1. 1 PwC PricewaterhouseCoopers What does XBRL mean for you * November 28, 2007 *connectedthinking

2. PricewaterhouseCoopers2 Discussion Topics What is XBRL? Where is XBRL relevant? What are the benefits / costs? Where do you implement? What is the SEC doing? What should you do next?

3. PricewaterhouseCoopers3 Why Standards are important to you In 1883, Emil Christian Hansen developed a repeatable method for propagating pure yeast. (the standard) Revolutionary to the brewing industry. Given freely away to other brewers Today, used in all lager beers around the world. Economic impact: Lower costs; improved quality (consistency); increased volumes; accelerated frequencies; more efficient processes; new markets.

4. PricewaterhouseCoopers4 What is XBRL?

5. PricewaterhouseCoopers5 What is XBRL? eXtensible Business Reporting Language International platform for business reporting An information standard that enhances the quality and efficiency of business information for internal and external consumers Supply chain understanding of a standardized way to communicate business information Provides information with identity and context that can be understood by a range of software applications allowing seamless interface with databases, business reporting systems and spreadsheets Can be used to enhance compliance processes An International Business Information Format Standard

6. PricewaterhouseCoopers6 XBRL International, independent non-profit consortium Develops and maintains the XBRL Standard Recognizes and encourages XBRL best practices (approves taxonomies) Provides a framework for further development Facilitates knowledge sharing with members & supports XBRL Jurisdictions Japan United States Australia Germany Canada United Kingdom IASB China Sweden Denmark Switzerland Netherlands New Zealand Brazil South Africa Korea Colombia Argentina Singapore Spain Ireland Russia Italy France Belgium Poland United Arab Emirates India

7. PricewaterhouseCoopers7 Validation Standardization XBRL – More Than Just Definitions Calculation Cash = Currency + Deposits Formulas Cash ≥ 0 Contexts US $ FY2004 Budgeted Label cashCashEquivalentsAn dShortTermInvestments References GAAP I.2.(a) Instructions Ad Hoc disclosures Presentation Cash & Cash Equivalents XBRL Item XML 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

8. PricewaterhouseCoopers8 What does XBRL Look Like? What does XBRL look like? Example here What does a Taxonomy look like? Example here How does it make your life better? Example here

9. PricewaterhouseCoopers9

10. 10 10 ABRA IFRS Taxonomy Viewer Official ABRA IFRS Taxonomy Viewer - open source online ABRA viewer Languages: Portuguese German Italian Japanese Spanish Dutch being prepared: Polish, Hebrew, Hungarian, Arabic etc.

11. PricewaterhouseCoopers11 IFRS-GP Taxonomy

12. PricewaterhouseCoopers12 How do you measure success? Is the number of companies reporting in XBRL measured in the: A.100’s B.1,000’s C.10,000’s D.100,000’s E.1,000,000’s F.Won’t raise my hand for free currency

13. PricewaterhouseCoopers13 Where is XBRL relevant?

14. PricewaterhouseCoopers14 Government Agencies Australian Government Australian Tax Office Committee of European Banking Supervisors (CEBS)/COREP Chinese Securities Regulation Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges} Dutch Government Spanish Stock Exchange Commission – 3000 companies Statistics Dept of Ireland Other Bank of Japan Bundesbank Eurostat Financial Service Agency of Japan The Irish Revenue Singapore ACRA XBRL Regulatory Adoption – some of those publicly announced Commercial Financial Services and Others Canadian Securities Regulators KOSDAQ – Korea Bank of Spain National Bank of Belgium National Tax Agency of Japan New Zealand Exchange U.S. Securities & Exchange Commission Shanghai Stock Exchange s Shenzhen Exchange Singapore ACRA Tokyo Stock Exchange UK Companies House UK Inland Revenue/HMRC US Federal Financial Institutions Examination Council (includes FDIC)

15. PricewaterhouseCoopers15 How do you define convergence? IFRS GAAP Local Territory GAAP Local Territory Statutory GAAP Local Territory Statistical Local Territory Tax Federal Local Territory Tax State & Local Local Territory Performance Others?

16. PricewaterhouseCoopers16 The Dutch Taxonomy Project http://www.xbrl-ntp.nl/english http://www.xbrl-ntp.nl/english “The Dutch government intends to reduce the administrative burden of businesses with 25 percent.”

17. PricewaterhouseCoopers17 The benefits to business are ultimately estimated rise to $795 million per year on an ongoing basis.

18. PricewaterhouseCoopers18 II. Taxonomies building and implementation 2005-2007Spanish TaxonomiesDone / Developing IPPPublic Periodic InformationStock Exchange Sup. PGC90GAAP 1990ICAC (Government) SSTProperty Appraisal CompaniesBank of Spain ES-BE-FSFinancial Information Exch.Bank of Spain ES-BE-CBxCentral Balance SheetBank of Spain SEPBLACAnti Money LaunderingBank of Spain BPBalance of PaymentsBank of Spain IGAEPublic Sector AccountingGov. Accounting INEStructural StatisticsNat’l Statistics Institute RSCCorp. Social ResponsibilityAECA (Accountants) LENLOCRendering of AccountsLocal Entities Superv. XBRL SPAINGOAL MAIN INICIATIVES LATINOAMERICA APPROACH Banco de Espana

19. PricewaterhouseCoopers19 Business Reporting Processes Access Validate Analyze Publish

20. PricewaterhouseCoopers20 Pervasive Process Problems Disparate data stores/warehouses each with their unique architecture and/or chart of accounts Standard chart of accounts are manually maintained and updated across range of disparate data stores/warehouses Business rules are articulated within proprietary applications based on the physical location of the data within the specific application Presentation templates dictated by applications where the data is resident Validation and analysis of data is a consumer’s responsibility Relationships between processes, data, policies, regulations are implicit and reliant on the experience and knowledge of individuals

21. PricewaterhouseCoopers21 The business reporting supply chain External Busines s Reportin g Business Operations Internal Busine ss Reporti ng Investme nt, Lending, Regulatio n Processes Economic Policymak ing Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators Software Vendors and Service Providers Management Accountants Companies Central Banks XBRL Global Ledger XBRL External Reporting Transaction Layer

22. PricewaterhouseCoopers22 What application is most commonly used for reporting? A. Cartesis (SAP) B. Navision C. FRx (Microsoft Dynamics) D. Hyperion Financial Management (Oracle Reports) E. Crystal Reports F. Office G. Other

23. PricewaterhouseCoopers23 United Technologies Corporation Current 10-Q Process Flow ERP Qtr FS in Word Edgar HFM ERP Qtr FS in HTML Qtr FS in XBRL Supplemental Data Review and Check Total Process Time: 845 Hours

24. PricewaterhouseCoopers24 United Technologies Corporation Future 10-Q Process Flow ERP Qtr FS in XBRL Edgar HFM XBRL Tagged ERP Supplemental Data XBRL Tagged Total Process Time: 700 Hours

25. 25 What are the benefits and costs?

26. PricewaterhouseCoopers26 First lets highlight existing problems: Analytical concepts / controls are: Embedded in specific applications Redundant across applications Inflexible in adjusting to market changes Difficult to synchronize across a variety of applications Opaque and difficult to manage and coordinate Others problems as well

27. PricewaterhouseCoopers27 As a result: The integration of disparate systems are: Based upon the physical integration of various software applications Implemented by systems integrators and consultants Inflexible when considering incremental systems of newly acquired entities Not that supportive of your current compliance process needs

28. PricewaterhouseCoopers28 Priority Process Opportunities How does information access work? Who is responsible for validation? Who is responsible for analysis? Who is responsible for reporting?

29. PricewaterhouseCoopers29 Business Process Change Legacy Processor Validation The Prior process validation rules were applied too late in the process to do any good. As a result, the errors were sent back to the banks for ‘correction’ and thus a cycle of error and corrections ensued.

30. PricewaterhouseCoopers30 Business Process Change Current The current process explicitly defines the data requirements and related business & validation rules such that they can be applied at the bank level. This simply shift enabled an increase in: - data quality (from 68% to under a 5% error rate), - processing time (from over 45 to under 2 days), and - costs (from over 1,000 to under 200 employees).

31. PricewaterhouseCoopers31 Primary Costs Collaboration across silos Process reengineering / design Change management Taxonomy development – (aka information architecture) Software enhancements Embedded in new versions Available plug-ins New applications? (Taxonomy Management, Validation) http://www.xbrl.org/tools http://www.xbrl.org/tools

32. PricewaterhouseCoopers32 Summary Thoughts Supply Chain standardization effort Economic accrue to all supply chain participants Adoption is accelerating around the world Convergence of information models Processing enhancements available to all Validation, Analysis, References Cheaper, Smarter, Faster Collaboration is critical (at all levels)

33. 33 Where do you implement?

34. PricewaterhouseCoopers34 The business reporting supply chain Externa l Busines s Reporti ng Business Operations Interna l Busine ss Report ing Investmen t, Lending Regulatio n Process Steps Economic Policy Making Design and push back the reporting concepts and business rules throughout the supply chain Enables timely, accurate and complete data to flow back up the supply chain Definitions and Formulas Definitions and Formulas Definitions and Formulas Definitions and Formulas Definitions and Formulas Definitions and Formulas Definitions and Formulas Definitions and Formulas

35. PricewaterhouseCoopers35 Identify the optimal implementation location Manual, untimely, inaccurate, incomplete aggregation or consolidation processes Manual access (cut & paste) Consumer or inadequate validation Analytics embedded/opaque rather than shared Implicit knowledge required (e.g. policies) Sourcing from wide range of disparate sources Multiple ledgers accessed within common processes Lack of ‘standard chart of accounts’ implementation International operations & processes (e.g. language) Others

36. PricewaterhouseCoopers36 Key Implementation Questions? What critical information is not available in a timely, accurate or complete manner? Where is there the most pain? Is poor data quality a common topic? Are there common controls that have different implementation concepts depending upon the software? Is there a track record of collaboration or silo oriented efforts? Where is there the largest opportunity for cost savings? Do you have the proper tools? And training? Does your organizational culture favor ‘big bang’ or evolutionary change?

37. PricewaterhouseCoopers37 Common implementation areas Compliance/consolidation/aggregation processes Spreadsheet aggregation processes Standardized or ‘Virtual warehouse’ Standardized Ledgers, Journals, etc. Analytical processes (controls, internal audit) Reporting processes Business Intelligence Corporate Policies Entity services Others

38. PricewaterhouseCoopers38 What is the SEC doing?

39. PricewaterhouseCoopers39 Chairman Christopher Cox of the SEC “I'd like to invite every public company, [especially] those companies not yet involved in our voluntary filing program, to consider whether they should obtain a copy of this new GAAP set of data tags... and its supporting documentation and consider using it alongside your current process as you prepare your calendar 2007 filings or your filings for the fourth quarter of 2007.” Will XBRL be mandated? “This is the recommendation that we will be seeking from all of the offices within the Spring of next year.” From the “Major Announcement About Interactive Data in Financial Reporting, Tuesday, September 25, 2007”

40. PricewaterhouseCoopers40 Voluntary Filing Program Test group opened in early 2006 and over 40 companies have joined to date Commitment to submit 4 XBRL based filings over 12 months Commitment to provide feedback on level of effort and cost SEC staff provides accelerated reviews of registration statements or annual reports to test group participants Test group continues to remain open to new participants (contact Jeff Naumann at naumannj@sec.gov for more information)naumannj@sec.gov Cost is nominal $5k to $25k for initial ‘bolt on’ approach.

41. PricewaterhouseCoopers41 Exelon Generation Company, LLC Fastenal Co. Ford Motor Company Ford Motor Credit Company General Electric Company Gol Intelligent Airlines, Inc. Infosys Technologies Limited Lehman Brothers Holdings Inc. Liberty Media Corporation Microsoft Corporation Net Servicos De Comunicacao SA NYSE Euronext Old Mutual Capital, Inc. PECO Energy Company PepsiCo, Inc. Pfizer, Inc. R.R. Donnelley & Sons Company Radyne Corporation South Financial Group, Inc. Tenet Healthcare Corporation United Technologies Corporation W. R. Grace & Co. Xerox Corporation XM Satellite Radio Holdings, Inc. SEC Voluntary Filing Program http://www.sec.gov/spotlight/xbrl.htm http://www.sec.gov/spotlight/xbrl.htm Includes range of notable filers including: 3M Company Alcoa Inc. Anadarko Petroleum Corporation Automatic Data Processing, Inc. Altria Group, Inc. Banco Bradesco S.A. Banco Itaú Holding Financeira S.A. Bowne & Co. Inc. Brazilian Petroleum Corporation (a/k/a Petrobras SA) Bristol-Myers Squibb Company Broadridge Financial Solutions, Inc. Comcast Corporation Commonwealth Edison Company Crystal International Travel Group, Inc. The Dow Chemical Company Dupont E. I. de Nemours and Company EDGAR Online Inc. E*TRADE Financial Corporation Exelon Corporation Market Cap > $2 Trillion

42. PricewaterhouseCoopers42 SEC - XBRL Related Activities $49m EDGAR Modernization project (XBRL Compliant) $5.5m US GAAP XBRL Taxonomy Enhancement Project XBRL viewer released on December 5th 2006 http://www.sec.gov/spotlight/xbrl.htm http://www.sec.gov/spotlight/xbrl.htm New SEC Office of Interactive Disclosure created Advisory Committee on Improvements to Financial Reporting includes Delivering Financial Information Subcommittee Executive compensation XBRL project launching later this year Proxy XBRL Taxonomy under development ‘Round Table’ discussions (June 06, Oct 06, March 07) SEC XBRL Spotlight site http://www.sec.gov/spotlight/xbrl.htm http://www.sec.gov/spotlight/xbrl.htm

43. PricewaterhouseCoopers43 What should you do next?

44. PricewaterhouseCoopers44 What should you do next? Investigate/target internal compliance process areas Apply to your priority pervasive process problems Educate yourself and your team see Appendix for sources and case studies Attend Free XBRL Webinars XBRL conferences http://xbrl.us/events/Lists/allevents/all.aspx http://xbrl.us/events/Lists/allevents/all.aspx Talk with others who have implemented Develop Project plan and ROI assessment for a specific process Assess tooling needs, availability, fit Implement and assess cost/benefit realities

45. PricewaterhouseCoopers45 Thank you Mike Willis Partner, PricewaterhouseCoopers, LLP Founding Chairman, XBRL International mike.willis@us.pwc.com cell: 813 340 0932

46. 46 Appendix I

47. PricewaterhouseCoopers47 Relevant Resources IMA Suggested Reading: http://www.imanet.org/research_technology_reading.asphttp://www.imanet.org/research_technology_reading.asp SEC XBRL VFP SEC http://www.sec.gov/spotlight/xbrl.htmhttp://www.sec.gov/spotlight/xbrl.htm XBRL http://www.xbrl.org XBRL GL http://www.xbrl.org/GLTaxonomy/ http://www.xbrl.org/GLTaxonomy/ Tools http://www.xbrl.org/toolshttp://www.xbrl.org/tools Products and Services http://www.xbrl.org/productsandserviceshttp://www.xbrl.org/productsandservices XBRL US Site http://www.xbrl/ushttp://www.xbrl/us SEC VFP http://xbrl.org/us/frontend.aspx?clk=LK&val=27http://xbrl.org/us/frontend.aspx?clk=LK&val=27 SEC VFP Coaching http://www.xbrl.org/us/coaching/http://www.xbrl.org/us/coaching/ Resources http://xbrl.org/us/frontend.aspx?clk=LK&val=35http://xbrl.org/us/frontend.aspx?clk=LK&val=35 FEI XBRL http://www.fei.org/advocacy/xbrl.cfmhttp://www.fei.org/advocacy/xbrl.cfm CFO.com XBRL site http://www.cfo.com/guides/guide.cfm/8310234http://www.cfo.com/guides/guide.cfm/8310234

48. PricewaterhouseCoopers48 Suggested Reading Global Ledger Practices Guide for Study http://www.gl.iphix.net/http://www.gl.iphix.net/ ROI on XBRL: http://www.aicpa.org/pubs/jofa/jun2007/stantial.htm http://www.aicpa.org/pubs/jofa/jun2007/stantial.htm Hitachi Blogs: http://blog.hitachixbrl.com/2006/10/05/welcome/ http://blog.hitachixbrl.com/2007/01/16/the-entity-problem/ http://blog.hitachixbrl.com/2007/01/30/relationships-matter/ http://blog.hitachixbrl.com/2007/02/13/in-pursuit-of-process/ http://blog.hitachixbrl.com/2007/01/09/master-data-management-the-xbrl- way/http://blog.hitachixbrl.com/2007/01/09/master-data-management-the-xbrl- way/ http://blog.hitachixbrl.com/2006/12/08/adaptation-or-evolution-what-is-your- xbrl-strategy/http://blog.hitachixbrl.com/2006/12/08/adaptation-or-evolution-what-is-your- xbrl-strategy/ XBRL Ledger white paper: http://www.imanet.org/pdf/8xbrl.pdfhttp://www.imanet.org/pdf/8xbrl.pdf FFIEC White Paper: http://www.xbrl.org/us/us/FFIEC%20White%20Paper%2002Feb2006.pdf http://www.xbrl.org/us/us/FFIEC%20White%20Paper%2002Feb2006.pdf

49. PricewaterhouseCoopers49 Demonstrations Edgar-Online IMetric http://www.edgar-online.com http://www.edgar-online.com/products/imetrix.aspx Rivet Software Crossfire http://www.rivetsoftware.com http://www.rivetsoftware.com/content/index.cfm?fuseaction=sh owContent&contentID=195&navID=166http://www.rivetsoftware.com/content/index.cfm?fuseaction=sh owContent&contentID=195&navID=166 http://www.rivetsoftware.com/resources/files/CrossfireLaunch/ CrossfireAnalystReportCreation.htmhttp://www.rivetsoftware.com/resources/files/CrossfireLaunch/ CrossfireAnalystReportCreation.htm Google OneBox http://www.iphix.net/resources/nunavut.htm

50. PricewaterhouseCoopers50