Accountancy Profession Adding Value With XBRL

Barry Melancon, CPAPresident and CEOAmerican Institute of Certified Public Accountants

The AICPA … The Professional organization for CPAs,

with more than 350,000 CPAs in both corporate management / finance and CPA firms

Mission: Provide CPAs with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients

The Accountancy Profession is committed to:

Core values of – Integrity Objectivity Competence

“Proactively” protecting the public interest An efficient and effective global capital

market through better information

AICPA and the CPA Profession’s Commitment to XBRL Vision and leadership Invested in and supported XBRL Invested in the US Taxonomies – crucial to

US market adoption Support XBRL International with people

and infrastructure Recognized from the beginning the need

for interdisciplinary collaboration

The business reporting supply-chain

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investment,Lending, andRegulation

Processes

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRLXBRLXBRLXBRLXBRLXBRL

Collaboration is KEY!!!

Why XBRL?Fundamental transformation in the way business reporting information will be exchanged, aggregated, and analyzed Improve communication with investors More efficient data aggregation Improved analysis More efficient creation of business reports Better markets through better information A critical enabler to the Enhanced Business Reporting

Consortium

Savings

Quality

Efficiency

Barcode has done for product distribution …

… what XBRL is doing for business reporting

Who Benefits?ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investment,Lending, andRegulation

Processes

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRLXBRLXBRLXBRLXBRLXBRL

The business reporting supply-chain

CPA’s Role in XBRLExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investment,Lending, andRegulation

Processes

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRLXBRLXBRLXBRLXBRLXBRL

The business reporting supply-chain

Major AICPA commitments to Enhancing Business Reporting Improving audit quality Stronger internal controls and effective corporate

governance Detecting and preventing fraud Leading the way towards improved business

reporting

XBRL can play a key role in each of these efforts

Better information leads to better management… better governance… better markets

Call to Action Now is the time for CPAs to act! The

tools are ready! Participate in the SEC Voluntary Filing

Program Take XBRL to the private company

sector. XBRL is not just for public company reporting.

Looking into the Crystal Ball … SEC voluntary filing program takes off Companies and banks start to talk in XBRL CPAs opine on XBRL documents Better and more analysis Business sectors adopt – lending, tax, etc. EBR + XBRL = value of financial information

grows Enhancing business reporting in ways we

can’t yet imagine …

The Global Accounting Profession

The World Counts on …

Accountancy Profession Adding Value With XBRL

Barry Melancon, CPAPresident and CEOAmerican Institute of Certified Public Accountants