Company Regulator Problem = Exchange of data between regulated entity and regulator Regulator solution = Use XML Schema to define terms for exchange. Regulator builds taxonomy using a (XML Schema) proprietary platform. XML Schema Company Regulator XML Schema Company Proprietary solution for Regulator Looks good to the regulator Regulator XML Schemas Regulator Company Proprietary solutions looks different to the companies and is a costly and complex model Regulator Previous Solution – “It’s About Me”

XBRL: Benefits to All Participants Company Regulator XBRL Internal Reporting Instructions 3 rd Party Interpretative Guidance Reporting Sources Regulations Interpretative Guidance Instructions Stds (FASB, IFRS) Audit Guidance Validation

Filling Out the Audit Supply Chain BUSINESS Investors Aggregators RegulatorsCreditorsLendersTaxWebsite Transaction Creation ERP G/L Packages CRM Orders A/P Delivery Customers Orders A/R Delivery 2-way Suppliers One way One way XBRL BUSINESS REPORTING (e-)Trx X12, UBL, CEFACT, OTHER XML XBRL GL Journal Taxonomy Detail Accounting recognition/ classification Intra system Detail to summary: DRILL UP

XBRL GL, From Entry to Reporting XBRL GL framework is a common language –From generic representations of individual documents triggering transactions Built from standardized blocks of resources, agents, events, documents, links to accounts, reports –Through trial balance –Through a consolidation process –Able to represent detailed or summarized information

The Building Blocks of XBRL GL Journal entries –Account, amount, date, description Parties/agents –Customers, vendors, employees Source documents –Document number, dates, file location Resources –Inventory, services, fixed assets, KPI Mappings to and between –Accounts, Classifications, XBRL reporting taxonomies J A S R M

“Three Level” Structure of XBRL GL accountingEntries entryHeader entryDetail GL Journal Batches Target and Source Application Creator Organization GL Journal Header Journal Identifiers Entered by Entry Date Posting Date GL Journal Detail Lines Detail Identifiers Line Number Amount Account XBRL Reference

Modular and Reusable/Generic Core has common elements, lays out the framework Jurisdictional add-ons Functional add-ons Industry add-ons Other add-ons One or many types of entry groupings One or more “entries” One or more “detail lines” per entry

XBRL GL Framework XBRL GL Core Business Facts “Tax”USJapanMulticurrency Palette Schema MUC US BUS GL Core Industry Specific Cash Management Insurance transactions TAF

“GL” versus “General Ledger”: Holds More

XBRL GL Can Represent The chart of accounts, representing both posting accounts and customers, vendors, or other items that may be assigned an account in an international sense of the word; Journal entries, both from subsystems and within the General Ledger or financial reporter; Document summaries, with generic representations of the information that is presented on standardized business documents; Descriptions of customers, vendors, employees and banks, either in connection with the chart of accounts (European style) or independently (US style); Descriptions of inventory items, performance metrics or other quantifiable items; Status documents, including listings of receivables still owing, payables yet owed, inventory in stock, as well as Standard accounting summaries such as trial balances, “general ledger”, source journals and other accounting-oriented summaries.

Benefits of XBRL GL Reduces the manual effort and/or costs of integration through a standard export format Standardized detailed output enable the participation of general ledger information in external systems (e.g. consolidation, continuous auditing, etc…) Through standardized data import, consumers of GL information can reduce effort and/or costs of moving data from one system to another.

Commercial Loan Monitoring Challenges People Monitoring is time consuming Acquired skill Lack of trained commercial lenders Priority & Focus Imminent vs. downstream risk New credit vs. risk management on existing book Cost challenges Expensive to monitor More expensive to monitor “soft assets”

Commercial Loan Monitoring Challenges Infrastructure Reporting on risk Reporting on progress Reporting on change Decision consistency Documenting decisions Compounded with geographic separation Information Sea of data Staleness of data

The Covarity Dashboard Solution Borrower exports financial documents directly from accounting system or tax package into the Covarity Dashboard solution Lender conducts low effort loan reviews, handling flagged exceptions and monitoring health of loan portfolio in real time Borrower (via browser) Covarity Dashboard hosted solution  Conduct loan reviews & monthly margin analysis  Handle flagged exceptions  Monitor loan portfolio  Upload financial documents  View financial metrics Internet Bank (via browser) Internet