December 6, 2006 Makoto Koizumi Koizumi.Makoto@jp.fujitsu.com INRPT07: Comprehensive Financial Data Modeling - FR, GL, and Internal Control Taxonomy - December 6, 2006 Makoto Koizumi Koizumi.Makoto@jp.fujitsu.com

Basic Concept (1/2) Corporate Financial Data Model Binding FR and GL Describe Business Process (IC) in XBRL Risks in business process Controls to mitigate the risks Binding GL and IC

Basic Concept (2/2) Internal Control(XBRL-IC) IT General Control Financial Statement (XBRL-FS) (Material Accounting Item) Ex: Total Asset (BS) Ex: Sales (PL) Ex: Profit before tax (PL) General Ledged (XBRL-GL) (Legion): (Detail accounting item) Ex: Sales ⇒ 　　Head Office : Sales Accounting (Software) Internal Control(XBRL-IC) Business Process: Sales Process 　　　Activity(1:n) ⇒Attribute(O,F,C) (1:n) 　　　　　Risk　(1:n) 　　　　　　　Control Objective　(1:1) 　　　　　　　　　Control Activity　(1:n) 　　　　　　　　　　　Key Control　(1:1) 　　　　　　　　　　　Test Effect/ Evaluation (1:n) IT General Control Business Process Management Organization Account

The Merit of Internal Control Taxonomy Comprehensive corporate data model to provide; Risk management: to identify material weakness in internal controls and supports to plan + act accordingly with materiality of deficiencies. Business Process Management: based on materiality of business process with relation to financial reports. Possible management dashboard: for top management to understand areas of risks.

Why XBRL Taxonomy? Integrity with financial information Flexibility and Extensibility Defines corporate-specific risks and controls using COSO template. Data management and workflow Facilitates information sharing regarding Internal Control’s definition or evaluation among Business Process Owner, Internal Control Department, and external auditor.

Binding FR-GL-IC (1/2) ＦＲ Instance ＦＲ Taxonomy ＧＬ Instance ＧＬ Taxonomy xbrlinfo sales Summary Related accounts 01000

（Process Account Receivable） Binding FR-GL-IC (2/2) Significant account 拠点・詳細科目 （半導体・本社） Location x Detail account Business Process （Sales） n Sub Process （Inbound） （Operations） （Process Account Receivable） 拠点・詳細科目 （半導体・本社） Location x Detail account

Risk-Control evaluation workflow Step 1 BPO Step 2 Internal Auditor Step 3 BPO Document Internal Controls On Business Process Test Internal Controls And Report Evaluate Report And Plan Remediation

Risk-Control Evaluation Data Model (1/3) Activity Related Accounts (multiple) Sub Activity Control Objective Control Objective Attribute Risk Operation Financial Reporting Compli- ance String Boolean Pre-defined section of Internal controls

Risk-Control Evaluation Data Model (2/3) Key Control Assertion E/O C V/A R/O P/D String Boolean Numeric Internal controls documentation

Risk-Control Evaluation Data Model (3/3) Test Results - Score Test Results - Narrative Remediation Plan Numeric String Test – Internal controls evaluation GAP remediation

IC Taxonomy Data Model Related Accounts Control Objectives Attribute Activity Control Objectives Risks Controls Control Activities Tests Test Results - Score Test Results - Narrative Remediation Plan Assertions Key Control Process tuple item attribute coso:Process coso:SubActivity coso:ControlObjectives coso:Risk Substitution Group coso:Activity SubActivity COSO cartridge

COSO Cartridge Internal Control Taxonomy - Company-A COSO Taxonomy 1/Activity : INBOUND 2/Activity : OPERATIONS　 3/Activity : OUTBOUND 　 4/Activity : MARKETING AND SALES 　 5/Activity : SERVICE 　 6/Activity : PROCUREMENT　 7/Activity : TECHNOLOGY DEVELOPMENT 　 8/Activity : HUMAN RESOURCES 　 9/Activity : MANAGE THE ENTERPRISE 10/Activity : MANAGE EXTERNAL RELATIONS 11/Activity : PROVIDE ADMINISTRATIVE SERVICES 　 12/Activity : MANAGE INFORMATION TECHNOLOGY 13/Activity : MANAGE RISKS 14/Activity : MANAGE LEGAL AFFAIRS 　 15/Activity : PLAN 　 16/Activity : PROCESS ACCOUNTS PAYABLE 　 17/Activity : PROCESS ACCOUNTS RECEIVABLE 　 18/Activity : PROCESS FUNDS 19/Activity : PROCESS FIXED ASSETS 　 20/Activity : ANALYZE AND RECONCILE 21/Activity : PROCESS BENEFITS AND RETIREE INFORMATION 　 22/Activity : PROCESS PAYROLL 　 23/Activity : PROCESS TAX COMPLIANCE 　 24/Activity : PROCESS PRODUCT COSTS 　 25/Activity : PROVIDE FINANCIAL AND MANAGEMENT REPORTING COSO Taxonomy Internal Control Taxonomy - Company-A Sales Cost Accounting Purchase Fixed Asset Salary R&D Taxation Investment & Loan Financial Reporting

Taxonomy Development Approach (1/2) Pre-defined section of Internal controls String Boolean Compli- ance Financial Reporting Operation Risk Control Objective Attribute Control Objective Sub Activity Related Accounts (multiple) Activity Process taxonomy COSO frame taxonomy COSO の各章ごとにフレームワーク に準拠してタクソノミとして作成 Import COSO frame taxonomy where necessary Palette activities that compose Sub-process

Taxonomy Development Approach (2/2) Internal controls documentation Numeric Boolean String P/D R/O V/A C E/O Assertion Key Control Control Data in an Instance doc. Elements in a taxonomy GAP remediation Test – Internal controls evaluation Remediation Plan Test Results - Narrative Test Results - Score

IC DTS Diagram - Overall Internal Control Terms Elements (ctrl) Relationships COSO Framework Terms Elements (coso) Inbound Terms (inbound) Terms Relationships Process Terms (proc) Company Extension Template Outbound Terms (outbound) Concepts

IC DTS Diagram - Template Internal Control Terms Elements (ctrl) Relationships COSO Framework Terms Elements (coso) Terms Relationships Process Terms (proc) Template Concepts

IC DTS Diagram – A Company Internal Control Terms Elements (ctrl) Relationships COSO Framework Terms Elements (coso) Inbound Terms (inbound) Process Terms (proc) Company Extension Outbound Terms (outbound) Concepts

Demo FR to GL Top page to Financial Report GL to IC