Accountancy Profession Adding Value With XBRL Barry Melancon

Accountancy Profession Adding Value With XBRL Barry Melancon, CPA President and CEO American Institute of Certified Public Accountants

The AICPA … § The Professional organization for CPAs, with more than 350, 000 CPAs in both corporate management / finance and CPA firms § Mission: Provide CPAs with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients

The Accountancy Profession is committed to: § Core values of – § Integrity § Objectivity § Competence § “Proactively” protecting the public interest § An efficient and effective global capital market through better information

AICPA and the CPA Profession’s Commitment to XBRL § Vision and leadership § Invested in and supported XBRL § Invested in the US Taxonomies – crucial to US market adoption § Support XBRL International with people and infrastructure § Recognized from the beginning the need for interdisciplinary collaboration

The business reporting supply-chain Processes Business Operations XBRL Participants Internal Financial Reporting External Financia l Reporti ng XBRL Collaboration is KEY!!! Financial Publishers and Data Aggregators Companies Trading Partners Investment, Lending, and Regulation Management Accountants Auditors Software Vendors Investors Regulators

Why XBRL? Fundamental transformation in the way business reporting information will be exchanged, aggregated, and analyzed § § § Improve communication with investors More efficient data aggregation Improved analysis More efficient creation of business reports Better markets through better information A critical enabler to the Enhanced Business Reporting Consortium

Barcode has done for product distribution … Efficiency Savings Quality

… what XBRL is doing for business reporting

The business reporting supply-chain Who Benefits? Processes Business Operations XBRL Internal Financial Reporting External Financia l Reporti ng XBRL Financial Publishers and Data Aggregators Companies Participants Trading Partners Investment, Lending, and Regulation Management Accountants Auditors Software Vendors Investors Regulators

The business reporting supply-chain CPA’s Role in XBRL Processes Business Operations XBRL Internal Financial Reporting External Financia l Reporti ng XBRL Financial Publishers and Data Aggregators Companies Participants Trading Partners Investment, Lending, and Regulation Management Accountants Auditors Software Vendors Investors Regulators

Major AICPA commitments to Enhancing Business Reporting § Improving audit quality § Stronger internal controls and effective corporate governance § Detecting and preventing fraud § Leading the way towards improved business reporting XBRL can play a key role in each of these efforts

Better information leads to better management… better governance… better markets

Call to Action § Now is the time for CPAs to act! The tools are ready! § Participate in the SEC Voluntary Filing Program § Take XBRL to the private company sector. XBRL is not just for public company reporting.

Looking into the Crystal Ball … § § § SEC voluntary filing program takes off Companies and banks start to talk in XBRL CPAs opine on XBRL documents Better and more analysis Business sectors adopt – lending, tax, etc. EBR + XBRL = value of financial information grows § Enhancing business reporting in ways we can’t yet imagine …

The World Counts on … The Global Accounting Profession

Accountancy Profession Adding Value With XBRL Barry Melancon, CPA President and CEO American Institute of Certified Public Accountants