Report on global adoption of unified accounting and

Report on global adoption of unified accounting and reporting standards and the very latest from the IASCF § Kurt Ramin § Chairman (Emeritus), XBRL International, Advisor (IASCF) § London, 51. 512 / 0. 094 § November 22, 2007 Financial Reporting Goes Global 1

http: //www. oracle. com/openworld/2007/keynotes. html XBRL at IASC Foundation

Mission & Objectives The Mission of the IASC Foundation XBRL Team is to provide users an IASCF developed XBRL taxonomy for consistent adoption and implementation of IFRS standards The objectives are to: ü Deliver the XBRL Taxonomy with the same quality, in the same languages and at the same time as the paper version ü Encourage the XBRL implementation wherever IFRS is used ü Make sure the Intellectual Property (IP) is protected and respected Financial Reporting Goes Global 3

Agenda 1. Introduction, Organization, History 2. What’s happening over the last year? 3. Update on global IFRS adoption 4. IASB’s future plans and how the very latest will impact the accounting profession 5. What challenges does the future hold for reporting standards? Financial Reporting Goes Global 4

704 pages Part I: Origins Part II: 1973 -1987 Part III: 1987 -2000 Financial Reporting Goes Global 5

§ § 465 pages From 1966 to 1973 to 1995 to 2001 (IOSCO, SEC) § The New Structure (Trustees, full time Board, localization of standards and use of technology) § References, Index, Acronyms, Pictures Financial Reporting Goes Global 6

IASB and IASC Foundation § IASB is made of 14 members making the Standards and has the technical expertise § IASC Foundation is providing the context to achieve the Board mission § Others: § Standards Advisory Council (SAC) § IFRIC Financial Reporting Goes Global 7

Roadmap to Convergence § § § § Norwalk agreement, October 2002 Roadmap: reconciliation by 2009 or earlier Memorandum of understanding, February 2006 Seek progress in areas identified (11 areas) Principles based – new framework SMEs will play a major role Taxonomies: XBRL GL, SMEs, IFRS, US GAAP (Definition rich) § SEC Roundtable, March 6, 2007 Financial Reporting Goes Global 8

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2. What’s happening - 2007 § New Standards § New IFRICs § New Publications Financial Reporting Goes Global 1

2007 § New Standards – NO new standards!, but lots of DP’s, Exposure drafts – and comment letters! § New IFRICs – just a couple § § New Publications --eifrs Education – Conferences (Zurich, Singapore) Translations Financial Reporting Goes Global 1

§ § § 2513 pages IASCF Constitution Preface to IFRS Framework Due Process Handbook IFRSs 1 to 8 IASs 1 to 41 Interpretations Glossary of terms Index Standard, BC, IG Financial Reporting Goes Global 1

2007 Spanish and Localized Editions of IFRS 40 languages Financial Reporting Goes Global 1

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Principle: Principle based standards Principles Financial Reporting Goes Global Rules 1

FASB Codification Overview Organizing authoritative US-GAAP by topic Financial Reporting Goes Global 1

Objective and Status § Integrate and topically organize all relevant accounting guidance issued by the U. S. standard setters § FASB, AICPA, EITF, SEC. § The codification draft is expected to constituents in 2007 for an extended verification period § The objective of the verification process is to ensure that the codification accurately reflects existing U. S. GAAP § Once the Board addresses constituent comments, the codification will become the single authoritative source of U. S. GAAP and will supersede all existing standards Financial Reporting Goes Global 1

Topical Structure § Topics represent a collection of related guidance in the following hierarchy: § Topic > Subtopic > Section > Subsection § Each topic is organized into one of four areas: § § General principles and objectives Overall financial reporting presentation, Transactional and financial statement accounts, Industry. Financial Reporting Goes Global 1

Subtopic Sections § Sections are consistent from one subtopic to the next. § In the list that follows, topic numbers are represented by XXX, subtopic numbers by Y; section numbers are the actual numbers: 1. 2. 3. 4. 5. 6. 7. 8. 9. XXX. Y. 00—Status (References to standards affecting the subtopic) XXX. Y. 05—Overview and Background XXX. Y. 10—Objectives XXX. Y. 15—Scope and Scope Exceptions (if any) XXX. Y. 20—Topical Definitions / Glossary XXX. Y. 25—XBRL Definitions XXX. Y. 30—Recognition (assumes an asset/liability conceptual framework) XXX. Y. 35—Initial Measurement (assumes an asset/liability conceptual framework) XXX. Y. 40—Subsequent Measurement (assumes an asset/liability conceptual framework) Financial Reporting Goes Global 2

Subtopic Sections, cont. 9. 10. 11. 12. 13. 14. 15. XXX. Y. 45—De-recognition (assumes an asset/liability conceptual framework) XXX. Y. 50—Other presentation matters (B/S classification, cash flow, EPS, taxes, etc. ) XXX. Y. 55—Disclosure XXX. Y. 60—Implementation guidance and illustrations XXX. Y. 65—Relationships (references to other topics or subtopics that may be of relevance. For example, the Interim Reporting topic may have discussions of LIFO reserves as the object of an illustration or example. In such cases, the relationships section would refer to that material. ) XXX. Y. 70—Transition and Open Effective Date Information XXX. Y. 75—Links to Grandfathered Material Financial Reporting Goes Global 2

ED IFRS for SMEs § § § ED 254 pages (IG 80 p. BC 48 p. ) Definition (no public market – 50 people) Stand alone document Based on concepts and principles of full IFRS Topics omitted (Price level, interim, EPS, segment, simpler option) § Recognition and Measurement (FI, GW and impairment, less FV for agriculture) § Frequency for updates § Respond by November 30, 2007 Financial Reporting Goes Global 2

Possible Simple Format (per period) Sort statements (Net: assets Four statements and aligned/ related Disclosure: -liabilities) 1. People 2. Fixed Assets 3. Product (Flow) 4. Financial (Flow) 5. Communicatio n (Information Flow) 1. Statement of Financial Position 2. Cash Flows 3. Recognized Income and Expense for Period 4. Statement of Changes in Equity-NET (including to owners) Add Related Disclosure: (People, Fixed Assets, Product, Financial, Communication) Financial Reporting Goes Global 2

3. Global adoption § World Standard Setter’s Meeting § Organizational Changes § Latin America and Columbia Financial Reporting Goes Global 2

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World Standard Setters Meeting § § September 24, 25 in London 40 Nations participating (Iran, Israel…. § Agenda 1. Welcome Sir David Tweedie, IASB Chairman 2. Adoption and Implementation of IFRSs (Australia, China, Japan, Canada, Korea, India, Mexico) 3. US GAAP/IFRS Convergence Update 4. Implementation and Enforcement of IFRSs 5. SMEs 6. Other special topics (Framework, presentation of Financial Statements, Fair Value Measurements) Financial Reporting Goes Global 2

IFRS adoption in Latin America § Required § Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Venezuela § Permitted § El Salvador, Mexico, Paraguay, Peru § Future § Brazil (2010), Chile (2009) § Ecuador (2008) § Uruguay ? ? ? § Columbia? ? Financial Reporting Goes Global 2

XBRL International Jurisdictions NO SE FI NL IASB CA LU DE DK CZ PL RU HU SI UK AT IE US BE TR ES PT GR FR IT CH VZ Established Jurisdictions Provisional Jurisdictions UA LB CN IL JP KR IN MT TW HK AE CO SG BR Focus in 2008 ZA Projects Ongoing Ibero-América AU NZ AR Financial Reporting Goes Global 2

Tagging of Financial Data RFID - NFC Radio Near Field Frequency Communication Identification <Current. Assets> 5329000000 </Current. Assets> <Current. Assets context. Ref="End_2004" unit. Ref="EUR"> 5329000000 </Current. Assets> Unit Context Financial Reporting Goes Global 2

Tomorrow’s Financial and Business Reporting Supply Chain Business Events Entities Data Aggregators Users Electronic input: §Electronic bank statements §Electronic invoices §Credit cards System XBRL GL §Scanning Regulators ERP XBRL Management Reports XBRL External Reports Commercial XBRL Others §Paper Proprietary Software Assurance Financial Reporting Goes Global 3

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3. Impact on the Accounting Profession (Political and technical) § § § § US SEC (task forces) FEI (Casey speech) PIOB (Audit) Europe (EFRAG and parliament) Capital Markets (stock exchanges) Large software companies (SAP/Oracle) Data aggregators (Thomson/Reuters) Financial Reporting Goes Global 3

1 2 3 4 Also in IFRS Convergence Multi-language No stress Financial Reporting Goes Global 3

4. Challenges – Future - Reporting § § § Conventional Standards (Concepts) Technology Localization Currencies and Capital Markets Legal § Read my Blog! (or contact me) § § http: //blog. hitachixbrl. com/2007/09/05/financial-reporting-reform-and-xbrlpart-i/ http: //blog. hitachixbrl. com/2007/09/12/financial-reporting-reform-and-xbrlpart-2 Financial Reporting Goes Global 3

XBRL: It’s Unstoppable <Questions/> <name>Kurt Ramin</name> Kurt Ramin：自中世纪的意大利僧侣发明 <position> Emeritus Chairman, XBRL International Steering Committee</position> <email>kramin@iasb. org</email> 51 30 44 N 0 05 41 W XBRL: Transforming Financial and Business Reporting Financial Reporting Goes Global 3