A full financial supply chain XBRL is Coming to Town Paul Snijders Semansys Technologies

A typical XBRL Case XBRL used for holistic solution All participants in reporting chain involved Benefits for preparers and regulators A show case implementation of XBRL Standard XBRL software utilized Implement Deliver Advance XBRL solutions XBRL technology Taxonomy development Nation wide adoption

Partnering for success The RegulatorThe Supplier Honored to speak on behalf of: The Customer How the ‘sales’ process worked The reporting organizations takes control A complete reporting chain realized XBRL implemented nation wide

The background Financial situation of local government not transparent with hidden capital and unclear financial position. Politicians in Europe demand more control over monetary policy. No clear European wide reporting standard in use.

Rules set by top EU regulator EMU reporting (European Monetary Union) to: –European Union (‘Federal Government’) –European Central Bank (‘FED’) New reporting requirement: –More detail –More frequent – quarterly –Faster – within 30 days after quarter end To be implemented as of Q1 2004

Territory: All local Government Rules apply to all local government organizations Impact on whole government and control chain Cities Semi government org´s County-States Country Control Information

Water boards take the initiative Semi government, Euro 25 Billion Budget Water management, dyke control, water quality 50 of 900 local government orgs in Holland 30 days to report External accounting rules (EMU) GL Apply rules Customer 6 months to implement

Composition of solution Reporting orgs work with Semansys to compose the solution for the complete reporting chain Complete solution for the reporting entities ´Sales´ package to regulator XBRL Introduced ´Selling´ Customer XBRL Vendor Apply rules

Model ‘sold’ to Regulator Some additional ‘convincing’ required Regulator accepts complete model ´Sales´ package to regulators on next levels Introduction to central government Compose Proposition Finalize model Agree Customer XBRL Vendor Regulator XBRL Introduced ´Selling´ Apply rules

Involvement of CPA XBRL ‘selling’ to CPA Deloitte&Touche (Market share of D&T in local gov. is over 75 % ) CPA supports Digital Reporting initiative CPA creates implementation guidelines, check lists and Assurance Method Apply rules XBRL Introduced ´Selling´ Compose Proposition Finalize model Agree Build taxonomy Training/ design Advice Finalize model Participate Customer XBRL Vendor Regulator CPA

SW vendors buy into model Local Gov. market has 3 major and 6 small GL vendors Supplier & Regulator ‘sell’ XBRL to SW vendors Software vendors integrate Semansys’ ready-to-sell Embedded Solution Apply rules XBRL Introduced ´Selling´ Compose Proposition Finalize model Agree Build taxonomy Training/ design Advice Finalize model Participate Approve taxonomy Execute Project Prepare implementation Assurance method XBRL Customer XBRL Vendor Regulator CPA SW vendors

Central Government buys in Apply rules XBRL Introduced ´Selling´ Compose Proposition Finalize model Agree Approve taxonomy Execute Project Prepare implementation Assurance method XBRL Build taxonomy Training/ design Advice Finalize model Participate Deliver Solution Direct processes Deliver Solution Implement Audit Prepare receiving Implement Deliver All local government organizations MUST report in XBRL as from Ministry of Internal affairs

All participants involved General Ledger General Ledger Internal financial reporting Internal financial reporting External financial reporting External financial reporting Receivers Reporting Org’s Federal Control Orgs Federal Control Orgs EU ECB EU ECB Auditors Controllers Admin Regulators Software Vendors Processes Participants General Ledger General Ledger Internal financial reporting Internal financial reporting External financial reporting External financial reporting Receivers Reporting Orgs Federal Control Orgs Federal Control Orgs Auditors Controllers Admin Regulators Software Vendors

The supply chain XBRL Vendor XBRL Expertise XBRL Module Central Gov’ Regulator Customer Auditor XBRL Taxonomy ‘XBRL a Must’ GL – SW Vendors

Conclusions Closed loop solution realized Proven integral approach No threshold for direct utilization Standard software available Low cost implementation Direct advantages for preparers and regulator

The truth behind the figures Paul Snijders