Value Proposition for use of XBRLIn the Business Reporting Supply Chain

(BRSC)

www.xbrl.org

Presented by:Liv Apneseth WatsonChief Product Officer & Founding MemberXBRL International, Inc.

Agenda

• Some ‘problems’ with today’s business reporting model

• What is XBRL?• Whitepaper: Value Proposition for use of

XBRL In the Business Reporting Supply Chain (BRSC)

• The Information Age• Final Remarks

Some ‘problems’ with today’s business reporting model

• Business reporting information has no shared context • Analysis of the information is conducted via macros that are embedded

within the applications and are not reusable by others …….• information labels are not consistent from one application to another• information is not independently validated • information is not connected to other related resources across applications• Without a common platform data must be entered or transferred into many

different systems using proprietary software, integration portals, and disparate solutions.

• Companies have to do the same thing multiple times and in several different ways to meet all of the reporting requirements, increasing the cost and complexity of the process.

• Human error can also be introduced in systems that are not automated.

PwC 4

What is XBRL?International business information standard

• An International global membership consortium

• That developed an international business information standard; freely available

• Designed specifically to address pervasive business reporting process problems

• Mandated by economics and regulators

• “Bar Code” for Business Information • Adds structure (meaning) to company disclosures• Enhances information processing, reuse, analysis and reporting• Disclosure neutral • Taxonomies available for: Indian/US/IFRS GAAP, other statutory GAAP,

MD&A, CSR, GRI, Proxy, Corp Actions, Carbon Disclosure, Micro Finance, Legers/sub-systems, other non-financial concepts

Validation

Standardization

What is an XBRL Taxonomy– More Than Just Definitions

CalculationCash = Currency +

DepositsFormulas

Cash ≥ 0Contexts

US $FY2004

Budgeted

LabelcashCashEquivalentsAndS

hortTermInvestments

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

PresentationCash & Cash Equivalents

XBRLItemXBRLItemXBRL

<200>

PresentationComptant et Comptant

Equivalents

PresentationGeld & Geld nahe Mittel

PresentationKas en Geldmiddelen

Presentation现金与现金等价物

Presentation現金及び現金等価物

PresentationДеньги и их эквиваленты

PresentationГроші та їх еквіваленти

Whitepaper: The Value Proposition for use of XBRL In the Business Reporting Supply Chain

Additional Whitepapers:

Value Proposition for use of XBRL in the Business Reporting Supply Chain (BRSC)

• Eric Cohen• Margaret Long• Rick Plotka • Dan Roberts• Elisabeth Scherr• Liv Watson

• This paper shows how XBRL provides a common communication platform that can create efficiency, accuracy, and costs savings at each stage in the business reporting supply chain if used strategically.

• The audience of this paper is creators and users of business reporting data.

(in alphabetic order)

ExternalBusiness

Reporting

BusinessOperations

InternalBusiness

Reporting

Investment,Lending,

Regulation

Economic Policymaking

The Business Reporting Supply Chain Process and Participant Stakeholders

Processes

Participant Stakeholders

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies CentralBanks

XBRL Financial Statements

and Non-Financial Integrated Reporting

XBRLGL, the Journal Taxonomy and

Non-Financial XBRL Data

NG

Os,

Com

mun

ity G

roup

s,

Asso

ciati

ons

Suppliers & Subsidiaries

Source: XBRL International, Inc.

< IIRC, CSR & ESG Data >

< Financial Data >

Participants of the BRSC

Benefits of XBRL in the BRSC

Source: Mike Willis, PwC

INT

EG

RA

TE

D R

EP

OR

TIN

G S

TAK

EH

OL

DE

RS

EC

OS

YS

TE

M

Subsidiaries

Overseers

Investment Community

INTERNAL STAKEHOLDERS

Investment Community

Institutional InvestorsRetail Investors

Infomediaries

MediaSocial MediaData AggregatorsFinancial Publishers

Overseers

RegulatorsLawmakersPolicy MakersCentral BanksNGOsCommunity GroupsAssociations

Service Providers

External AuditorsExternal Legal Professional ServicesTechnology VendorsTrading Partners

INTERNAL STAKEHOLDERS

ManagementEmployees/StaffBoard/Governance

EXTERNAL STAKEHOLDERS

INTEGRATED REPORTING

STAKEHOLDER ECOSYSTEM

Infomediaries

Service Providers

Source: Brad Monterio & Liv Watson

Stakeholder – is anyone who can influence or is influenced by the organization

SUPPORT

ONE REPORT

ONE DATA SET

Accountants

Attorneys

Other External Advisors

DASHBOARDS & OUTPUT

Other Stakeholders (e.g., Board, Investors,

Regulators)

Accountants

Attorneys

Other External Advisors

Management Teams(CEO, CFO/Finance, Operations, Sales & Marketing, IR)

Access Controls and Permissioning

THE CLOUD

One Integrated Reporting ProcessManagement Teams(CEO, CFO/Finance, Operations, Sales &

Marketing, IR)

You’re Only as Green as Your Supply Chain

Final Remarks• Chartered Accountants “WAKE UP” XBRL is changing the way you

author data. – Do not get left behind.

• XBRL is not just about financial reporting – GRI, ESG, KPI, Microfinance, Impact Reporting, TATA CSR Index ect….

• XBRL Taxonomies MUST be XBRL compliant with the XBRL Specification

• XBRL Application MUST be XBRL Compliant with the XBRL Specification

See you in Abu Dhabi, UAE • XBRL 24th International Conference• Theme: Transparency: Available, Reliable,

Comparable & Re-usable Data”• When: 20-22 March 2011• Where: The Yas Hotel & Conference Centre

Liv Apneseth Watson

. Liv has over 30 years of experience, in finding innovative ways to bring together technology, accounting and financial and business reporting.Working globally with leading market regulators, accounting associations and institutions, Ms. Watson has traveled to over 80 countries presented XBRL to a wide range of audiences from international standards bodies to Fortune 1000 companies and speaks with authority about its benefits, potential applications, and broad adoption.Liv authored one of IMA's most successful CPE courses "Accounting System Technology for the 21st Century".She has also published several articles for international publications and journals including Harvard Business Review, Strategic Finance. She also writes a monthly column of financial and business reporting trends for CPA2Biz.She is the co author and contributor author to several ‐of books including “XBRL for Dummies” and Governance, Risk, and Compliance Handbook published by Wiley.

Member of the Board of Directors, MediaTenorMember of the Board of Directors, Institute of Management Accountants (IMA)Member of IASC Foundation XBRL Advisory CouncilVice Chair of the Institute of Management Accountants XBRL Working GroupXBRL International Steering Committee MemberVice Chair of XBRL International Membership Working GroupPast Vice Chair of XBRL International, Inc.Past Chair of the XBRL US Adoption CommitteePast Vice Chair of the XBRL US JurisdictionAdvisory Board Member – University of Southern IndianaAdvisory Board Member – University of Albany, New YorkAdvisory Board Member - International Journal of Disclosure and Governance Editorial

Chief Product Officer and Founder, XBRL International. Inc.