1. Enhancing Corporate Reporting for the Capital Markets Mike Willis Founding Chairman, XBRL International Partner, PricewaterhouseCoopers mike.willis@us.pwc.com Rob Blake Second Vice-Chair, XBRL International Director - Emerging Technologies, Microsoft robblake@microsoft.com

2. Enhancing Corporate Reporting for the Capital Markets – XBRL  Exchange Reporting Objectives  What XBRL Offers  What is XBRL  Why XBRL Now  Next Steps

3. Exchange Reporting Objectives  Timely, accurate and reliable access to data  Increased visibility of reported data  Enhanced flexibility of changes in reporting  More effective production of data  More effective consumption of data  Better security  Lower costs  Increased frequency

4. Enhancing Corporate Reporting for the Capital Markets – XBRL  Exchange Reporting Objectives  What XBRL Offers  What is XBRL  Why XBRL Now  Next Steps

5. Why is Transparency Important? Greater transparency will enhance trust.  The effectiveness of the world ’ s capital markets depends on public trust, and trust depends on the timely availability of complete, relevant, and reliable information  Corporations have the obligation to provide information to their stakeholders  Stakeholders are demanding greater transparency  XBRL & Web Services enable simple desktop analytical tools to deliver greater transparency

6. XBRL – Ready for Prime Time “Some critics have suggested that XBRL is not ready for primetime. In fact, it is.” Hon. Richard H. Baker Chairman, Capital Markets Subcommittee

7. Enhancements to Reporting  Clearer communication  More cost effective  Enhanced flexibility to meet changing requirements  More accurate, timely and reliable reporting  Easier to use than current formats  Enhanced analysis capabilities  Let’s see what this means to investors and regulators……….……….

8. Financial Report – Before XBRL

9. Financial Report – After XBRL

10. Here is how this works http://www.nasdaq.com/xbrl

11. High Consumption Cost Impacts Visibility Includes all common stock on NASDAQ National Market and NYSE. Source: Thomson Financial. December 2002.

12. Visibility of Information  The first obstacle to visibility  Language  XBRL can help to increase the consumers access to information in their own language regardless of what language the report is published in.

14. How accessible are your public reports?

15. Enhancing Corporate Reporting for the Capital Markets – XBRL  Exchange Reporting Objectives  What XBRL Offers  What is XBRL  Why XBRL Now  Next Steps

16. What is XBRL? XBRL (eXtensible Business Reporting Language) is:  An information format designed for the Internet.  Freely available  Developed and maintained by over 220 supply chain participants  Based on accepted reporting standards  The convergence of:  Technology = XML-based specification  Language/dictionary = Terms by jurisdiction/industry  Consortium Participants = Supply chain members … a digital language for business reporting!

17. Scope and Role of XBRL External Financia l Reportin g Business Operations Internal Financi al Reporti ng Investme nt, Lending, Regulatio n Processes Economic Policymak ing Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators Software Vendors Management Accountants Companies Central Banks XBRL XBRL for G/L Journal Entry Reporting Today XBRL for Financial Statements

18. The Growing Family ‘99 ‘00‘01‘02 Members of XBRL International… ‘03

24. XBRL International  Non-profit organization  Manages the royalty-free intellectual property  Facilitates knowledge sharing among members and the public  Provides global framework for XBRL development Japan United States Australia Spain Ireland Germany Canada United Kingdom IASB China Sweden Denmark Switzerland Netherlands New Zealand BrazilSouth Africa Korea Colombia Argentina Singapore

25. XBRL Guiding Principles  Market driven model … win, win, win  Start simple, be inclusive, “agree to agree”  Broad supply chain participation  XBRL International members support XBRL  Members do not compete on framework  Build structure and systems to support open community and parallel taxonomy development  Liaise with other XML efforts  Neutral third party facilitator  For long term success – XBRL International

26. Defines XML and other technology standards World Wide Web Consortium (W3C) XML Framework Standards RosettaNet, OASIS, ebXML, Web Services- Interop (WS-I) XML Content StandardsXBRL, HRML, RIXML, FinML, NewsML, FpML XML Application Providers Microsoft, BEA Systems, Altova, IBM (and lots more!) Types of XML Industry Activity

27. IFRS GAAP Conceptual Framework IFRS GAAP Primary Terms IFRS GAAP FS Terms XBRL “Building Blocks” IFRS GAAP Bank Terms Bank of Germany Terms Foundational Terms Industry Terms Company Specific Terms Reporting Framework Provides a cost effective platform for IFRS/GAAP convergence

28. Enhancing Corporate Reporting for the Capital Markets – XBRL  Exchange Reporting Objectives  What XBRL Offers  What is XBRL  Why XBRL Now  Next Steps

29. Pervasive Supply Chain Problems  Production costs are high  Consumption costs are high  Leads to process delays, higher risks, and poorly informed business decisions

30. Benefits of XBRL for Producers  Tell your own story (precise & clear)  Lower cost of producing information  Accelerate adoption of reporting models  Enhanced functionality  Ease of use  Better control environment  Enhanced analytical capabilities  More timely, accurate, data for decisions

31. Benefits of XBRL for Consumers  Enhanced analytical capabilities  More timely, accurate, data for decisions  Enhanced functionality  Ease of use  Facilitates language translations  Faster access to information  Lower cost of consuming information

32. 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 Agency (1Q 2004)  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)  Morgan Stanley, Reuters, Microsoft  NASDAQ-MSFT-PricewaterhouseCoopers Pilot

33. Exchange Projects  KOSDAQ  Tokyo Stock Exchange  Luxembourg Exchange  Shenzen Exchange  New Zealand Exchange  NASDAQ

34. Market Implementation Considerations  Taxonomy development  External reporting – GAAP  External reporting – Statutory  FASB/IASB Fellowships  Tools  Assurance guidance

35. Representative XBRL-enabled Products  Shipping  SAP mySAP financials  Microsoft Business Solutions Navision  Oracle FSG  Creative Solutions (et al.)  Announced  Microsoft Office Solution Accelerator for XBRL  Hyperion Financials  PeopleSoft Enterprise Financial Management  CaseWare Financials  Hitachi GEMPlanet

36. Microsoft Office Solution Accelerator for XBRL

37. Enhancing Corporate Reporting for the Capital Markets – XBRL  Exchange Reporting Objectives  What XBRL Offers  What is XBRL  Why XBRL Now  Next Steps

38. Next Steps….  Provide local market leadership  Initiate XBRL project in your market  Evangelize benefits/thought leadership  Liaison with and/or join XBRL International consortium  Collaborate on forming provisional jurisdiction  Develop reporting objectives and framework  Assess inventory of tools  Participate in XBRL International conferences  Seattle Conference Nov. 2003 (www.xbrl.org/seattle)  New Zealand May 2004

39. Questions?

40. Enhancing Corporate Reporting for the Capital Markets Mike Willis Founding Chairman, XBRL International Partner, PricewaterhouseCoopers mike.willis@us.pwc.com Rob Blake Second Vice-Chair, XBRL International Director - Emerging Technologies, Microsoft robblake@microsoft.com