Enhanced Business Reporting and XBRL

Bob Laux Director, Technical Accounting and Reporting Microsoft Corporation

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What is Enhanced Business Reporting?

EBR is the right mix of easily accessible, high-quality information  Add critical information not presently disclosed, i.e.,

enhancement

 Scale back stale or redundant disclosures, i.e.,

simplification Enhancement

 Voluntary guidelines for industry-specific value drivers and key performance indicators (KPIs)  A framework for disclosure of non-financial information, e.g., opportunities, risks, strategies and plans

Simplification

  Stronger focus on quality of information, not quantity Prepare and disseminate information using efficient and effective business processes

What is the EBR Consortium?

 An independent, market-driven, international collaboration of investors, creditors, analysts, management, directors, regulatory agencies, standards setters, members of academia, and all other stakeholders

The EBR Consortium will provide an opportunity for the users and providers of market capital to…

 Demonstrate a commitment to hold themselves responsible and accountable for the quality of the information provided to the capital markets  Develop and present constructive proposals as a viable alternative to further regulation

Why do we need to "enhance" business reporting?

 Everyone needs better information…  Management needs better information to optimize allocation of resources –primarily capital, but also labor  Boards of directors need better information to provide the level of oversight that shareholders demand  Investors need better information to more efficiently and effectively allocate and price capital  Regulators need better information to ensure that the capital markets are functioning as efficiently and effectively as possible  The net result is a higher return on capital for society as a whole

Forming the EBR Consortium

    10-12 Strategic partners 20-30 Charter members Luminaries Observers

Current EBR Strategic Partners

         AICPA Business Roundtable Confederation of British Industry International Chamber of Commerce NACD Nasdaq National Investor Relations Institute Open Compliance & Ethics Group XBRL International

How do we make information more useful?

 Enhanced Business Reporting provides a structure for enhanced business information  XBRL puts information in the hands of consumers at lower costs (both production and consumption)  XBRL provides an Internet-centric platform for EBR that delivers a powerful Return On Investment

How do we make information more useful?

   Enhanced Business Reporting is the what XBRL is the how The how enables better discussion about the what

Leadership