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Gerald TritesXBRL Canada

Standard Business Reporting (SBR) – Global Report

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Introduction

CPA Canada has recommended the Standard Business Reporting (SBR) model to the Government in pre-budget consultations in the past three years

The House of Commons Standing Committee on Finance picked up this recommendation in its annual report

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Introduction

The use of SBR is particularly useful for cutting the cost of compliance incurred by business

It is also consistent with the Open Data Initiative of which the government is a part

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SBR Overview Standard Business Reporting (SBR) is a group of

international initiatives based on XBRL and designed to reduce the business-to-government reporting burden

Started in The Netherlands in 2003, SBR was then adopted in Australia in 2006 and is currently being considered by many other countries including China, Brazil, UK, Belgium

Key features: ▫ Cross-government▫ Multi-agency and platform independent▫ Streamlines Multiple reports▫ Standards, including but not limited to XBRL, are enablers

Key focus: costs reduction for businesses

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XBRL Adoption Around the World G20 Outside the G20

Argentina Japan (SBR) United Arab Emirates Netherlands (SBR)(Audit)

Australia (SBR) Mexico (SBR) Belgium (SBR) Poland

Brazil (SBR) Russia Bermuda Romania

China (SBR) (Audit) Saudi Arabia Denmark (Audit) Singapore (SBR)

France South Africa Hong Kong Thailand (SBR)

Germany Korea Ireland Taiwan (SBR)

India (SBR) (Audit) Turkey Israel Spain

Indonesia United Kingdom (SBR)

Luxembourg Sweden

Ireland United States Malaysia (SBR) Switzerland

Italy European Union Finland

• BOLD: XBRL mandate(s) in production• Audit – Program in place to require independent assurance over XBRL

submissions. • GREEN – In Development with a voluntary program• SBR –“Standard Business Reporting” burden reduction effort converging disparate

agencies compliance processes via IFRS XBRL Taxonomy.

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SBR Overview

Streamline business-to-government reporting through SBR-enabled accounting/payroll software

Using SBR-enabled software will allow businesses to prepare and lodge key government forms directly from their software to SBR partner agencies

Single credentials – such as AUSKey in Australia More information: www.sbr.gov.au and www.sbr-

nl.nl

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Primary Aims of SBR – Where the Savings Are Use of standards to reduce cost to business Single language to report to government Harmonisation and reduction of reported data –

98% and 70%!!! Ability to attach meaning to business and financial

data Reporting data becomes a by-product of normal

business record keeping/accounting processes Have reports pre-filled in business software As far as possible – automate the reporting process

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Scope of Existing SBR Programs

The Netherlands▫3 agencies▫1.5 million businesses▫Reporting elements reduced from 200,000 to

4,500 (-98%) Australia

▫12 agencies▫2.1 million businesses▫Reporting elements reduced from 9,648 to 2,838

(-71%)

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Australian SBR Program

Went live in July 2010 Cost: AUD 170M The Commisioner of Taxation reported in his

annual report for 2014-15 that SBR use exceeded 15 million transactions for the first time, with estimated savings to business using SBR-enabled software of $400 million.

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Basic Components of SBR

DefinitionalTaxonomy

Messaging InfrastructureCore Services

Business Software

Government Agency

STANDARDIZED FORMAT

Web

ser

vice

s

Web

ser

vice

s

STANDARDIZED CONTENT

REGISTRATION AND ASSERTION

AUTHENTICATION TOKEN

AuthenticationAUSkey

ReportingTaxonomies

COMMON LANGUAGE

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Taxonomy

The SBR taxonomy has two main layers▫Definitional taxonomy▫Reporting taxonomies

Definitional – Dictionary of agreed terms that comprise the common language

Reporting – Structures for the exchange of data that use the terms defined in the Dictionary

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Information Classification A

A.1

A.2

B.1

B.2

…

Agency X

Report X.1

Report X.2

Agency Y Agency …

Report Y.1

Report Y.2

Definitional Taxonomy – Common Dictionary

Reporting Taxonomies

Define the concept once…

… re-use on many reportsAddress Wages & Salaries

Information Classification B

How the SBR Taxonomy Architecture Works

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Benefits of the SBR Taxonomy Architecture Each SBR Program develops its own taxonomy,

but they have the option to leverage the SBR Taxonomy Architecture used in most Programs – which saves time and resources

It is also an important governance tool and it facilitates harmonization

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Conclusions

SBR is a global reality Existing Programs are having a significant

impact▫Costs reductions▫Rationalization and simplification

New Programs are leveraging best practices and lessons learned and achieve results more quickly and with lower investment

SBR in Canada has the potential to significantly reduce compliance costs for businesses

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THANK YOU