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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:
    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
    NASDAQ
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
                                   Competition
                                   Customers
                                   Technological change
                                   Shareholder relations
                                   Capital availability
                                   Legal
                                   Political
                                   Regulatory
    Strategy                       Business model
                                   Organization
                                   Governance
                                   Risk management
                                   Environmental & social
                                   Business portfolio
                                   Resource allocation
                                   Product life cycle
    Competencies & Resources       Key processes
                                   Customer satisfaction
                                   People
                                   Innovation
                                   Supply chain
                                   Intellectual property
                                   Information & technology
                                   Financial assets
                                   Physical assets
    Performance                    Profitability
                                   Liquidity
                                   Operating
                                   Segment

Contact:

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