Integrated Reporting and XBRL

1. INTEGRATED REPORTING
AND XBRL
Enhanced Reporting
Evolved Decision Making
Empowered Stakeholder
Relationships
An XBRL Canada Webinar
Liv Watson and Brad Monterio
January 25, 2011 12:00 – 1:00pm

2. 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 Monterio
Managing Director
OFFICE EMAIL
New York bmonterio@colcomgroup.com
TODAY’S SPEAKERS

3.  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

4. CONTEXT

5. From Evansville Courier and Press
Is There A Problem?

6. The Digital Language of Financial and Business Reporting
Validation
Standardization
Calculation
Cash = Currency +
Deposits
Formulas
Cash ≥ 0
Contexts
US $
FY2004
Budgeted
Label
cashCashEquivalentsAndS
hortTermInvestments
References
GAAP I.2.(a)
Instructions
Ad Hoc disclosures
Presentation
Cash & Cash Equivalents
XBRL
Item
XBRL
Item
Presentation
Comptant 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

7. The Question is…
Can XBRL reduce accounting fraud?

8. 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

9. CONTEXT
A brief history of social reporting
1991 Shell Canada report the first-ever new-style social/environmental report�

10. 2009
June 15
2010
June 15
2011
June 15
2012
June 15
Primarily Financial Statements + Detailed Footnotes
Tier 1
Primarily Financial Statements +
Block Text Tagging
Companies Impacted :
Worldwide public float above $5
billion/ Approx. 500 companies.
Tier 2
Primarily Financial Statements +
Block Text Tagging
Primarily 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:
2013
June 15
The SEC XBRL Phased-in Mandated Timeline
CONTEXT

11. ENHANCED REPORTING

12. Pros and Cons
© Colcomgroup 2009
GOOGLE HITS
Green Reporting
37 Million
CSR Reporting
14 Million
Environmental Reporting
9.6 Million
Integrated Reporting
9.1 Million
Sustainability Reporting
6.5 Million
ESG Reporting
.25 Million
A ROSE BY ANY OTHER NAME…

13. 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)

14. FINANCIAL
REPORTING
SUSTAINABILITY
REPORTING
INTEGRATED REPORTING = ‘MERGING’ OF FINANCIAL
AND NON-FINANCIAL INFORMATION
MATERIALITY IS KEY

15. “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

16. 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

17. ENHANCED REPORTING
Sustainability Frameworks

18. 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

19. EVOLVED DECISION MAKING

20. EVOLVED DECISION MAKING

21. http://www.fmd.co.za/Reference_library/2010/Review2010/FMD10_Rev_JSE_XBRL.pdf
Integrated Reporting Mandate
Role of XBRL
EVOLVED DECISION MAKING

22. SEC Data
Data Mining Technology
with Internet Delivery
EVOLVED DECISION MAKING
Technology enabled content

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

24. You’re Only as Green
as Your Supply Chain

25. EMPOWERED STAKEHOLDER RELATIONSHIPS

26. ENHANCED STAKEHOLDER RELATIONSHIPS
Integrated Reporting Strengthens…
Supply Chain
Partners
Brand
Reputation
Engagement
Communication
Market Value
Organization
Workforce Investors &
Analysts
Public
Regulators
Advisors
Better stakeholder
engagement leads
to stronger:

27. QUESTIONS