Transcript Value Measurement and Reporting Collaborative

Knowledge-based Economy: A View into the
Next Millennium
Alan ANDERSON
Senior Vice-President,
Member and Public Interests,
American Institute of Certified Public
Accountants (AICPA)
United States
Knowledge Based Economy
A View Into the Next
Millennium
Alan W. Anderson
Sr. Vice President -AICPA
Foundation for the
Future
• Must work to protect the public interest under
the current reporting models
• Must work to develop approaches and
programs to respond to demands for
assurance under “New Economic” models
Building Upon Our Foundation
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Periodic
Historical
Cost-basis
Financial
Statements
• Reliable Systems
• Method of Information
Dissemination
• Financial and Non
financial Measures
• Corporate Accountability
• Understandable
Disclosures
Why?
• The current reporting model is no longer
sufficient.
– Not timely – its after the fact news.
– Not informative enough.
– Ignores many factors of performance.
• So far, calls for change and some action.
• Now it’s time for coordinated action.
Coordination is Needed
• Many reporting efforts are ad-hoc and not
always comparable between companies.
• Current ideas are progressing, but slowly.
• Competition between ideas will hold each
other back while the market waits for a
leader.
• Need a way to create to allow ideas to work
together.
Blueprint for the Future
• A new reporting model alone is not enough:
– Is based on Internet time,
– Is reported first on the Internet, and
– Provides forward-looking information.
• The Profession must prepare for the
convergence
• Corporate Readiness and CPA Firm
Readiness
Real Time Reporting
Reliable Systems
Corporate Accountability
Understandable
Disclosures
Financial &
Non financial measures
Information Dissemination
Current Model is the Foundation
Real Time Reporting
Reliable Systems
Corporate Accountability
Financial &
Non financial measures
Project:
Trust Family – Systrust
Understandable
Disclosures
Information Dissemination
Real Time Reporting
Reliable Systems
Corporate Accountability
Project:
Financial &
Non financial
measures
Performance View
VMRC
Understandable
Disclosures
Information Dissemination
Real Time Reporting
Reliable Systems
Corporate Accountability
Financial &
Non financial measures
Project:
XBRL
Understandable
Disclosures
Information Dissemination
Real Time Reporting
Reliable Systems
Project:
Corporate Accountability
Financial &
Non financial
measures
FASB Projects
SEC Plain English Goals
VMRC
XBRL
Understandable
Disclosures
Information Dissemination
Real Time Reporting
Reliable Systems
Corporate Accountability
Project:
COSO ERM Project
New Fraud Efforts
Audit Committee Rules
Audits of Codes of Ethics
Trust Family ( Privacy)
Environmental Reporting
Understandable
Disclosures
Financial &
Non financial measures
Information Dissemination
Real Time Reporting
Reliable Systems
Corporate Accountability
Understandable
Disclosures
Financial &
Non financial measures
Information Dissemination
Current Model is the Foundation
IIN- Mission
IIN
MISSION
• Global Leadership Role in:
– Thought Leadership
– New Product Development
– Benefiting the Global Profession
• A Vehicle for:
– Effective and Efficient Collaboration
– Deployment of new products to National Institutes
Members
Why Set up IIN?
• The Business Case
– Facilitates the Rollout of New Services Globally
– Eliminates the need to negotiate:
• A New Agreement
• For Each New Service
• For Each New Country
– New Services – Member Choice
IIN - History
• Started IASN in 1999
• Initial meetings Focused on Webtrust
• Discussed IFAC interest deploying new
services to member bodies in July 2000
• IIN concept created January 2001
• Agreement in concept reached October 2001
• Formal Adoption of IIN in July 2002
VMRC
• Value Measurement and Reporting
Collaborative
• A collaborative with accounting profession
and information users to create a framework
for better reporting.
VMRC
• Goals:
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Identify best practices.
Debate existing concepts.
Test existing and new concepts.
Modify concepts, as necessary.
Develop framework to allow for comparability
between:
• Organizations.
• Within Industries
VMRC
• Create:
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Comparability
Consistency
Transparency
Principles/Criteria
VMRC Benefits
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For the accounting profession:
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Take the lead (our logical role)
Make sure the models protect the public.
The accounting profession as an innovator.
New students