INTEGRATED REPORTING AND XBRLEnhanced ReportingEvolved Decision Making Empowered Stakeholder Relationships

An XBRL Canada Webinar

Liv Watson and Brad MonterioJanuary 25, 2011 12:00 – 1:00pm

Brad is Managing Director of Colcomgroup, Inc.

Brad has been working with the XBRL standard – and its predecessor, XFRML – since 1999 when it was created by Liv Watson, Charlie Hoffman and a handful of other data and accounting experts. Today he counsels the global XBRL consortium and many of its members in a number of areas, including: strategic planning, new market development, messaging and positioning, marketing and communications; media relations; government and legislative affairs; sponsorship and fundraising, membership recruitment, and strategic partner development.

Brad currently Chairs the Institute of Management Accountants’ XBRL Committee and leads it efforts to educate global members about XBRL and its benefits, and to develop strategic partnerships with XBRL technology vendors and education providers.

He speaks and writes on XBRL topics regularly, including integrated reporting and sustainability reporting. Brad has recently co-authored “Bringing Order to the Chaos: Integrating Sustainability Reporting Frameworks and Financial Reporting into One Report with XBRL” with Liv Watson as part of The Landscape of Integrated Reporting published by Harvard Business School. Along with Kofi Annan, Robert Zoellick Duncan Niederauer, Liv Watson and other thought leaders, Mr. Monterio is a co-author of the book, “Trust Meltdown: The Financial Industry Needs a Fundamental Restart,” published by Media Tenor International, a leader in reputation management analytics. Brad has also written for Strategic Finance (from the IMA), SENSEX (from the Bombay Stock Exchange), Business Finance Magazine, California CPA (from the California Society of CPAs) and others.

Brad is Managing Director of Colcomgroup, a consulting firm that provides XBRL , ESG and integrated reporting advisory services . He is also Managing Director of CMH Partners*, an investment banking advisory firm and holds FINRA Series 63, 7 and 79 licenses in the capital markets. *All securities offered through Mid-Market Securities LLC, a FINRA/SIPC registered broker dealer.

Brad MonterioManaging Director

OFFICE EMAIL

New York bmonterio@colcomgroup.com

TODAY’S SPEAKERS

HISTORICAL CONTEXT

ENHANCED REPORTING What is integrated reporting?

EVOLVED DECISION MAKING Applicability and benefits

Role of XBRL

EMPOWERED STAKEHOLDER RELATIONSHIPS What does it all mean?

Q&A

AGENDA

CONTEXT

From Evansville Courier and Press

Is There A Problem?

The Digital Language of Financial and Business Reporting

Validation

Standardization

CalculationCash = Currency +

Deposits

FormulasCash ≥ 0

Contexts

US $FY2004

Budgeted

LabelcashCashEquivalentsAndS

hortTermInvestments

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

PresentationCash & Cash Equivalents

XBRLItemXBRLItem

PresentationComptant et Comptant

Equivalents

Presentation

Geld & Geld nahe Mittel

Presentation

Kas en Geldmiddelen

Presentation

现金与现金等价物

Presentation

現金及び現金等価物

Presentation

Деньги и их эквиваленты

Presentation

Гроші та їх еквіваленти

Other Linked Data

XBRL OVERVIEW

Adding Meaning to Electronic Business Data

The Question is…Can XBRL reduce accounting fraud?

Securities Act of 1933: This law, together with the Securities Exchange Act of 1934, which created the SEC, was designed to restore investor confidence in our capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing.

Creation of the US Securities & Exchange Commission

CONTEXT

CONTEXT

A brief history of social reporting1991 Shell Canada report the first-ever new-style social/environmental report�

2009June 15

2010June 15

2011June 15

2012June 15

Primarily Financial Statements + Detailed FootnotesTier 1

Primarily Financial Statements + Block Text Tagging

Companies Impacted : Worldwide public float above $5 billion/ Approx. 500 companies.

Tier 2Primarily Financial Statements +

Block Text TaggingPrimarily Financial Statements + Detailed Footnotes

Tier 3 Primarily Financial Statements +

Block Text Tagging

Primarily Financial Statements + Detailed Footnotes

Companies Impacted :Worldwide public float above $700 million / Approx. 1,000 companies. Companies Impacted :

All additional SEC registered companies /Approx. 8,500 companies:

2013June 15

The SEC XBRL Phased-in Mandated Timeline

CONTEXT

ENHANCED REPORTING

Pros and Cons

© Colcomgroup 2009

GOOGLE HITSGreen Reporting

37 MillionCSR Reporting

14 MillionEnvironmental Reporting

9.6 MillionIntegrated Reporting

9.1 MillionSustainability Reporting

6.5 MillionESG Reporting

.25 Million

A ROSE BY ANY OTHER NAME…

Pros and Cons

© Colcomgroup 2009

SUSTAINABILITY

The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

World Commission on Environment and Development (The Bruntland Report)

FINANCIAL REPORTING

SUSTAINABILITY REPORTING

INTEGRATED REPORTING = ‘MERGING’ OF FINANCIAL AND NON-FINANCIAL INFORMATION

MATERIALITY IS KEY

“Achieving truly integrated reporting is far more than a technical exercise. It is [the]

challenge to mesh two fundamental traditions of

corporate disclosure—financial reporting (FR) and sustainability

reporting (SR)—that embody distinctly different definitions of

the nature of the firm.”

Allen White, Tellus Institute

ENHANCED REPORTING

FINANCIAL REPORTING

SUSTAINABILITY REPORTING

Mature practice area Established standards and

frameworks for reporting High credibility and reliability Strong market reliance for

decision making – solid link to economic value

Emerging practice area Multiple standards and

frameworks for reporting Low credibility and reliability Growing market reliance for

decision making – weak link to economic value

CHALLENGE: ACHIEVE EQUILIBRIUM

ENHANCED REPORTING

Sustainability Frameworks

ENHANCED REPORTING

Challenges to overcome

Not universally understood by companies and stakeholders Link to economic value not apparent Usually not in the strategic or business plan No uniform standard… yet Often championed by Marketing or PR, not C-Suite Hard to measure

EVOLVED DECISION MAKING

EVOLVED DECISION MAKING

http://www.fmd.co.za/Reference_library/2010/Review2010/FMD10_Rev_JSE_XBRL.pdf

Integrated Reporting Mandate

Role of XBRL

EVOLVED DECISION MAKING

SEC Data

Data Mining Technology with Internet Delivery

EVOLVED DECISION MAKING

Technology enabled content

SUPPORT

ONE REPORT

ONE DATA SET

Accountants

Attorneys

Other External Advisors

DASHBOARDS & OUTPUT

Other Stakeholders (e.g., Board, Investors, Regulators)

Accountants

Attorneys

Other External Advisors

Management Teams(CEO, CFO/Finance, Operations, Sales & Marketing, IR)

Access Controls and Permissioning

THE CLOUD

One Integrated Reporting ProcessManagement Teams(CEO, CFO/Finance, Operations, Sales &

Marketing, IR)

You’re Only as Greenas Your Supply Chain

EMPOWERED STAKEHOLDER RELATIONSHIPS

ENHANCED STAKEHOLDER RELATIONSHIPS

Integrated Reporting Strengthens…

Supply Chain Partners

BrandReputationEngagementCommunicationMarket Value

Organization

Workforce Investors & Analysts

Public

Regulators

Advisors

Better stakeholder engagement leads to stronger:

QUESTIONS