SBR-Program Approach & Progress 2010

What does SBR means to us? SBR means to us standardization in the proces of financial reporting:  Business to government  Currently: Tax office, Chamber of Commerce and Central Bureau of Statistics  Expected: innovation-policy, government procurement, taxi-revenues,  Business to business  Currently: Credit reporting to banks  Future: insurance  Government to Government:  Expected: reporting of schools to the Ministry of Education In short: create an administrative infrastructure which allows for easier filing processes, to less costs, thus lowering the overall level of transaction costs 2 Standard Business Reporting Programme A Netherlands government initiative

The basic process of SBR Essentially the basic process of SBR is Standardization of:  Data:  XBRL-Taxonomy  Processes:  Standardized analysis of all filing processes through which agencies request information from businesses, using BPMN as the standard  Technology end technics:  A standardized and generic transaction port for system2system communication  Intelligence to recognize messages and understand the processes of which they are part 3Standard Business Reporting Programme A Netherlands governement intitiative

SBR-NL History  From 2000 onwards: government priority to reduce administrative burden for business:  The “fuss” of complying to government regulations  2002/03: recognition of potential of XBRL:  a means of reducing the cost of financial reporting to government  2005/06/07: start of the NTP: Netherlands Taxonomy Project  Development of initial thinking with regard to Taxonomy  Development of design for a Generic Intelligent Infrastructure (Receiving messages for all partcipating government agencies)  2008/09: development and implementation of major tools:  NL-Taxonomy 2010  Intelligent transaction port (Digipoort)  2009/10: move from development to implementation  Implementation plan + roadmap approved december Standard Business Reporting Programme A Netherlands government initiative

SBR-NL Approach  Government and business in the 21 st century: a complex relationship:  The “business of government” is a complex thing  The “business of business” is a complex thing  The “business” of government and business interacting with each other is even more complex  Reducing this complexity requires standardization of filing processes and data:  Between business and government  Within government between various agencies  Within the business community  Creating Standards requires co-operation in a competitive market:  Good standards are merit goods that create value for all users  When users do not see the added value they will not comply  The SBR NL Program is a co-operation between Government and Business: 5Standard Business Reporting Programme A Netherlands government initiative

SBR-NL Program Challenges  The SBR NL Program task is seeking co-operation:  in a competitive market  on issues that have deep impact for business- and government processes  are not understood by many  Frankly:…. We do not always find this easy  The challenges for SBR-NL Program:  Understanding and prioritizing the issues to be resolved for implementation  Finding the best solution to the various issues  Seeking the buy-in of organizations involved  Getting the market to actually start using XBRL 6Standard Business Reporting Programme A Netherlands government initiative

SBR-NL in action  The SBR Platform:  Representatives of business community and government  Hands-on experience (“feet in the mud”)  Constantly generating issues that may block the uptake of SBR  The SBR Expertgroups:  Expertgroups for Data/Taxonomy, Processes, Marketing&Communication  Bringing together all available expertise in the Netherlands (and from outside, if needed)  Finding solution for the issues  The SBR Council:  High level representatives of business and government  Strategic decision making  The SBR Programteam (Within Logius):  Supporting the various groups with expertise  Pursueing the actions, stated in the Implementation plan  Seeking the policy-guidance from the Ministry of Economic Affairs, Agriculture & Innovation 7Standard Business Reporting Programme A Netherlands government initiative

Where are we now?  We are fully operational since start 2010:  The NL-Taxonomy 2010 was issued december 2009 and has been available since  The NL-Taxonomy 2011 was issued last Friday  The Intelligent Transaction Port (Digipoort) has been operational since end 2009  We gradually upgrade our processes  Early 2010 we defined the current state of the information requesting processen as a level-0  This allowed for instances to be sent in under close watch  We have upgraded to level -1, which allows for full automatic exchange of instances in high volumes  In 2011 we will reach level-2 in which we have all management, maintenance & support in places for these processes to continue to run smoothly  Roadmap:  We defined thresholds for numbers of messages in various flows (filing processes for tax, chamber of commerce, statistics)  We are lagging behind about three months for 4 out of 5 flows  For VAT-messages we will probably reach the stated threshold (20.000) 8Standard Business Reporting Programme A Netherlands government initiative

What’s up for next year?  We will finish the implementation-phase of our program:  Receive the amount of instances stated in the roadmap (appr )  Stabilizing our processes and procedures  Improving the taxonomy  Migrate the current SBR Organisation:  From a temporary program organisation into the Logius-organisation  Secure the long-term business case and budget  Gradually replace current temporary staff (consultants) for permanent (cheaper) staff  Broadening of scope:  Additional government agencies and their filing processes will be added  Current agencies wil increase the number of filing processes  At some point: the usage of XBRL will be mandatory for filing; we need to be able to support that. 9Standard Business Reporting Programme A Netherlands government initiative

What’s up for later?  In the late 19th century the provision of electricity to homes and business was an issue; now we simply tap it from the wall-plug  Now SBR is a difficult thing to master: in ten years time hardly anybody will notice that his software is XBRL-enabled; filing reports is a non-issue by then 10Standard Business Reporting Programme A Netherlands government initiative

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