Report on global adoption of unified accounting and reporting standards and the very latest from the IASCF Kurt Ramin

1. 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

2. http://www.oracle.com/openworld/2007/keynotes.html

3. 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: • Deliver the XBRL Taxonomy with the same quality, in the same languages and at the same time as the paper version • Encourage the XBRL implementation wherever IFRS is used • Make sure the Intellectual Property (IP) is protected and respected

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

5. 704 pages Part I: Origins Part II: 1973-1987 Part III: 1987-2000

6. 465 pages From 1966 to 1973 1973 to 1995 1995 to 2001 (IOSCO, SEC) The New Structure (Trustees, full timeBoard, localization of standards and use of technology) References, Index, Acronyms, Pictures 6

7. 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

8. 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 8

10. 2. What’s happening - 2007 • New Standards • New IFRICs • New Publications

11. 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

12. 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

13. 2007 Spanishand Localized Editions of IFRS40 languages

16. Principle: Principle based standards Principles Rules

17. FASB Codification Overview Organizing authoritative US-GAAP by topic

18. Objective and Status 18 • 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

19. Topical Structure 19 • 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.

20. Subtopic Sections 20 • 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: • 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)

21. Subtopic Sections, cont. 21 • 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

22. 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 22

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

24. 3. Global adoption • World Standard Setter’s Meeting • Organizational Changes • Latin America and Columbia

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

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

28. XBRL International Jurisdictions NO SE FI NL DE CZ DK IASB LU PL RU HU CA SI UK AT UA IE BE TR US ES GR CN FR PT IL LB JP IT KR CH IN MT VZ TW HK Established Jurisdictions AE CO SG Provisional Jurisdictions BR Focus in 2008 AU ZA Projects Ongoing NZ AR Ibero-América 28

29. Tagging of Financial Data RFID - NFC Radio Near Field Frequency Communication Identification </CurrentAssets> <CurrentAssets> 5329000000 <CurrentAssetscontextRef="End_2004" unitRef="EUR"> 5329000000 </CurrentAssets> Unit Context 29

30. Tomorrow’s Financial and Business Reporting Supply Chain ERP System XBRL GL Business Events Entities Data Aggregators Users Electronic input: • Electronic bank statements • Electronic invoices • Credit cards Regulators XBRL XBRL XBRL XBRL XBRL Commercial • Scanning • Paper Others Management Reports External Reports Proprietary Software Proprietary Software Proprietary Software Proprietary Software Assurance 30

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33. 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)

34. 1 Also in IFRS 2 Convergence 3 4 Multi-language No stress

35. 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-xbrl-part-i/ • http://blog.hitachixbrl.com/2007/09/12/financial-reporting-reform-and-xbrl-part-2

36. 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 SteeringCommittee</position> <email>kramin@iasb.org</email> 51 30 44 N 0 05 41 W XBRL: Transforming Financial and Business Reporting 36