8 th XBRL International Conference Public Day XBRL

8 th XBRL International Conference Public Day XBRL throughout the Business Information Supply Chain: Internal Accountants & External Auditors November 4, 2003 Paul Penler, Ernst & Young Global XBRL Leader XBRL US Steering Committee - Vice Chair

Web-Enabled Business Reporting Agenda § XBRL for Business Reports: What & Why § XBRL for Externally Distributed Reports - Financial Statements and Earnings Releases § Internal Accountants § CPA Certification § Expected Benefits § Getting Started § What Should Companies do Now

XBRL: What & Why

The business information supply chain Processes Business Operations Internal Financi al Reporti ng You are here External Financia l Reportin g Trading Partners Management Accountants Economic Policymaki ng ROLE OF INTERNAL ACCOUNTANTS AND EXTERNAL AUDITORS Financial Publishers and Data Aggregators Companies Participants Investme nt, Lending, Regulatio n Auditors Software Vendors Investors Regulators Central Banks

Internal and External Exchange of Business Reporting Data Divisions Accounting | HQ Sharing Internal & External Auditors Caseware Information Bank’s Assessment of Borrowers Data Publishers M or e External Users FDIC Investors Other Regulators Lenders Data Intermediaries Easily

Why Change Business Reporting? Data Preparer Pressures: § More Data (Data Users are demanding more) § Data is more Complex (Global) § Required to Report more Often § Required to Report more Quickly § Decrease Costs Data User Pressures: § Greater Transparency & Detail § Easier to Process and Act On § Decrease Costs

The Next Generation of Reporting Paper > Electronic Reports § Examples § PDFs of F/Ss § SAP Reports § Improvements § Broader distribution § Improved time to market § Remaining Deficiencies § Digestible by experts § Difficult to identify key information Electronic Reports > Digital Data § Examples § XBRL for External F/Ss § XBRL for Internal Reporting § XBRL for External Earnings Releases/Reports § Improvements § Decreases Cycle Time § Reduced Costs to Produce § Easier to sift through information overload to isolate nuggets of key information § Remaining Problems § Integration of information across jurisdictions

Benefiting External Stakeholders, Benefits You! MISUNDERSTOOD Due to outdated, time-lagged business reports, analysts, investors, regulators and lenders don’t use all the information provided and therefore miss the key information Biz. Corp wants them to see and use. Investors and stakeholders lose confidence in Biz. Corp and choose to invest elsewhere. BURDENSOME Stakeholders of Biz. Corp can’t find specific business data about Biz. Corp. They can’t easily identify Biz. Corp financial and operational trends. This also makes it dif cult for stakeholders to compare Biz. Corp to the competition. Time and money is lost as stakeholders rekey or externally obtain data for their own use. UNDERSTOOD Due to effective, timely business reports using XBRL, stakeholders hold Biz. Corp in high regard. Regulators and lenders are less likely to misunderstand Biz. Corp. Analysts deliver more favorable analysis to the public and investors make wiser investment decisions. A positive impression is achieved. EASY TO USE Because of the simple to use format, stakeholders of Biz. Corp can easily locate and analyze specific data. Biz. Corp facilitates the identification and evaluation of trend information, making it effortless to compare business data to competitors. Information is accessed more quickly and directly and the risk of stakeholder confusion is reduced.

Developing Reports in XBRL

Methods for Getting Data into XBRL § XBRL Instance Document Creation Tools § Primary Mechanism Today § Embeded in Financial Applications § Primary Mechanism in the near future § Database and APIs § Primary Mechanism Today for Data Aggregators

Methods for Getting Data into XBRL § Embeded in Financial Applications § Primary Mechanism in the near future

XBRL Instance Document Example Financial Statement XBRL Taxonomy XBRL Creation Mapping Instance Document ed m su n Co View ed 13

XBRL Viewing Example XXX

XBRL Consumption Example Created using

Certifying XBRL Reports of Financial Information

Why is Assurance Important? To the Market: Users want to obtain confidence that the electronic version of the financial information is the same as the human readable version. Users don’t want to have to test/evaluate the XBRL data – they just want to use it. To Assurance Providers: The ability to extend assurance on the financial statements to this new electronic medium is a reasonable evolution of the auditing profession. 1 7

Attestation Standards - AT 101 Interpretation § Issued September 2003 § CPAs can provide assurance today on company’s XBRL Financial Information § Criteria: § Information in XBRL is same as Printed Financial Information § Proper Tags/Taxonomies are used § Complies with XBRL Technical Specification § Who performs audit? § Audited and Un-audited Information 18

Getting Started - Internal Accountants

XBRL: Begin the Adoption Process Today! • XBRL will transform the way companies do business • Timing of the adoption process is critical

1. EDUCATE • Learn all you can about XBRL • Share your knowledge within your company

2. EVALUATE • Analyze the business opportunity for your company • Develop your plan of action

3 a. ACT: Get Your Feet Wet • Put your quarterly earnings release and financial statements in XBRL • Distribute these reports to your stakeholders

3 b. ACT: Jump in Waist Deep • After step A, evaluate and pilot your reporting processes in XBRL • Get engaged in XBRL communities

3 c. ACT: Dive In Head First • After steps A & B, participate in demonstrations’ projects • Share lessons learned and best practices with other companies

Questions? Paul Penler, Principal, Ernst & Young XBRL US Steering Committee - Vice Chair, AICPA XBRL Implementation Task Force – Chair paul. penler@ey. com www. Web. Enabled. Business. Reporting. com

The Value of XBRL and Web Enabled Business Reporting • • • Immediate access to a lot of data Timely reports for analysis Higher quality data Receive data quickly Make decisions faster Lowers operating costs