1. SBR Extending the scope of reporting Meeting Austrian Delegation 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? 2Standard 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. 3Standard 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  investigation on application possibilities  first draft of business case (2) Accessment to become intended SBR partner  availability of a detailed project plan  availability of manpower and financial resources  vision of new reporting chain, including acceptance of chain partners  vision on rollout strategy 4Standard 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) 5Standard 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 6Standard 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 7Standard 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. 8Standard 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 9Standard Business Reporting Program A Netherlands governement intitiative