October 25, 2000 NIVRA de Accountantsdag 1 E-BUSINESS JAMES M. SYLPH Technical Director - IFAC

October 25, 2000 NIVRA de Accountantsdag 2 DEFINITION of E-BUSINESS Any business that uses e-commerce and related technologies and processes to develop, expand or enhance its business activities.

October 25, 2000 NIVRA de Accountantsdag 3 And the Internet means… Small companies can act like large companies Large companies can act like small companies Every company is a “dot com” company, whether you want to be or not Fundamental change of infrastructure Big opportunity, but also a big threat Change

October 25, 2000 NIVRA de Accountantsdag 4 SUCCESSFUL E-BUSINESS NOT just posting information on web site find ways to –attract customers –drive down costs –deliver services

October 25, 2000 NIVRA de Accountantsdag 5 KEY ELEMENTS IN THE VALUE STREAM Investment in software Intangibles Intellectual capital TRADITIONAL ACCOUNTING DOES NOT MEET THE EBUSINESS NEEDS

October 25, 2000 NIVRA de Accountantsdag 6 THE FINANCE FUNCTION Manage value creation Get the capabilities in place Consistency Consider TVC ® Consider XBRL

October 25, 2000 NIVRA de Accountantsdag 8 Why XBRL ?  Enable business reporting that leverages the Internet & XML  Effective access and analysis of business reports  Improve corporate communications with stakeholders

October 25, 2000 NIVRA de Accountantsdag 9 XBRL and the Emergence of ‘e- Standards’ HTML is the standard that enabled the web’s first ‘Big Step’ XML is the web’s next ‘Big Step’ –Over 200 XML-Based Specifications and Protocols exist, including— RosettaNet – computer company supply chain and trading webs OBI - Open Buying on the Internet - retail e-commerce FpML - Financial Products (Derivatives, Swaps, FX) ACORD XML - Insurance industry information exchange standards derived from EDI. –UN/CEFAC = EBXML XBRL is uniquely focused on financial reporting

XBRL Multiple Uses Regulatory Filings Financial Statements For Financial Performance Tax Filings Credit Reporting XBRL Creditors Other Parties Investors Systems Other Sources of Information XBRL Regulatory Filings Financial Statements For Financial Performance Tax Filings Credit Reporting Regulatory Filings Financial Statements For Financial Performance Tax Filings Credit Reporting Regulatory Filings Financial Statements For Financial Performance Tax Filings Credit Reporting

October 25, 2000 NIVRA de Accountantsdag 11 USEFUL REFERENCES Journal of Accountancy article, “XBRL – How to Turn Data Into Strategy” –CFO Magazines article, “How the Web was Won” about Online IR –Scientific American article, “XML and the Second-Generation Web” –FASB’s Electronic Distribution of Business Reporting Information –IASC’s Business Reporting on the Internet –XBRL Website

October 25, 2000 NIVRA de Accountantsdag 12 Example: XBRL Germany – September 2000  Deutche Bundesbank  Dresdner Bank  Deutche Bank  HypoVereinsbank  Postbank  Rating Services AG  Hermes Kreditversicherungs AG  Haarman, Hemmelrath und Partner  Bundesverband deutscher Banken  Deutsche Verkehrsbank  Savings & Loan Information Center  Syseca Management Cons.

October 25, 2000 NIVRA de Accountantsdag 13 AUDITORS OF FINANCIAL STATEMENTS Web sites and internal auditors Knowledge of the business Documentation Understanding controls Confirmations and inventories Prospectus on the web Annual report

October 25, 2000 NIVRA de Accountantsdag 14 AUDITORS - NEW SERVICES Webtrust ® and Systrust ® On line shopping carts Penetration tests Vulnerability tests Contracts-PKIs and CAs ERP systems CRM systems