XBRL Action Needed

1
XBRL?Action Needed!
Mark de Haas Vice President Corporate Accounting
2
Introduction

• 1995-2003 KPMG
• Since early 2000 involved in XBRL initiatives
• Founding member XBRL-Nederland
• Business opportunities for digital reporting
• Auteur of two book and many articles
• 2003-.. Wolters Kluwer nv Vice President
  Corporate Accounting
• Responsible for internal financial reporting
• Accounting (IFRS)

3
The CFOs changing agenda

• Global capital markets
• Constant changes in Accounting (IFRS)
• Accounting scandals drive focus on transparency
  and new compliance rules (Sarbanes-Oxley,
  Corporate Governance, Tabaksblat)
• Market demands timely information
• Transition to Digital Delivery (internet)

4
Quote

• The annual report of the 21st century will not
  be annual and it will not be a report
• Alan Benjamin, 1998

The 21st Century Annual Report, published by
The Institute of Chartered Accountants in England
and Wales, November 1998
5
Digital reporting will be the standard

• Reduces the process time and cost in preparing,
  receiving and processing aggregated reporting
  information communicated by corporate or publicly
  available data descriptions
• XML will cross the barriers between different
  systems speaking their own language
• Benefits can only be achieved if an open standard
  is used XBRL

XBRL isperhaps the most revolutionary change in
financial reporting since the first general
ledger. Accounting Today, September 2000
6
Benefits of XBRL

• A report prepared in XBRL using a public taxonomy
  has the following benefits
• Accounting disclosures are
• More comparable Among industries
• More understandable Currency, language
  translations
• Accounting information is
• More relevant Timely
• More accessible Internet enabled usable
• More reliable Reduce market noise

7
So, when will we start using XBRL?

• Two factors will determine the success or failure
  of XBRL
• Four components need to fit seamlessly together
• Time

8
Four pieces of the puzzle Digital Reporting
model
IFRS
2
US GAAP
Taxonomy Framework
Monthly MIS
Data Base
1
3
Data Base
Company Application
Reporting Portal
Data Collection
Data Base
4
XBRL Instance(s)
9
Four pieces of a puzzleHow complicated this can
be?

• A regulator/user
• A request translated into a taxonomy
• XBRL enabled software
• Companies that prepare XBRL instances

10
Technology's adoption curve

• Early adopters
• Are interested in applications and technologies
  as such
• Are ready to buy whenever they find a strong
  match between application needs a technological
  solution
• Are the key to opening up any high-tech market
  segment

Source Geoffrey Moore,Crossing the Chasm
11
The early majority is interested in XBRL, but

• Know that many new innovations end up as passing
  fads
• Are driven by a strong sense of practicality
  (show me!)
• Tend to take a wait see attitude
• Want to see well-established references

Time is a great teacher, but unfortunately it
kills all its pupils Hector Berlioz
12
Where do we stand today?

• Regulators that use real XBRL for information
  exchange
• Regulators or public-entities creating and
  maintaining real and useful XBRL taxonomies
• Software with real XBRL capability
• Companies reporting XBRL

• Action needed
• Action needed
• Getting there, action needed
• Will do

13
Questions ?

• Reference
• http//www.de-haas.nl
• http//www.xbrl-nederland.nl