Automating and Simplifying your External Reporting by Integrating - - PDF document

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Automating and Simplifying your External Reporting by Integrating XBRL

Ken Pavell & Steve Sheekey

Thursday, June 20, 2013

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Automating & Simplifying External Reporting

General Information

• Share the webinar
• Ask a question
• Votes (polling questions)
• Rate (before you leave)
• Attachments (you can download today’s materials)

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Earning CPE Credit

• To receive 1.0 CPE credit for this Webinar, participants must:

– Attend the Webinar for at least 50 minutes on individual computers (one person per computer) – Answer polling questions asked throughout the Webinar

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Meet our Presenters

Ken Pavell National Director

(630) 452-3659 ken.pavell@experis.com

Steve Sheekey Director

(863) 412-7296 Steven.sheekey@experis.com

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Agenda

• The Financial Close Process & Performance Management
• Integrating XBRL to the Financial Close Process
• Disclosure Management Demo
• Questions

The Financial Close Process

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The Financial Close Process

Ledger & Sub Ledgers & Other Data Consolidations Internal Reporting External Reporting Filings

• Close Sub Ledgers into GL
• Reconcile accounts
• Gather additional Data Sets to support close
• Consolidate reconcile data

based on regulations

• Intercompany Eliminations
• Multicurrency capabilities

(translations & reevaluations)

• Compliant with principals and reporting standards
• Produce financial statements and “book” capability
• Render and Deliver reporting for performance analysis
• Automate external reporting disclosures
• Automate and Deliver XBRL

& Other Statutory filings

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Performance Management

• Link strategic goals to
• perational decisions
• Integrates all management

processes

• Deliver consistent, reliable

insights to drive action

• Lower costs and reduces

system complexity

• Single version of the truth

Insight Performance Action

Set Goals Plan Monitor Analyze Report Align

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Core components of BPM

BP&F

Financial Consolidations & Close Financial, Statutory, Management Reporting & Disclosure

• Short-term financial budgeting –

set detailed financial targets

• Longer-term planning – set high-level targets

and key strategic initiatives

• Consolidate, reconcile data based on

standards and regulations

• Automatic intercompany eliminations
• Multicurrency capabilities including

translation and reevaluations

• Compliant with principles and reporting standards,

and support reporting technologies

• Produce financial statements and “book” capability
• Render and Delivery options to fit the needs
• f all consumers of the data

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Current view of BPM & BI

• Providing accuracy and transparency to core areas such as:

– Consolidation & Close – Financial, Statutory & Management Reporting – Budgeting, Planning & Forecasting

• Expanded Scope => Looking to deliver a better understanding of:

– Drivers of profitability – Profitability modeling and optimization (PM&O) – Strategy management – XBRL/IFRS standards

• Nearly 35 percent of large enterprises and as much as 65 percent of midsize

businesses are using spreadsheets or legacy applications

• Increasing looking at strategy management and profitability modeling

Source: Gartner Magic Quadrant Report on Corporate Performance Management Suites - March 2012

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Polling Question

What BPM solution have you deployed?

A. Oracle/Hyperion B. SAP/Business Objects/OutlookSoft C. IBM/Cognos/TM1 D. None E. Other

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Organizations that have implemented Performance Management more broadly are nearly four times more likely to be among the most competitive

• rganizations in their industry

Source: IDC Financial Performance & Strategy Management

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The Financial Close Process

Ledger & Sub Ledgers & Other Data Consolidations Internal Reporting External Reporting Filings

• Close Sub Ledgers into GL
• Reconcile accounts
• Gather additional Data Sets to support close
• Consolidate reconcile data

based on regulations

• Intercompany Eliminations
• Multicurrency capabilities

(translations & reevaluations)

• Compliant with principals and reporting standards
• Produce financial statements and “book” capability
• Render and Deliver reporting for performance analysis
• Automate external reporting disclosures
• Automate and Deliver

XBRL & Other Statutory filings

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The Challenge of Regulatory Disclosures: Lack of Automation, Visibility and Control

• Collecting disparate data is time-consuming
• Disparate data sources across system

landscapes

• Regulatory information contained in

spreadsheets

• Manual cut-and-paste for narrative content
• Manipulating data manually increases cost
• E-mail workflow reduces visibility into status
• Multiple document instances and versions
• Approvals are cumbersome to manage and

audit

• Decentralized disclosures increase risk
• Manual cut-and-paste into different formats
• XBRL filing separate from statement publication
• Last-minute adjustments may cause

inconsistencies

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Accelerating the Last Mile of Finance Reduces Costs

“

Tools that can help coordinate the financial statement, regulatory reporting and investor report production activities in one central product that can provide a collaborative environment for all contributing parties can reduce process costs by up to 30%.

Gartner Research Financial Statement Production Solutions Increase Market Penetration John E. Van Decker November 2010

”

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What Is XBRL? eXtensible Business Reporting Language

• Global demand for consistency in disclosures
• Revolutionizes the reporting and disclosure of financial and business

information

• Standardizes the content of financial information for consistency in disclosures
• Makes financial information easier to search, compare, and analyze
• XBRL taxonomies identify information
• A set of agreed-upon, computer-readable tags of information – equivalent to

“bar-coding”

• Defines individual data items in business reports and how they interrelate
• Taxonomies can be extended for specific industries or by individual

corporations

• Compliance is mandatory by regulatory agencies, stock exchanges, and central banks
• U.S. Securities and Exchange Commission (SEC), UK Tax Authority, etc.
• Projects underway on all continents, in over 30 countries
• Taxonomies are defined by jurisdiction

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Common XBRL Practices

• Manual management and creation of critical documents
• Process of Gathering and Managing content and commentary is

Manual

• Adjusting the Financial Data is Manual
• Reformatting Documents is not Only Manual, but prone to Errors
• Control is Limited

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The Challenge of Regulatory Disclosures: Lack of Automation, Visibility and Control

Lack of audit trail

• f approvals

Many data sources Numerous document versions

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Decentralized statement publication Manual data consolidation

Holding SGE 1 SGE 2 SGE 3 ZH 1 ZH 2 EG 1 EG 2 EG 5 EG 3 SGE 4 EG 6 EG 4

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Polling Question

What method are you currently using to comply with the XBRL regulations?

• A. Outsource to Publisher
• B. Use a 3rd Party solution (UB Matrix, Rivet, Clarity)
• C. Performance Management solution
• D. Other
• E. Not required

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Where are we with XBRL

• As of 2012 over 9000 companies are reporting with XBRL
• Over 10 million facts filed
• SEC reports that XBRL makes it easier to analyze disclosures,

focusing on accounting issues

• XBRL helps groups like FASB review proposed changes more quickly
• XBRL speed the delivery of data to clients

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U.S. SEC Mandates XBRL Filings

Mandate for public companies operating in the U.S. to file their financial reports using XBRL  Approved Dec 17th, 2008 Timetable  Largest 500 filers (over $5 billion in revenue) for fiscal periods ending on or after June 15th, 2009  All other large accelerated filers in 2010  All remaining companies in 2011

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HMRC and Inline XBRL (iXBRL)

UK companies will be required to send their Company Tax Return online using iXBRL

• Presents XBRL data in a human

readable form, either on screen or in printed output

• Enables author’s branding and

layout to be maintained, while enabling the system recognises the embedded XBRL tags

• Timetable
• Legislation in effect as of 1

January 2010

• Effective for returns delivered on
• r after 1 April 2011
• For accounting periods ending on
• r after 1 April 2010

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E-Bilanz Mandated in Germany

XBRL for financial statements will soon be required in the Federal Republic of Germany

• Taxonomy is an extended chart of

accounts

• Required statements include

balance sheet, income statement, and tax reconciliation statement

• Companies using cash-basis

accounting are exempt

• Timetable
• Introduced in December 2008
• On 22 December 2010,

postponement to 2012 was announced

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India Announces Phase 1 of XBRL Mandate

Ministry of Corporate Affairs (MCA) issued a general circular on March 31, 2011

• XBRL filing mandated for balance

sheets, profit and loss, and other statements

• Only Phase 1 announced
• Timetable
• First filing deadline is September 30,

2011, for fiscal year ending March 31, 2011

• Applies to:

– All companies listed in India and their subsidiaries, including

• verseas subsidiaries;

– All companies having a paid up capital of Rs 5 Crore and above,

• r have a turnover of Rs 100

Crore or above .

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What Clients are Looking For

• Collaborative Creation of Documents
• Ability to Create and Retain Versions
• Tightly Integrated with MS Office
• Multiple Formats (Edgar, XBRL, etc.)
• Embedded XBRL
• Seamless Data Integration

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Disclosure Management

• Adds Rigor and Transparency to the Manual Process of Creating

External Documents

• Delivers Self Service XBRL Reporting and eliminating manual and 3rd

Party Efforts

• Resulting in:

– Reduced Cost and Increased Quality – Reduced Rework/Remapping – Increased degree and granularity of tagging data sources

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Key Features Business Value

Speed and Flexibility

 Accelerate the generation of disclosure statements  Integrate data for a single view across the organization  Optimize the close from source to digital disclosure

Reduces Time

 Accelerates the collection and management of information across the entire enterprise to support regulatory disclosures

Collaboration

 Assign disclosure responsibility to distributed teams  Automate integration and data flow  Designed for ownership by finance professionals

Reduces Cost

 Streamlines and automates the collection, validation, and approvals with an easy-to-use, visual interface

Compliance and Control

 In-house production of trusted financial statements  Support multiple financial and regulatory statements  Enable creation of XBRL-based statements

Reduces Risk

 Enables the production and publication of reliable, complete, and auditable financial and regulatory statements

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What is Involved

• Develop and Deploy Solution in about 2 months
• Typical solution includes:

– US GAAP taxonomy – XBRL Mapping to External Financial Statements – Final, Adjusted, Audited Documents – XBRL Filing Submission

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Polling Question

• Would you be likely to consider implementing and deploying an

integrated solution to address XBRL?

• A. Yes this year
• B. Yes, sometime in the future
• C. No
• D. Unsure

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Oracle Hyperion Disclosure Management

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Automating & Simplifying External Reporting Oracle Hyperion Disclosure Management

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Automating & Simplifying External Reporting Oracle EPM Customer Oracle ERP Customer

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SAP Disclosure Management Overview

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SAP BusinessObjects Disclosure Management

Reduce the time, risk and cost of regulatory disclosures

• Speed and flexibility
• Accelerate the generation of disclosure statements
• Integrate data for a single view across the
• rganization
• Optimize the close from source to digital disclosure
• Collaboration
• Assign disclosure responsibility to distributed

teams

• Automate integration and data flow
• Designed for ownership by finance professionals
• Compliance and control
• In-house production of trusted financial statements
• Support multiple financial and regulatory

statements

• Enable creation of XBRL-based statements

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Speed and Flexibility

Automate disclosure processes to accelerate the “last mile” of finance

• Accelerate the generation of

financial and non-financial statements while reducing the cost of compliance

• Integrate data from multiple

sources for a comprehensive and trusted view of the

• rganization
• Optimize the entire financial

close process end-to-end, from source to digital disclosure

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Speed and Flexibility

Accelerate the generation of disclosure statements

• Re-usable report and disclosure statement

structures

• Sample templates for common financial

disclosure statements (10K, 10Q)

• Statements are composed of

components, including chapters and sub-chapters

• Components can be re-used in multiple
• ther statements
• Statement versioning
• Editor checks out a statement

component for content creation

• Updates are checked in with a new

version and comments

• Content changes from prior version are

highlighted for easy identification

• Allows roll-back to prior statement

version

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Speed and Flexibility

Integrate data for a single view across the organization

• Consolidates heterogeneous data from multiple

SAP and non-SAP sources

• Consolidation data and disclosure

notes

• Financial transactions from ERP
• Business intelligence
• Spreadsheets
• One source of data for all statements
• Centralized data repository is the

source for all disclosure statements

• Each statement can contain data from

multiple sources

• Re-use of data in multiple statements
• Data integrity through integration
• Enables refresh from source systems
• Dynamically updates data in

statements

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Speed and Flexibility

Optimize the close from source to digital disclosure

• Last mile of finance
• Last step of the Accounting and

Financial Close end-to-end process

• Manages the production, filing and

publication of financial statements and reports.

• Seamless integration across SAP and

non-SAP systems

• Entity close data from General Ledger

systems

• Corporate close data from

consolidation systems

• Disclosure notes
• Business intelligence and data

warehouses

• Spreadsheets
• Manual entries

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Collaboration

Enable communication, workflow and approvals across the organization

• Assign responsibility of

disclosure processes to distributed teams across

• rganizational units
• Automate integration and

data flow to reduce redundant, manual processes and errors

• Designed for ownership by

finance professionals for ease of use and sharing of information

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Preconfigured content for the XBRL factory

• f SAP BusinessObjects Disclosure

Management  Microsoft Excel templates with financial statements pre-tagged with extensible taxonomy Content for IFRS  IFRS-based taxonomy (International Financial Reporting Standards  Compliant with recommendations from the IFRS Foundation and regulations of the IASB (International Accounting Standards Board) Content for CAS  CAS-based taxonomy (Chinese Accounting Standards)  Compliant with regulations of the People’s Republic of China’s Ministry of Finance

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Questions

For more information

Ken Pavell National Director

(630) 452-3659 ken.pavell@experis.com

Steve Sheekey Director

( 863) 412-7296 Steven.sheekey@experis.com

6/20/2013 30 Thank you for your time!

As a long term partner, Experis has a vested interest in Your success. Our in-depth knowledge of your people, processes and technology will insure the delivery of a world-class solution with the lowest risk and at the best possible price.