Value proposition for use of xbrl in the business reporting supply chain liv watson
Value Proposition for use of XBRLIn the Business Reporting Supply Chain (BRSC)Presented by:Liv Apneseth WatsonChief Product Officer & Founding MemberXBRL International, Inc. www.xbrl.org
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.
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 conceptsPwC 4
What is an XBRL Taxonomy– More Than Just Definitions Presentation Presentation Presentation Presentation Presentation Standardization Presentation 现金与现金等价物 Деньгиenїх etэквиваленты Comptant Comptant Kas Geldmiddelen 現金及び現金等価物 Cash та Geld nahe Mittel Geld &и ихEquivalents Гроші & Cashеквіваленти Equivalents Label References GAAP I.2.(a) cashCashEquivalentsAndS Instructions hortTermInvestments Ad Hoc disclosures XBRL Item <200> Calculation Cash = Currency + Formulas Deposits Cash ≥ 0 Contexts US $ FY2004 Validation Budgeted
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)• This paper shows how XBRL provides a common • Eric Cohen communication platform • Margaret Long that can create efficiency, accuracy, and costs • Rick Plotka savings at each stage in • Dan Roberts the business reporting • Elisabeth Scherr supply chain if used • Liv Watson strategically. (in alphabetic order)• The audience of this paper is creators and users of business reporting data.
The Business Reporting Supply Chain Process and Participant Stakeholders Processes XBRL < IIRC, CSR & ESG Data > XBRL Financial Statements Suppliers & Subsidiaries GL, the Journal Taxonomy and and Non-Financial Non-Financial XBRL Data Integrated Reporting Internal External Investment, Business Economic Business Business Lending, Operations Policymaking Reporting Reporting Regulation < Financial Data >Participant Stakeholders Financial NGOs, Community Groups, Publishers Central Companies Investors and Data Banks Associations Aggregators Trading Management Auditors Regulators Partners Accountants Software Vendors Source: XBRL International, Inc.
INTEGRATED Investment Stakeholder – is REPORTING Community anyone who can STAKEHOLDER Infomediaries influence or is INTEGRATED REPORTING STAKEHOLDERS ECOSYSTEM ECOSYSTEM influenced by the organization EXTERNAL STAKEHOLDERS Subsidiaries Investment CommunityInstitutional InvestorsRetail Investors InfomediariesMediaSocial Media OverseersData AggregatorsFinancial Publishers INTERNAL Overseers STAKEHOLDERSRegulatorsLawmakersPolicy MakersCentral BanksNGOsCommunity GroupsAssociations Service ProvidersExternal AuditorsExternal LegalProfessional ServicesTechnology VendorsTrading Partners Service Providers INTERNAL STAKEHOLDERSManagementEmployees/StaffBoard/Governance Source: Brad Monterio & Liv Watson
Management Teams DASHBOARDS & OUTPUT (CEO, CFO/Finance, One Integrated Reporting Process Management Teams Operations, Sales & Marketing, IR) (CEO, CFO/Finance, Operations, Sales & Marketing, IR) ONE REPORTAccountants Accountants Attorneys THE CLOUDAttorneys SUPPORT Other External Advisors Other External Advisors ONE DATA SET Access Controls and Permissioning Other Stakeholders (e.g., Board, Investors, Regulators)
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 Chief Product Officer and Founder, XBRL International. Inc.. Member of the Board of Directors, MediaTenor Liv has over 30 years of experience, in finding Member of the Board of Directors, Institute of innovative ways to bring together technology, Management Accountants (IMA) accounting and financial and business reporting. Member of IASC Foundation XBRL Advisory Council Working globally with leading market regulators, Vice Chair of the Institute of Management Accountants accounting associations and institutions, Ms. Watson XBRL Working Group has traveled to over 80 countries presented XBRL to a XBRL International Steering Committee Member wide range of audiences from international standards bodies to Fortune 1000 companies and speaks with Vice Chair of XBRL International Membership Working authority about its benefits, potential applications, and Group broad adoption. Past Vice Chair of XBRL International, Inc. Liv authored one of IMAs most successful CPE courses Past Chair of the XBRL US Adoption Committee "Accounting System Technology for the 21st Century". Past Vice Chair of the XBRL US Jurisdiction She has also published several articles for international Advisory Board Member – University of Southern Indiana publications and journals including Harvard Business Advisory Board Member – University of Albany, New York Review, Strategic Finance. She also writes a monthly Advisory Board Member - International Journal of column of financial and business reporting trends for Disclosure and Governance Editorial 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.