This presentations looks risks associated with supplemental reporting including budgeting/forecasting and metrics

1. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
Reporting – Other Reporting Risks
Author: Paul Young, CGA
Proven Practice Advisor
Business Analytics
IBM Canada Inc.

2. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems

3. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
3
Agenda
• What is Supplemental Reporting
• What are the risks to reporting supplemental information
• What options are available to reduce the risks to reporting supplemental
information

4. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
What is Supplemental Reporting
• Budgeting and Forecasting
• Operational Metrics/Stats

5. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
What is the risk?
“Similar to non-GAAP financial reporting, key
operating metrics and forecasts may also be
distorted via bias — for example, painting a
potentially misleading picture — error, or fraud, all of
which undermine the credibility of the reporting,”
Bricker said. “Therefore, it is important that
companies proactively and thoughtfully address
risks to their reporting.”
Wesley Bricker, Chief Accountant – SEC – May 5, 2017 – CFO.com

6. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
How can mitigate reporting risk?
• Reporting sources are validated and confirmed
• One version of the truth
• Metrics
• Budget/Forecasting
• Macro/Micro indicators

7. © 2009 IBM Corporation
IBM Confidential – Internal Use Only
Watson - https://www.ibm.com/analytics/watson-analytics/in-
en/by-industry/retail
Reporting –
https://www.ibm.com/ca-en/marketplace/finance-reporting-and-
process-automation
Consolidation Solutions:
https://www.ibm.com/ca-en/marketplace/auditable-financial-
consolidation
Analytics - http://www-05.ibm.com/uk/forecasting-and-
budgeting/2017_Q1_Rolling_Forecast_Seminar_slide_deck
3-1.pdf or
https://www.ibm.com/analytics/us/en/business/financial-
performance-management/
Opportunities for solutions