financial data in Japan.

Instances in financial statements are automatically reflected as those in summary information.

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Changes in works arising from implementation of XBRL to TDnet (prior to XBRL implementation)

Investo

rs

EDINET

TDnet

Securities reports, etc.

Earnings digests

IR data

Tax returns

Various filing documents

Websites

e-tax

Regulatory operated system

National Tax

Agency

Regulatory agencies

Press,

Information vendors,

analysts,

etc.Listed companies

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Changes in work arising from implementation of XBRL to TDnet (after implementation of XBRL) - unified preparation of information to be submitted-

EDINET

TDnet

e-tax

ＸＢＲＬ

Listed companies

Websites

Regulatory operated system

Investo

rs

National Tax

Agency

Regulatory agencies

Press,

Information vendors,

analysts,

etc.

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Changes in work arising from implementation of XBRL to TDnet (after implementation of XBRL) -one-stop filing-

ＸＢＲＬ Corporate

information dissemination

system

Listed companies

Websites

Press,

Information vendors,

analysts,

etc.

Investo

rs

National Tax

Agency

Regulatory agencies

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Time table for implementation of XBRL

project to TDnet

Renewal of XBRL site (Oct. 2007)The TSE has provided to data users XBRL data prepared based on the financial data for fiscal 2005 ～ 2007.The TSE has publicly made the new TDnet taxonomy available to users and consider their responses, thus enhancing the quality of the taxonomy.

Test operation of new TDnet (May 2008)The TSE will ensure a smooth transition to the new system by providing the system to preparers in advance.

Service in : new EDINET (April 2008)

Service in : new TDnet (July 2008)

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Thank you for your kind attention.