Enhanced Business Reporting Consortium Releases Framework to Promote Greater Transparency in Corporate Reporting

    Washington, D.c. (ots/PRNewswire) -

    - Calls For Public Comments

    - Framework Addresses Capital Market Needs for Information About a Company's Opportunities, Risks, Strategies and Plans

    The Enhanced Business Reporting Consortium today announced that it has released its first version of a comprehensive information framework to help companies better communicate with their investors and other key audiences about business strategy and current and expected performance. The Consortium, better known as the EBRC, also called for public comments from the business reporting community on the framework.

    "During the last 10 years, many organizations have proposed new or improved reporting models-but none so far has succeeded in gaining recognition as a common, complete framework that would allow for consistent and relevant external reporting of key performance information," said Mike Krzus, Interim EBRC Executive Director. "The EBRC framework provides that model."

    "We want to hear from shareholders, directors, management and other stakeholders to ensure that we develop the best approach for providing the types of information that investors and others need," said Krzus.

    To make successful decisions, management and investors need information about the key elements of a company's business that are the sources of its value. These can be measured numerically through financial or non-financial key performance indicators or they may be qualitative factors such as business opportunities, risks, strategies and plans-all of which permit assessment of the quality, sustainability and variability of a company's cash flows and earnings.

    "Studies have found that only twenty-five percent of a company's market value can be attributed to accounting book value, with the remaining seventy-five percent based on an assessment of value created by intangibles such as strategy, product innovation, people and customer loyalty," said Robert Eccles, an advisor to the EBRC and former professor at Harvard Business School. "Unfortunately, only about one-third of the value drivers generally associated with the industry sectors surveyed are published in formal filings used by investors."

    "Enhanced Business Reporting can change the markets' focus on short-term earnings projections," said Eccles. "The over-emphasis of quarterly earnings will decline as companies report transparently on their key drivers of value creation. The long-term rewards will be tangible: a greater investor following, lower stock-price volatility and ultimately a more attractive cost of equity and debt."

    "We distribute this framework as an invitation for global collaboration," said Krzus. "We look forward to candid and spirited dialogue to build upon this foundation."

    The framework structure includes four broad categories-Business Landscape, Strategy, Competencies & Resources and Performance-and is available at www.ebr360.org. For the next 60 days, interested parties may send comments to comments@ebr360.org.

    About the Enhanced Business Reporting Consortium

    The Enhanced Business Reporting Consortium is a not-for-profit organization. Our public mission is: A consortium of stakeholders collaborating to improve the quality, integrity and transparency of information used for decision-making in a cost-effective, time-efficient manner.

    The Founding Members of the EBRC are: AICPA Center for Public Company Audit Firms; Grant Thornton LLP; Microsoft Corporation and PricewaterhouseCoopers LLP

    A diverse group of organizations have come together to make this endeavor a reality. The EBRC's Strategic Partners include:

@@start.t1@@      American Institute of Certified                          National Investor
      Public Accountants                                                Relations Institute
      Business Roundtable                                              Open Compliance and
                                                                                  Ethics Group
      Business Wire                                                        PR Newswire
      National Association of Corporate Directors        XBRL International

    Enhanced Business Reporting Framework Summary

    The Enhanced Business Reporting Framework promotes greater transparency of corporate strategy and performance. The Framework also provides structure for the type of narrative management discussion, e.g., MD&A in the U.S. and O&FR in the U.K., required in many countries. This structure makes it possible to create useful classifications, i.e., taxonomies for value drivers, performance measures and qualitative information. Specifically, the EBR Framework enables a more robust use of XBRL taxonomies. Ultimately, companies adopting the Framework will provide the investment community and other stakeholders the information they need to make better decisions. The complete Enhanced Business Reporting Framework is available at www.ebr360.org.

      Level 1                                      Level 2
      Business Landscape                    Overview
                                                        Technological change
                                                        Shareholder relations
                                                        Capital availability
      Strategy                                    Business model
                                                        Risk management
                                                        Environmental & social
                                                        Business portfolio
                                                        Resource allocation
                                                        Product life cycle
      Competencies & Resources          Key processes
                                                        Customer satisfaction
                                                        Supply chain
                                                        Intellectual property
                                                        Information & technology
                                                        Financial assets
                                                        Physical assets
      Performance                                Profitability

ots Originaltext: EBRC
Im Internet recherchierbar: http://www.presseportal.ch

CONTACT: Beth Gautier, +1-202-448-3156, beth.gautier@ebr360.org

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