SBR Extending the scope of reporting

1. SBRExtending the scope of reporting Meeting AustrianDelegation February 1, 2012

2. Extending the scope of reporting Your questions: • How is the process of adding new agencies organized? • How are agencies persuaded to join the SBR project? • What are the main obstacles when adding new agencies? • How are agencies administering their reporting obligations? Can they do that themselves, or only with the help of SBR project members? • Can agencies at sub-national level be added to the project? Standard Business Reporting Program A Netherlands governement intitiative

3. How is the process of adding new agencies organized? (1) • Extending the scope of SBR is part of the SBR program. Two members of SBR program team focus specifically on this topic. • The SBR team develops now a standard procedure for the guidance of new parties that want to deploy SBR. • Focus is on strategic partnerships based on top level commitment en support. • Participating parties must be able and willing to invest significantly in money and manpower. • The information on the SBR program by the SBR program team is focused on public parties and for private parties. • The guidance and support by the SBR team is focused exclusively on public parties. Standard Business Reporting Program A Netherlands governement intitiative

4. How is the process of adding new agencies organized? (2) The standard procedure (which is still in development) consists of the following phases (1) Orientation • comprehensive explanation of the SBR concept and its consequences • investigationonapplicationpossibilities • firstdraft of business case (2) Accessment to becomeintended SBR partner • availability of a detailed project plan • availability of manpower and financial resources • vision of new reporting chain, including acceptance of chain partners • visiononrolloutstrategy Standard Business Reporting Program A Netherlands governement intitiative

5. How is the process of adding new agencies organized? (3) (3) Intended SBR partner Rights: • use of taxolab, proceslab and test environment • passive participant in the fora that are part of the governance Obligations: • appoint project owner (top level) • participation of a representative of the SBR community in the governance of the project • run project plan (4)SBR Acceptance test • availability of an SBR reporting chain that meets the SBR requirements • capable of large-scale roll-out (5) SBR Partner • active participant in the fora that are part of the governance • commitment to the SBR concept all reporting chains (comply or explain) Standard Business Reporting Program A Netherlands governement intitiative

6. How are agencies persuaded to join the SBR project? • Information about the benefits! • Stress that the introduction of SBR in Netherlands is an irreversible process given the mandated filing by the tax authorities (in short term). • The availability of more reliable information leads to a decrease in the cost of inspection • Make use of the opportunities that arise within chains (reorganization, changes in regulations, new ICT investments) • In this stage of development early adapters can count on additional (financial) support by the government Standard Business Reporting Program A Netherlands governement intitiative

7. What are the main obstacles when adding new agencies? • Complexity • impact on processes, engineering, taxonomy • involvement of all chain partners: who takes initiative • limited availability of expertise • Contradictory interests of chain partners • interdependence • loss of autonomy • the investment of one party delivers a saving for another party • Lack of support at top level • it comes to strategic choices • high development costs • long turnaround time Standard Business Reporting Program A Netherlands governement intitiative

8. How are agencies administering their reporting obligations? Can they do that themselves, or only with the help of SBR project members? • The agency is and remains responsible for the taxonomy extension and process lay out in the chain. • The SBR team offers support in drafting a good project plan and indicates which requirements must be met. • The SBR team provides substantive support in the form of the taxolab, proceslab and the test environment. • An agency must have sufficient knowledge and expertise on XBRL and process lay out. This expertise can be hired from private parties; the SBR team hereby advises. Standard Business Reporting Program A Netherlands governement intitiative

9. Can agencies at sub-national level be added to the project? • The Dutch SBR program focuses on public organizations at national level. • The content of the SBR reports is based on laws and regulations at the national level. • The extending of the scope is focuses on other public organizations at national level within other domains (education, health, agriculture) • Only large organization are able (to this point) to deploy SBR successfully Standard Business Reporting Program A Netherlands governement intitiative