XBRL in Use: Tools, Technologies and Solutions Walter Hamscher (walter@hamscher.com) Chair, International Steering Committee Consultant to PricewaterhouseCoopers 30 min.

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today

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

Reporting challenges Timeliness and quality of source data and estimates Inconsistent terminology Changing collection requirements Implementation cost & resistance to change Variant of Pareto’s 80-20 postulate: 80% of effort in reporting goes into dealing with the 20% of the data that is not already well-structured and organized in a stable, widely used format

Solutions offered by a standard language Timeliness and quality of source data and estimates Inconsistent terminology Changing collection requirements Implementation cost & resistance to change Minimize data re-keying and copy-and-paste using a universal format Single definitions shared by all software applications Software able to use new and changing data definitions immediately Open, royalty free, independent standard and consortium

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today

<jg:opc contextRef="rg00jpy">-3181000000.</jg:opc> <jg:opc contextRef="rg00usd">-4613000.</jg:opc> <jg:opc contextRef="rg01jpy">-3583000000.</jg:opc> <jg:opc contextRef="rg01usd">-5196000.</jg:opc> <jg:opc.acq contextRef="rg00jpy">0.</jg:opc.acq> <jg:opc.acq contextRef="rg00usd">0.</jg:opc.acq> <jg:opf contextRef="ins00usd">228000.</jg:opf> <jg:opf contextRef="ins00jpy">84000.</jg:opf> <jg:opf contextRef="ins00jpy">73000.</jg:opf> ? What we need are: FIRST, Common Definitions – that is what a taxonomy is. Mainly, investors, regulators and standard setters provide it. SECOND, Electronic Documents – that is what an XBRL instance document is. Mainly, companies produce it. THIRD, Ability to Extend the Definitions – XBRL provides that in a way that other technology standards do not.

? <jg:opc contextRef="rg00jpy">-3181000000.</jg:opc> <jg:opc contextRef="rg00usd">-4613000.</jg:opc> <jg:opc contextRef="rg01jpy">-3583000000.</jg:opc> <jg:opc contextRef="rg01usd">-5196000.</jg:opc> <jg:opc.acq contextRef="rg00jpy">0.</jg:opc.acq> <jg:opc.acq contextRef="rg00usd">0.</jg:opc.acq> <jg:opf contextRef="ins00usd">228000.</jg:opf> <jg:opf contextRef="ins00jpy">84000.</jg:opf> <jg:opf contextRef="ins00jpy">73000.</jg:opf> ? For a CIO – what is the cost of not tightening up corporate disclosure: Sarbanes-Oxley says: Go to jail – go directly to jail. When will it be universal? Peroratorio – So, if you’re wondering what to do next, how to think about XBRL, You might think that the next step is Go talk to your accounting firm Go talk to your investment manager Go talk to your investment information supplier Go talk to your government Or join the XBRL consortium And I wouldn’t want to discourage you from that, but The FIRST step is to ask yourself a question: What does investment information in its current form cost me today – directly – indirectly What does it cost me to provide the market with information in a clumsy form Is it free, are you getting what you paid for, and is it satisfactory And envision what you could do if the information you want Arrived on your desktop in the way that you asked for it In a way that can be integrated and compared with information from any other source. I believe that once you look at that, you will know exactly what to do.

How does XBRL differ from XML? XBRL adds to XML: Multi dimensional financial data representations Financial reporting vocabularies (taxonomies) Aliases and other definition relationships Mathematical relationships between concepts Flexibility about how to present items to users Structure for authoritative policies and guidance Reporting apps need these even when using XML Definitions AKA Liquid Assets References GAAP I.2.(a) CoA 1100 Presentation Cash & Cash Equivalents XBRL Item “200” Calculations Cash = Currency + Deposits Formulas Cash ≥ 0 Notes: Contexts US $ FY2003 Budgeted

New Results from Collaboration by XBRL International Members XBRL 2.1 Candidate Recommendation 2 XBRL Financial Reporting Taxonomy Architecture 1.0 Public Working Draft XBRL GL 1.1 Public Working Draft US GAAP Taxonomy Framework Update Coming in a matter of days Vendor Compliant Development Tools XBRL 2.1-Compliant IFRS Taxonomy XBRL 2.1 Primer

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today Business Operations Internal Financial Reporting External Financial Reporting Investment, Lending, and Regulation

What XML Offers Form Co. Specific Supp Info Forms Data Submits Receives Division Level Extract Merge Group Level Department Level Participants Processes Maintain Definitions Collect Distributes Division Detail Send Requests Prepare Report Query Find Sources Co. Specific

Regulators, Partners, Outsourcers What XBRL Offers . Regulators, Partners, Outsourcers Analyze Net Data Department Level Division Level Group Level Participants Form Merge Form Submits Submits Send Collect Data Data Data Receives Data Division Detail Prepare Extract Find Maintain Report Requests Sources Definitions Supp Info Query Receives Distributes Forms Forms Forms Processes Co. Co. Distributes . Specific Specific Definitions Definitions Std. Std. Net Data Data Vocabulary Vocabulary

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today Business Operations Internal Financial Reporting External Financial Reporting Investment, Lending, and Regulation

Well, paper financial statements are pretty much like that. There’s an awful lot of detail there

Consolidated Profit and Loss Account for the year ended June 30, 2003 Blah blah Blah blah Blah blah blah Profit 925 448 Earnings per share 3.6 11.0 But if there isn’t agreement on what each of those details mean, naturally this is what you’ll get.

An XBRL reporting system will disseminate relevant information in a flexible, usable format to markets on an almost real-time basis. * * * Too much damage has occurred to the U.S. economy and the capital markets because of the lack of timely and transparent financial information. I have confidence that XBRL will eliminate those deficiencies. The Hon. Richard H. Baker Chairman, House Capital Markets Subcommittee

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today Business Operations Internal Financial Reporting External Financial Reporting Investment, Lending, and Regulation

Credit risk assessment process improvements Average time to update financial information—11 days <10% 90% + time spent on “spreading” and other mechanics Value-added Analysis and Decision-making? Mechanics With XBRL? More Time for Analysis => Better Analysis => Less Risk Or Mechanics Analysis Mechanics Analysis Mechanics Analysis Mechanics Analysis Process more loans in the same amount of time

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today Business Operations Internal Financial Reporting External Financial Reporting Investment, Lending, and Regulation

XBRL in Regulatory Reporting Shared Data Deposit Insurance --- Statistics --- -- Comptroller -- Software Can be any vendor product, or provided by regulator Software Vendors with interoperable tools Schedule/Form XBRL Taxonomy Item Types Labels, Definitions, etc. Instructions XBRL Rule Base XBRL Versioning Validations, Quality tests Value-added Calculations Taxonomy changes Data conversion rules XBRL Taxonomy Software Create Update Debug Reporting Institution Software Import Schedule Enter Data Validate Data Send Data Result: Adaptability Efficiency Faster cycle times Meta Data Quarterly Report XBRL Document Performance Data Reporting Institution Regulator

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today

Representative XBRL-enabled financial software products Shipping SAP mySAP financials Microsoft Business Solutions Oracle FSG Creative Solutions (et al.) Announced Microsoft Office 2003 Add-in Hyperion Financials PeopleSoft Enterprise Fin. Mgt. Custom CaseWare Financials Hitachi GEMPlanet

XBRL Software Survey 3Q 2003 Findings 2/3 of the 21 accounting software vendors surveyed are committed to XBRL products Early adopter vendors are those with larger customers Export before import Understanding correlates with the decision to XBRL-enable Accounting software vendors are anticipating customer demand and have either XBRL enabled, or have decided to enable, one or more products. Accounting software vendors oriented towards large enterprise companies are further along with XBRL. Focus is on outputting in XBRL, not being able to import XBRL. Of the 7 vendors that have not yet decided to XBRL enable, only two say they have a good understanding of XBRL

Live applications APRA (2001) EDGAR Online (2001) DATEV/Bundesbank (3Q 2002) Wacoal (4Q 2002) – Internal Reporting OneSource (1Q 2003) Tokyo Stock Exchange (1Q 2003) Sumitomo Mitsui Banking Corp. (1Q 2003) Danish Commerce & Companies (2Q 2003) Dutch Water Authority (3Q 2003) – Internal Reporting UK Inland Revenue (4Q 2003) KOSDAQ – Korea (4Q 2003) National Tax Agency of Japan (1Q 2004) US FDIC (3Q 2004) Australian Tax Office (4Q 2004) Morgan Stanley, Reuters, Microsoft Financial Statements NASDAQ-MSFT-PricewaterhouseCoopers Pilot

XBRL Today Business reporting supply-chain inefficiency XBRL for supply-chain collaboration XBRL-enabled tools & technologies Internal reporting and compliance Reporting to capital markets Credit assessment Regulatory reporting Worldwide vendor and user momentum What you will learn today

What you will learn today What advantages does XBRL offer your own business information supply chains? Assurance Equity markets Regulatory environments How will XBRL impact you tomorrow? Evolution of XBRL and the Internet Enhanced business reporting and XBRL How can you gain the benefits of XBRL? Software shoot-out Walking tours of vendor exhibits

XBRL is brought to you today by…

XBRL in Use: Tools, Technologies and Solutions Walter Hamscher (walter@hamscher.com) Chair, International Steering Committee Consultant to PricewaterhouseCoopers 30 min.