Knowledge-based Economy: A View into the Next Millennium

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Knowledge-based Economy A View into the Next
Millennium
Alan ANDERSON
Senior Vice-President, Member and Public
Interests, American Institute of Certified
Public Accountants (AICPA) United States
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Knowledge Based EconomyA View Into the Next
Millennium
Alan W. Anderson Sr. Vice President -AICPA
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Foundation for the Future

• Must work to protect the public interest under
  the current reporting models
• Must work to develop approaches and programs to
  respond to demands for assurance under New
  Economic models

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Building Upon Our Foundation

• Periodic
• Historical
• Cost-basis
• Financial
• Statements

• Reliable Systems
• Method of Information Dissemination
• Financial and Non financial Measures
• Corporate Accountability
• Understandable Disclosures

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Why?

• The current reporting model is no longer
  sufficient.
• Not timely its after the fact news.
• Not informative enough.
• Ignores many factors of performance.
• So far, calls for change and some action.
• Now its time for coordinated action.

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Coordination is Needed

• Many reporting efforts are ad-hoc and not always
  comparable between companies.
• Current ideas are progressing, but slowly.
• Competition between ideas will hold each other
  back while the market waits for a leader.
• Need a way to create to allow ideas to work
  together.

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Blueprint for the Future

• A new reporting model alone is not enough
• Is based on Internet time,
• Is reported first on the Internet, and
• Provides forward-looking information.
• The Profession must prepare for the convergence
• Corporate Readiness and CPA Firm Readiness

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Real Time Reporting
Current Model is the Foundation
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Real Time Reporting
Project Trust Family Systrust
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Real Time Reporting
Project Performance View VMRC
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Real Time Reporting
Project XBRL
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Real Time Reporting
Project FASB Projects SEC Plain English
Goals VMRC XBRL
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Real Time Reporting
Project COSO ERM Project New Fraud
Efforts Audit Committee Rules Audits of Codes of
Ethics Trust Family ( Privacy) Environmental
Reporting
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Real Time Reporting
Current Model is the Foundation
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IIN- Mission
IIN MISSION

• Global Leadership Role in
• Thought Leadership
• New Product Development
• Benefiting the Global Profession
• A Vehicle for
• Effective and Efficient Collaboration
• Deployment of new products to National
  Institutes Members

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Why Set up IIN?

• The Business Case
• Facilitates the Rollout of New Services Globally
• Eliminates the need to negotiate
• A New Agreement
• For Each New Service
• For Each New Country
• New Services Member Choice

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IIN - History

• Started IASN in 1999
• Initial meetings Focused on Webtrust
• Discussed IFAC interest deploying new services to
  member bodies in July 2000
• IIN concept created January 2001
• Agreement in concept reached October 2001
• Formal Adoption of IIN in July 2002

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VMRC

• Value Measurement and Reporting Collaborative
• A collaborative with accounting profession and
  information users to create a framework for
  better reporting.

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VMRC

• Goals
• Identify best practices.
• Debate existing concepts.
• Test existing and new concepts.
• Modify concepts, as necessary.
• Develop framework to allow for comparability
  between
• Organizations.
• Within Industries

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VMRC

• Create
• Comparability
• Consistency
• Transparency
• Principles/Criteria

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VMRC Benefits

• For the accounting profession
• Take the lead (our logical role)
• Make sure the models protect the public.
• The accounting profession as an innovator.
• New students