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1 Automating and Simplifying your External Reporting by Integrating XBRL Ken Pavell & Steve Sheekey Thursday, June 20, 2013 General Information Share the webinar Ask a question Votes (polling questions) Rate (before you leave) Attachments (you can download today s materials) Experis Thursday, June 20,

2 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 Experis Thursday, June 20, Meet our Presenters Ken Pavell National Director (630) ken.pavell@experis.com Steve Sheekey Director (863) Steven.sheekey@experis.com Experis Thursday, June 20,

3 Agenda The Financial Close Process & Performance Management Integrating XBRL to the Financial Close Process Disclosure Management Demo Questions Experis Thursday, June 20, The Financial Close Process 3

4 The Financial Close Process Ledger & Sub Ledgers & Other Data Close Sub Ledgers into GL Reconcile accounts Gather additional Data Sets to support close Automate and Deliver XBRL & Other Statutory filings Filings Consolidations Consolidate reconcile data based on regulations Intercompany Eliminations Multicurrency capabilities (translations & reevaluations) External Reporting Internal Reporting Compliant with principals and reporting standards Produce financial statements and book capability Render and Deliver reporting for performance analysis Automate external reporting disclosures Experis Thursday, June 20, Performance Management Link strategic goals to operational decisions Integrates all management processes Deliver consistent, reliable insights to drive action Lower costs and reduces system complexity Single version of the truth Align Report Set Goals Insight Performance Action Analyze Plan Monitor Experis Thursday, June 20,

5 Core components of BPM BP&F Short-term financial budgeting set detailed financial targets Longer-term planning set high-level targets and key strategic initiatives Financial Consolidations & Close Financial, Statutory, Management Reporting & Disclosure 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 of all consumers of the data Experis Thursday, June 20, 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 Experis Thursday, June 20,

6 Polling Question What BPM solution have you deployed? A. Oracle/Hyperion B. SAP/Business Objects/OutlookSoft C. IBM/Cognos/TM1 D. None E. Other Experis Thursday, June 20, Organizations that have implemented Performance Management more broadly are nearly four times more likely to be among the most competitive organizations in their industry Source: IDC Financial Performance & Strategy Management Experis Thursday, June 20,

7 Integrating XBRL to the Financial Close Process The Financial Close Process Ledger & Sub Ledgers & Other Data Close Sub Ledgers into GL Reconcile accounts Gather additional Data Sets to support close Automate and Deliver XBRL & Other Statutory filings Filings Consolidations Consolidate reconcile data based on regulations Intercompany Eliminations Multicurrency capabilities (translations & reevaluations) External Reporting Internal Reporting Compliant with principals and reporting standards Produce financial statements and book capability Render and Deliver reporting for performance analysis Automate external reporting disclosures Experis Thursday, June 20,

8 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 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 Experis Thursday, June 20, 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 Experis Thursday, June 20,

9 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 Experis Thursday, June 20, 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 Experis Thursday, June 20,

10 The Challenge of Regulatory Disclosures: Lack of Automation, Visibility and Control Lack of audit trail of approvals Many data sources Manual data consolidation <HTML> Decentralized statement publication Holding SGE 1 SGE 2 SGE 3 SGE 4 Numerous document versions <HTML> ZH 2 ZH 1 EG 3 EG 5 EG 1 EG 4 EG 6 EG 2 Experis Thursday, June 20, Polling Question What method are you currently using to comply with the XBRL regulations? A. Outsource to Publisher B. Use a 3 rd Party solution (UB Matrix, Rivet, Clarity) C. Performance Management solution D. Other E. Not required Experis Thursday, June 20,

11 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 Experis Thursday, June 20, 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 Experis Thursday, June 20,

12 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 or after 1 April 2011 For accounting periods ending on or after 1 April 2010 Experis Thursday, June 20, 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 Experis Thursday, June 20,

13 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 overseas subsidiaries; All companies having a paid up capital of Rs 5 Crore and above, or have a turnover of Rs 100 Crore or above. Experis Thursday, June 20, 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 Experis Thursday, June 20,

14 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 Experis Thursday, June 20, Key Features 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 Business Value 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 Experis Thursday, June 20,

15 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 Experis Thursday, June 20, 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 Experis Thursday, June 20,

16 Disclosure Management Demo Oracle Hyperion Disclosure Management Experis Thursday, June 20,

17 Oracle Hyperion Disclosure Management Experis Thursday, June 20, Oracle EPM Customer Oracle ERP Customer Experis Thursday, June 20,

18 Experis Thursday, June 20, Experis Thursday, June 20,

25 Experis Thursday, June 20, SAP Disclosure Management Overview 25

26 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 organization 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 Experis Thursday, June 20, 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 organization Optimize the entire financial close process end-to-end, from source to digital disclosure Experis Thursday, June 20,

27 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 other 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 Experis Thursday, June 20, 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 Experis Thursday, June 20,

28 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 Experis Thursday, June 20, Collaboration Enable communication, workflow and approvals across the organization Assign responsibility of disclosure processes to distributed teams across organizational 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 Experis Thursday, June 20,

29 Preconfigured content for the XBRL factory of 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 Experis Thursday, June 20, Questions For more information Ken Pavell National Director (630) ken.pavell@experis.com Steve Sheekey Director ( 863) Steven.sheekey@experis.com Experis Thursday, June 20,

30 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. Thank you for your time! 30