Previous Solution – “It’s About Me”

1. Regulator Regulator Regulator Company Regulator Regulator Regulator Company Company Regulator Regulator Regulator Regulator Company Company Company Regulator Regulator Regulator Regulator Company Company Company Regulator Regulator Regulator Regulator Company Company Company Regulator Regulator Regulator Regulator Company Problem = Exchange of data between regulated entity and regulator Company Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Company Regulator Regulator Regulator Regulator Company Company Company Regulator Regulator Regulator Regulator Company Regulator Company Company Regulator Regulator Regulator Regulator Company Regulator Company Company Regulator Regulator Regulator Regulator Company Regulator Company Company Regulator Regulator Company Regulator Regulator XML Schemas Company Regulator Regulator Regulator Regulator Proprietary solution for Regulator Looks good to the regulator Regulator Regulator Regulator Regulator Company Regulator XML Schema Company Company Regulator Regulator Regulator Company Regulator Company Company Company Regulator Regulator Company Regulator Regulator Company Company Company Regulator Regulator Company Regulator Regulator Company Company Company Regulator Regulator Company Regulator Company Company Company Regulator Regulator Company Regulator Company Regulator Regulator Proprietary solutions looks different to the companies and is a costly and complex model Regulator Company Company Regulator Regulator Regulator XML Schema Company Company Regulator Regulator Regulator Company Company Regulator Regulator solution = Use XML Schema to define terms for exchange. Regulator builds taxonomy using a (XML Schema) proprietary platform. Company Regulator Regulator Company Company Company Regulator Regulator Company Company Company Regulator Regulator Company Company Company Regulator Previous Solution – “It’s About Me”

2. Regulations Stds (FASB, IFRS) Interpretative Guidance 3rd Party Interpretative Guidance Audit Guidance Instructions Internal Reporting Instructions Reporting Sources XBRL Validation XBRL: Benefits to All Participants Company Regulator

3. Tax Regulators Investors Creditors Lenders Website Aggregators One way One way XBRL BUSINESS REPORTING XBRL GL Journal Taxonomy BUSINESS ERP G/L Packages CRM Transaction Creation 2-way 2-way (e-)Trx X12, UBL, CEFACT, OTHER XML Suppliers Customers • Orders • A/P • Delivery • Orders • A/R • Delivery Filling Out the Audit Supply Chain Detail to summary: DRILL UP Intra system Detail Accounting recognition/ classification

4. XBRL GL, From Entry to Reporting • XBRL GL framework is a common language • From generic representations of individual documents triggering transactions • Built from standardized blocks of resources, agents, events, documents, links to accounts, reports • Through trial balance • Through a consolidation process • Able to represent detailed or summarized information

5. The Building Blocks of XBRL GL • Journal entries • Account, amount, date, description • Parties/agents • Customers, vendors, employees • Source documents • Document number, dates, file location • Resources • Inventory, services, fixed assets, KPI • Mappings to and between • Accounts, Classifications, XBRL reporting taxonomies J A S R M

6. Modular and Reusable/Generic • Core has common elements, lays out the framework • Jurisdictional add-ons • Functional add-ons • Industry add-ons • Other add-ons One or many types of entry groupings One or more “entries” One or more “detail lines” per entry

7. XBRL GL Framework Insurance transactions Palette Schema Industry Specific Cash Management TAF US Japan “Tax” Multicurrency US MUC Business Facts BUS GL Core XBRL GL Core

8. “GL” versus “General Ledger”: Holds More

9. XBRL GL Can Represent • The chart of accounts, representing both posting accounts and customers, vendors, or other items that may be assigned an account in an international sense of the word; • Journal entries, bothfrom subsystems and within the General Ledger or financial reporter; • Document summaries, with generic representations of the information that is presented on standardized business documents; • Descriptions of customers, vendors, employees and banks, either in connection with the chart of accounts (European style) or independently (US style); • Descriptions of inventory items, performance metrics or other quantifiable items; • Status documents, including listings of receivables still owing, payables yet owed, inventory in stock, as well as • Standard accounting summaries such as trial balances, “general ledger”, source journals and other accounting-oriented summaries.

10. Benefits of XBRL GL • Reduces the manual effort and/or costs of integration through a standard export format • Standardized detailed output enable the participation of general ledger information in external systems (e.g. consolidation, continuous auditing, etc…) • Through standardized data import, consumers of GL information can reduce effort and/or costs of moving data from one system to another.

11. Commercial Loan Monitoring Challenges People • Monitoring is time consuming • Acquired skill • Lack of trained commercial lenders Priority & Focus • Imminent vs. downstream risk • New credit vs. risk management on existing book Cost challenges • Expensive to monitor • More expensive to monitor “soft assets”

12. Commercial Loan Monitoring Challenges Infrastructure • Reporting on risk • Reporting on progress • Reporting on change • Decision consistency • Documenting decisions • Compounded with geographic separation Information • Sea of data • Staleness of data

13. Internet Internet The Covarity Dashboard Solution • Borrower exports financial documents directly from accounting system or tax package into the Covarity Dashboard solution • Lender conducts low effort loan reviews, handling flagged exceptions and monitoring health of loan portfolio in real time • Conduct loan reviews & monthly margin analysis • Handle flagged exceptions • Monitor loan portfolio • Upload financial documents • View financial metrics Bank (via browser) Borrower (via browser) Covarity Dashboardhosted solution