CHAPTER THREE

Organising and collecting data

AS IS APPARENT WHEN ENTERTAINING THE DEMANDS of modern management and business reporting requirements, the organisation and collection of data are essential processes. This section explores associated elements, specifically:

• FASB codification and XBRL taxonomy;
• illustrative financial statements;
• data collection and XBRL for other standards, GRI and taxation, VAT;
• content analysis.

3.1 FASB CODIFICATION AND XBRL TAXONOMY

The Financial Accounting Standards Board is another important institution associated with the IFRS and thereby is connected with XBRL, too. It is beneficial, therefore, to provide preliminary information about this entity. More details can be found via the related home page at www.fasb.org (Figure 3.1).

Figure 3.1 The Financial Accounting Standards Board.

Note: This screenshot, and related information in this section, is reproduced by permission of the Financial Accounting Foundation.

Introduction to the FASB

Since 1973, the FASB has been the designated private sector organisation for establishing financial accounting standards that govern the preparation of financial reports by non-governmental entities. Those standards are officially recognised as authoritative by the SEC (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because decisions about the allocation of resources rely heavily on credible, concise and understandable financial information.

The SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the Commission's policy has been to rely on the private sector for this function to the extent that the private sector demonstrates the ability to fulfil the responsibility in the public interest.

The mission of the FASB

The FASB's mission is to establish and improve standards of financial accounting and reporting that foster financial reporting by non-governmental entities which provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views and is subject to oversight by the Financial Accounting Foundation's board of trustees.

Independent structure of the FASB

The FASB is part of a structure that is independent of all other business and professional organisations. That structure includes:

• the Financial Accounting Foundation (Foundation);
• the Financial Accounting Standards Board (FASB);
• the Financial Accounting Standards Advisory Council (FASAC);
• the Governmental Accounting Standards Board (GASB);
• the Governmental Accounting Standards Advisory Council (GASAC).

A summary of each is provided next.

Financial Accounting Foundation (FAF)

The Foundation is the independent, private sector organisation responsible for the oversight, administration and finances of the FASB, the GASB, and their advisory councils FASAC and GASAC. The Foundation's primary duties include protecting the independence and integrity of the standards-setting process and appointing members of the FASB, GASB, FASAC and GASAC. Its website includes a description of the Foundation, a list of and background information about members of the board of trustees, and other useful information.

Financial Accounting Standards Board (FASB)

In 1973, the Foundation set up the FASB to establish and improve standards of financial accounting and reporting for non-governmental entities. Consistent with that mission, the FASB maintains the FASB Accounting Standards Codification (Accounting Standards Codification) which represents the source of authoritative standards of accounting and reporting, other than those issued by the SEC, recognised by the FASB to be applied by non-governmental entities.

Financial Accounting Standards Advisory Council (FASAC)

The primary function of FASAC is to advise the FASB on technical issues on the board's agenda, possible new agenda items, project priorities, procedural matters that may require the attention of the FASB, and other matters requested by the FASB or its chairman. At the time of writing, the Council has more than 30 members who represent a broad cross section of the FASB's constituency.

Governmental Accounting Standards Board (GASB)

In 1984, the Foundation established the GASB to set standards of financial accounting and reporting for state and local governmental units. As with the FASB, the Foundation is responsible for selecting its members, ensuring adequate funding and exercising general oversight.

Governmental Accounting Standards Advisory Council (GASAC)

The GASAC has responsibility for advising the GASB on technical issues on the board's agenda, project priorities, matters likely to require the attention of the GASB, and such other matters requested by the GASB or its chairman.

FASB members and staff

The seven, full-time members of the FASB are appointed by the Foundation's board of trustees and may serve up to two five-year terms. A 60-plus person staff supports the board. Board members and staff each have a concern for investors, other users and the public interest in matters of financial accounting and reporting and collectively have knowledge and experience in investing, accounting, finance, business, accounting education and research. To ensure the independence of board members and staff, the Foundation has implemented policies about personal investments and other personal activities that are designed to prevent potential conflicts of interest.

FASB standards-setting process

The FASB accomplishes its mission through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views, and is subject to oversight by the board of trustees.

The Rules of Procedure describe the FASB's operating procedures, including the due process activities that are to be open to public participation or observation to provide transparency in the standards-setting process. In particular, the Rules of Procedure describe:

• the FASB mission, how the mission is accomplished, and related principles that guide the board's standards-setting activities;
• the organisation in which the FASB operates;
• the operating procedures of the FASB, including the responsibilities of the chairman, the composition of the FASB technical staff, the role of advisory groups including the Emerging Issues Task Force, and the role of public forums in due process;
• various forms of communications, including the form and content of accounting standards updates, exposure drafts, and concepts statements;
• protocols for meetings of the FASB and voting requirements;
• rules governing public announcements and the kinds of information made broadly available to the public.

A high-level overview of the standards-setting process as established by the Rules of Procedure follows. The nature and extent of the board's specific research and outreach activities will vary from project to project, depending on the nature and scope of the reporting issues involved.

Thomson Reuters – GAAP Reporter on Checkpoint platform

An announcement in 2011 (see thomsonreuters.com/content/press_room/tax/461863) by Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, indicated that GAAP Reporter equips finance and accounting professionals to quickly interpret FASB codification.

More specifically, Thomson Reuters has released GAAP Reporter on Checkpoint, its industry-leading, online tax and accounting information platform. The new GAAP Reporter solution provides US finance and accounting professionals with industry-leading insights and analyses, so that they can confidently prepare company financial statements in compliance with the FASB's GAAP.

‘The GAAP Reporter, authored by Thomson Reuters' expert accounting analysts, is designed to help professionals interpret the standards and apply them to real-world situations,' said Bruce Safford, senior director of Checkpoint Content Operations, Thomson Reuters. ‘Also, as FASB continues to issue new standards at a rapid pace, codification, guidance, and tools are quickly updated online in the GAAP Reporter, so that professionals are fully equipped to quickly adopt new practices and make decisions in their dynamic industry.Key features include:

• content organised to mirror the section-by-section structure of the FASB's codification to provide information in the most intuitive manner;
• authoritative, reliable, decision-making guidance, including:
  • common practices and pitfalls in applying the codification;
  • illustrations of required disclosures;
  • examples of how best to perform the calculations;
  • SEC comment letters;
  • differences between IFRS and US GAAP;
• recent or pending updates to the codification to assist in current and future decision-making activities;
• efficient tools such as checklists, client letters and memos to further streamline compliance activities;
• multiple navigation options to link between the codification, analysis and tools to allow the professional to create a personalised workflow experience that best reflects the way they work.

Tax, accounting and finance professionals in accounting firms, corporations, law firms and the government sector have relied on Checkpoint since 1997 to help navigate a highly complex and ever-changing business and compliance landscape. For more information on Checkpoint from Thomson Reuters, visit yourcheckpoint.thomsonreuters.com.

US GAAP Financial Reporting Taxonomy

The 2011 US GAAP Financial Reporting Taxonomy is available at www.fasb.org.

The 2011 Taxonomy contains updates for accounting standards and other improvements since the 2009 Taxonomy as used by issuers filing with the SEC. The FASB issued proposed improvements to the taxonomy in the autumn of 2010, allowing users of the taxonomy to provide feedback on the updates and the opportunity to become familiar with and to incorporate new element names for their filings.

In addition to the entire 2011 US GAAP Financial Reporting Taxonomy, industry-specific links provide filtered views to aid taxonomy navigation, as follows:

• Commercial and Industrial Filtered View (most companies);
• Banking and Savings Institutions Filtered View;
• Brokers and Dealers Filtered View;
• Insurance Filtered View;
• Real Estate Filtered View;
• Schedule of Investments Filtered View.

A view of the SEC Document and Entity Information Taxonomy is also available from the FASB.

3.2 ILLUSTRATIVE FINANCIAL STATEMENTS

All the large accounting firms provide model financial statements for an easy way to start implementing IFRS. In fact, when the first IFRS XBRL taxonomy was developed, it was based on a comparison of the various model financial statements available, thus capturing best practice for presenting financial information using IFRS.

These illustrative statements usually contain the annual financial report and consolidated financial statements of a fictitious group based on IFRS requirements cross referenced to a commentary section. Besides accounting disclosure requirements, the following information is documented:

• general company information;
• financial review by management;
• independent auditor's report;
• consolidated income statement;
• consolidated balance sheet;
• consolidated statement of changes in equity;
• consolidated cash flow statement.

In addition, the following items explain the basis of preparation of the financial statements:

• corporate information and basis of preparation;
• changes in accounting policies;
• significant accounting judgments and estimates;
• summary of significant accounting policies;
• adoption of IFRS during the year.

Generally, this is followed by a description of significant entity and segment information, as well as a detailed account analysis of all assets and liabilities. In addition, references are made to the appropriate IFRS.

What follows is a cursory overview of illustrative financial statements made available by four global accounting firms:

• KPMG
• Ernst & Young
• Deloitte
• PricewaterhouseCoopers

These illustrative financial statements are indicative as to what is available to assist accounting professionals, especially the preparers of financial reports. This section does not, therefore, constitute the sum of what is available overall in this regard, nor for each of the four firms. Even so, each of these firms, and their related publications, offer a rich source of information related to the preparation of financial statements.

KPMG

KPMG published Illustrative financial statements to assist preparers in preparing, and auditors in auditing, financial statements in accordance with IFRS. It is available at www.kpmg.com/global/en/issuesandinsights/articlespublications/ifrs-illustrative-financial-statements/pages/ifrs-illustrative-financial-statements-2011.aspx.

This publication reflects IFRS in issue at 1 September 2011 that are required to be applied by an entity with an annual period beginning on 1 January 2011 (‘currently effective' requirements). IFRS that are effective for annual periods beginning after 1 January 2011 (‘forthcoming' requirements) have not been adopted early in preparing these illustrative financial statements. However, example disclosures for the early adoption of certain new standards and amendments are included in the appendices to these illustrative financial statements.

The table of contents of this 252-page publication is reproduced by permission of KPMG, as follows:

• Consolidated financial statements
  • Consolidated statement of financial position
  • Consolidated statement of comprehensive income – single-statement approach
  • Consolidated statement of changes in equity
  • Consolidated statement of cash flows
  • Notes to the consolidated financial statements
• Appendices
  • Consolidated income statement and consolidated statement of comprehensive income
  • Consolidated statement of cash flows (direct method)
  • Example disclosures for entities that early adopt Presentation of Items of Other Comprehensive Income (Amendments to IAS 1 Presentation of Financial Statements)
  • Example disclosures for entities that early adopt IFRS 9 Financial Instruments (October 2010)
  • Example disclosures for entities that require going concern disclosures
  • Example disclosures for distribution of non-cash assets to owners
  • Example disclosures for entities that early adopt Deferred Tax: Recovery of Underlying Assets – Amendments to IAS 12
  • Example disclosures for government-related entities under revised IAS 24 Related Party Disclosures
  • Example disclosures for entities with a service concession arrangement
• Technical Guide

Figure 3.2 Illustrative financial statements: an explanation. Reproduced by permission of KPMG.

Figure 3.2 provides an indication as to how information related to the illustrative financial statements is presented.

Ernst & Young

Good Group (International) Limited -- Illustrative Interim Condensed Consolidated Financial Statements for the period ending June 30, 2012 -- Based on International Financial Reporting Standards in issue at March 31, 2012 was authored by EYGM Limited, 2012, and is reprinted with permission. EYGM Limited is the owner of all copyrighted material contained herein and this material may not be reprinted without express permission from EYGM Limited. This publication is available at www.ey.com/GL/en/Issues/IFRS/Publications. It contains an illustrative set of consolidated financial statements of Good Group (International) Limited and subsidiaries (‘the Group').

Contents of this 40-page publication are as follows:

• Abbreviations and key
• Introduction
• Report on review of interim condensed consolidated financial statements to the shareholders of Good Group (International) Limited
• Interim consolidated income statement
• Interim consolidated statement of comprehensive income
• Interim consolidated statement of financial position
• Interim consolidated statement of changes in equity
• Interim consolidated statement of cash flows
• Notes to the interim condensed consolidated financial statements
  • Corporate information
  • Basis of preparation and accounting policies
  • Seasonality of operations
  • Business combinations
  • Operating segment information
  • Impairments
  • Income tax
  • Discontinued operation
  • Components of other comprehensive income
  • Property, plant and equipment
  • Inventories
  • Other financial assets and financial liabilities
  • Cash and cash equivalents
  • Reversal of restructuring provision
  • Share-based payment
  • Commitments and contingencies
  • Related party transactions
  • Events after the reporting period
  • Dividends paid and proposed
• Appendix 1 – Interim consolidated income statement (example of expenses disclosed by nature)
• Appendix 2 – Interim consolidated statement of cash flows (direct method)

Figure 3.3 Consolidated Financial Statements: an explanation.

Figure 3.3 provides an indication as to how information related to the illustrative financial statements is presented.

Deloitte

International Financial Reporting Standards – Model financial statements 2011 is reproduced by permission of Deloitte, and is available at www.iasplus.com/fs/fs.htm.

The contents of this 132-page publication are as follows:

• Consolidated statement of comprehensive income
  • Alt 1 – Single statement presentation, with expenses analysed by function
  • Alt 2 – Presentation as two statements, with expenses analysed by nature
• Consolidated statement of financial position
• Consolidated statement of changes in equity
• Consolidated statement of cash flows
  • Alt 1 – Direct method of reporting cash flows from operating activities
  • Alt 2 – Indirect method of reporting cash flows from operating activities
• Notes to the consolidated financial statements
• Auditor's report

PricewaterhouseCoopers

Illustrative IFRS consolidated financial statements, prepared by Pricewaterhouse Coopers (PwC) in 2011, is available at www.pwc.com/gx/en/ifrs-reporting/ifrs-illustrative-financial-statements-pwc-publications.jhtml.

The table of contents of this 154-page publication is reproduced with permission from PricewaterhouseCoopers LLP, as follows:

• Financial statements
• Notes to the consolidated financial statements:
  • General information
  • Summary of significant accounting policies:
    • Basis of preparation
    • Consolidation
    • Segment reporting
    • Foreign currency translation
    • Property, plant and equipment
    • Intangible assets
    • Impairment of non-financial assets
    • Non-current assets (or disposal groups) held for sale
    • Financial assets
    • Offsetting financial instruments
    • Impairment of financial assets
    • Derivative financial instruments and hedging activities
    • Inventories
    • Trade receivables
    • Cash and cash equivalents
    • Share capital
    • Trade payables
    • Borrowings
    • Borrowing costs
    • Compound financial instruments
    • Current and deferred income tax
    • Employee benefits
    • Share-based payments
    • Provisions
    • Revenue recognition
    • Interest income
    • Dividend income
    • Leases
    • Dividend distribution
    • Exceptional items
  • Financial risk management
  • Critical accounting estimates and judgements
  • Segment information
  • Exceptional items
  • Other income
  • Other (losses)/gains – net
  • Expenses by nature
  • Employee benefit expense
  • Finance income and costs
  • Investments in associates
  • Income tax expense
  • Earnings per share
  • Net foreign exchange gains/(losses)
  • Property, plant and equipment
  • Intangible assets
  • Financial instruments by category
  • Credit quality of financial assets
  • Available-for-sale financial assets
  • Derivative financial instruments
  • Trade and other receivables
  • Inventories
  • Financial assets at fair value through profit or loss
  • Cash and cash equivalents
  • Non-current assets held for sale and discontinued operations
  • Share capital and premium
  • Share-based payments
  • Retained earnings
  • Other reserves
  • Trade and other payables
  • Borrowings
  • Deferred income tax
  • Retirement benefit obligations
  • Provisions for other liabilities and charges
  • Dividends per share
  • Cash generated from operations
  • Contingencies
  • Commitments
  • Business combinations
  • Transactions with non-controlling interests
  • Related-party transactions
  • Events after the reporting period
• Auditors' report
• Appendices
  • Appendix I – Operating and financial review; management commentary
  • Appendix II – Alternative presentation
    • Consolidated statement of cash flows – direct method
    • Consolidated statement of comprehensive income – single statement, showing expenses by function
  • Appendix III – Areas not illustrated in financial statements of IFRS GAAP Plc
    • Biological assets
    • Construction contracts
    • Oil and gas exploration assets
    • Financial guarantee contracts
    • Leases: accounting by lessor
    • Government grants
    • Joint ventures
    • Revenue recognition: multiple-element arrangements
    • Customer loyalty programmes
    • Put option arrangements
    • Foreign currency translations
    • Share-based payments
  • Appendix IV – New standards and amendments
  • Appendix V – IFRS 9, ‘Financial instruments'
  • Appendix VI – IFRS 10, Consolidated financial statements'; IFRS 11, ‘Joint arrangements'; IFRS 12, ‘Disclosure of interests in other entities'
  • Appendix VII – IFRS 13, ‘Fair value measurement'
  • Appendix VIII – First-time adoption of IFRS

3.3 XBRL FOR INTEGRATED REPORTING

Global Reporting Initiative (GRI)

The world is growing together in many ways, a process aided by increasing Internet connectivity and access to new ideas, as well as ways to improve lifestyles internationally. Concerned citizens, mainly located in developed countries, as well as disaffected and poorly treated people in developing countries, more and more are united in the commendable quest for more equality in such measures as wealth distribution. Increasingly, interest in this type of topic has led many people, primarily those in developed nations, to seek more from their local societies, suppliers and governments, as well as from the so-called global village in which all of us reside.

The outcome of this well-meaning and well-placed disquiet is a call for greater corporate accountability, as well as for more meaningful business reporting. This has fostered a phase-over from conventional business reporting, especially that which is heavily dependent on inanimate numbers, to that which is called sustainability reporting, in which attention is paid to topics that matter most, and progressively more, to various stakeholders, including vocal and active consumers.

Images and related information in this section is reproduced by permission of the Stichting Global Reporting Initiative (www.globalreporting.org). This organiaation has a significant role to play in satisfying the requests and demands for better reporting by business and organisations of all types. GRI places great emphasis on people-related information, and particularly to the use of child labour, and is good at defining supply chains, as well as dealing with product tracking.

Essentially, GRI produces one of the world's most prevalent standards for sustainability reporting – also known as ecological footprint reporting, environmental social governance (ESG) reporting, triple bottom line (TBL) reporting, and corporate social responsibility (CSR) reporting. Sustainability reporting is a form of value reporting where an organisation publicly communicates its economic, environmental and social performance. GRI seeks to make sustainability reporting by all organisations as routine as, and comparable to, financial reporting.

GRI guidelines are widely used – more than 1,500 organisations from 60 countries use them to produce their sustainability reports. GRI guidelines apply to corporate businesses, public agencies, smaller enterprises, NGOs, industry groups and others. For municipal governments, generally, they have been subsumed by similar guidelines from the UN ICLEI. Originally, this was the International Council for Local Environmental Initiatives, now referred to as Local Governments for Sustainability.

There are several efforts to integrate business reporting and not just focus on financial numbers. The following groups and organisations are involved:

• Investors
  • European Federation of Financial Analysts Societies
  • International Corporate Governance Network
  • Pension funds
  • Social Investment Fora
• Business Associations
  • International Chamber of Commerce
  • World Business Council for Sustainable Development
• Inter-Governmental Organizations
  • The UN Environment Programme Finance Initiative,
• The UN Global Compact and their Principles for Responsible Investment
  • UN Environment Programme Green Economy Initiative
  • UN Conference on Trade and Development
  • World Bank Group
  • Regulators and Standard Setters
  • International Accounting Standards Board
  • International Auditing and Assurance Standards Board
  • International Federation of Accountants
  • International Organization of Securities Commissions
  • Accounting community
• Major accounting bodies
• Global accounting firms
• Multi-stakeholder groups and NGOs
  • AccountAbility
  • Accounting for Sustainability
  • The Aspen Institute
  • European Laboratory on Valuing Non-financial Performance
  • Global Reporting Initiative
  • Tomorrow's Company
  • WWF
• Academics
  • European Academy of Business in Society
  • Centre for Social and Environmental Accounting Research,
  • The University of St Andrews International Association for Accounting Education & Research
  • Harvard Business School

GRI goes digital with XBRL

Images and related information in this section are reproduced by permission of the Stichting Global Reporting Initiative.

Due to the growing use of digital reporting tools and increased demand from sustainability reporters, GRI saw the need to provide sustainability reporters with more technical tools and support. In June 2011, GRI announced the start of a project to help make sustainability reports more useful for assorted stakeholders, especially investors. GRI's XBRL project recruited a strong team of experts to serve as preliminary reviewers of the GRI Taxonomy and its supporting documents. In March 2012, GRI announced the GRI Taxonomy , developed in collaboration with Deloitte.

This is one of the first XBRL taxonomies for sustainability reporting and it is a significant event. The GRI Taxonomy will help investors, auditors and analysts to access and compare information in sustainability reports faster and more simply, without the need for excessive manual work. Clearly, those outcomes are not achievable without XBRL, as Figure 3.4 illustrates, as it identifies the widespread use of XBRL, particularly by regulators worldwide.

Figure 3.4 XBRL: a global reporting language.

Source: GRI Taxonomy Launch – March 2012.

What is the GRI Taxonomy?

An XBRL taxonomy is an industry-specific categorisation scheme that defines and ‘tags' data in relation to its purpose, framework or outline. It enables users to uniquely tag and identify individual detailed reporting elements which can be easily shared electronically. In the case of the GRI Taxonomy, data can be tagged following the GRI guidelines.

 How does the GRI Taxonomy help?

The new GRI Taxonomy enables organisations to tag their sustainability data in reports. This will help report users – including regulators, investors and analysts – to find and analyse sustainability information. Organisations can benefit from a well-defined, structured format for collecting and disseminating sustainability information. It enables reporters, analysts, regulators and others to exchange sustainability data electronically and to inform stakeholders with consistent and high-quality information.

GRI Taxonomy – details

Figure 3.5 provides an indication as to how the GRI Taxonomy appears from a tagging perspective.

Figure 3.5 GRI Taxonomy tagging.

Source: Global Reporting Initiative – files connected with the GRI Taxonomy Launch – March 2012.

Figure 3.6 Energy usage reporting.

Source: GRI Taxonomy Launch – March 2012.

A more specific example is given in Figure 3.6, focusing on energy usage. Note the conversion elements on the far right-hand side of the table.

Figure 3.7 Interconnections between key components of the sustainability reporting process.

Source: Global Reporting Initiative GRI Taxonomy Implementation Guide 2012.

This level of information was required in the development of the GRI Taxonomy. There was also a need to review other aspects that sustainability reporting is expected to cover. Figure 3.7, for instance, provides an overview of the interconnections between key components of the sustainability reporting process that XBRL now facilitates, as well as how these link with the objectives of sustainable reporting. Of particular importance in this figure is the Disclosure on Management Approach and Performance Indicators, specifically, Economic, Environmental and Social, being key components supporting the increasing need for improved business reporting. All of these elements feed into the process by which the GRI Taxonomy was determined.

Figure 3.8 Size of the GRI Taxonomy.

Source: GRI Taxonomy Launch – March 2012.

Figure 3.8 indicates the size of the GRI Taxonomy. Remarkably, the overall number is rather small, especially when considering that this covers all the requirements identified in the GRI sustainability reporting framework.

Figure 3.9 The GRI Taxonomy: an example.

Source: GRI Taxonomy Launch – March 2012.

What follows in Figure 3.9 is more detail on the GRI Taxonomy, as per a specific example connecting directly to the sustainability reporting framework. Note the nested approach to the human rights elements in the table on the right-hand side

Figure 3.10 Better business reporting.

Source: GRI Taxonomy Launch – March 2012.

Certainly, the overall impact of the significant GRI Taxonomy project is better business reporting, captured in Figure 3.10. With data templates, as well as clarity of definitions, automatic report generation is made possible. Naturally, as indicated next, this leads to timely, reliable and comparable data.

Sustainability Reporting Guidelines

GRI's G3 Sustainability Reporting Guidelines offer an easy way to access the principal and standard indicators that make up a comprehensive sustainability report, as summarised next:

• Defining Report Content
  • Defining Report Content
  • Reporting Guidance for Defining Content
  • Materiality
  • Stakeholder Inclusiveness
  • Sustainability Context
  • Completeness
• Reporting Principles for Defining Quality
  • Reporting Principles for Defining Quality
  • Balance
  • Comparability
  • Accuracy
  • Timelines
  • Clarity
  • Reliability
• Reporting Guidance for Boundary Setting
• Standard Disclosures
  • Standard Disclosures
  • Management Approach and Performance Indicators
  • Guidance for using Indicators

See www.globalreporting.org/reporting/guidelines-online/Pages/default.aspx for more details.

Integrated reporting

In addition to the preceding information, there is excellent information available in relation to integrated reporting:

• IIRC's Reporting Framework and GRI's Reporting Guidelines.

See www.globalreporting.org/information/current-priorities/integrated-reporting/Pages/default.aspx for more details.

Note that greater focus is placed on integrated reporting in Part IV of this book.

GRI Report – Coca-Cola

It is appropriate, beneficial and instructive to see an example of a GRI report. The 95-page report on the Coca-Cola Company is a companion to the 2010/2011 Sustainability Report and was released on 29 December 2011 (available at www.thecoca-colacompany.com/citizenship/gri_index.html).

In relation to this report, as on the website:

This year, in 2011, The Coca-Cola Company has set out to report against the Key Performance Indicators (KPIs) that measure economic, environmental and social performance. We have done so within the scope of our Company's wholly owned operations. Where we have reported information on behalf of the Coca-Cola system (The Coca-Cola Company and our bottling partners), we have flagged this information within the body of the text.

For 2011, and the 2010/2011 Sustainability Report specifically, our Company has self-declared a grade B+ against the GRI G3.1 Guidelines. This year's Sustainability Report has also received ­verification by a third-party external verification agency, FIRA Sustainability BV. Their verification is evidenced by a ‘+' sign next to our grade B, which reflects their verification and approval of our tracking systems.

The KPIs against which the Coca-Cola Company reported appear on the GRI Report pages dedicated to the following topics:

• Strategy and Analysis;
• Organizational Profile;
• Report Parameters;
• Governance, Commitments and Engagement;
• Environmental;
• Human Rights;
• Product Responsibility;
• Economic;
• Labor Practices and Decent Work;
• Society.

In addition, there are the following sections:

• Overview of Sustainability Initiatives;
• Performance Highlights;
• About Our Reporting.

CorporateRegister.com

It is appropriate to follow the preceding section with one that underlines the growing importance of corporate responsibility. Specifically, there is a service provided by CorporateRegister.com (www.corporateregister.com) by which to access non-financial reports.

CorporateRegister.com is the global corporate responsibility (CR) resources website and hosts the world's most comprehensive directory of corporate non-financial reporting, profiling more than 38,000 reports across 8,770 companies in 172 countries. It strives to maintain the quality of its site and services in order to advance CR globally. Current services include data access, distribution, site profiles, and benchmarking and best practice initiatives.

The site is a delightful and rich source of CR information, as shown in the following list of services available:

• Data Access
  • Personal Account (free)
  • Professional Account (upgrade)
  • Academic Account (upgrade)
• Alerts
  • VideoReportAlert
  • ReportAlert
  • EventAlert
  • CR News
  • Hard-Copy Mailings
• Site Profiles
  • Companies & Reports (free)
  • PriorityReporter (upgrade)
  • ReportingPartner (free)
  • PriorityReportingPartner (upgrade)
• Benchmarking & Best Practice
  • CR Reporting Awards (CRRA)
  • Expert Reviews
  • Publications

3.4 CONTENT ANALYSIS

That data is collected, analysed and presented in business reporting is apparent from the preceding sections as well as all other parts of this book. An additional consideration, however, is the benefit that can be gained from the analysis of content, a burgeoning dimension of modern life in every way.

Basically, it is online software to support an integrated system for standards development, implementation and stakeholder engagement.

Addressing the increasing problems of content management, this section highlights two providers of related services:

• Collaborase;
• Attensity.

Collaborase

Consider Collaborase, very much the catalyst for, and future of, collaborative content development in supporting interactive and inclusive standard-setting activities. It is an online platform powered by Interactive Leader. Collaborase can be used to facilitate, develop and engage others. Basically, it is online software to support an integrated system for standards development, implementation and stakeholder engagement. See www.interactiveleader.com and collaborase.com.

Development and management of a user's work through Collaborase means that the user will have a centralised and accessible, transparent, fully auditable and interactive process for developing and managing its work and will minimise the need for extensive email and word document exchanges on drafting and work management. In addition, as a dynamic online platform, the work becomes ‘living documents', enabling continuous development and sharing of content and thereby building a valuable network.

The Climate Disclosure Standards Board (CDSB, www.cdsb.net) is using Collaborase and has its own workspace supported by Deloitte, Ernst & Young, Grant Thornton, KPMG and PwC. CDSB is using Collaborase to:

• develop the CDSB Climate Change Reporting Framework (CCRF) – the full framework is online, including section-by-section requirements, guidance, references and supporting rationale for technical and process-related issues so that users better understand why and how the CCRF has developed. Users can provide comments related to usage of the CCRF as well as offer recommendations for improvements. Users can also ask questions and engage in online forums;
• develop Climate Change Reporting Language, an online workspace for the global development of XBRL carbon taxonomy;
• provide resources to help CDSB members, partners and regulators;
• provide an efficient and accountable approach to managing CDSB's work and development plans.

Collaborase, as suggested, is the catalyst for collaboration and can assist anyone who is responsible for content products (documents). It is based on the philosophy that getting people actively involved in the production of standards, policies, regulations, processes and other structured knowledge documents is critical in a fast-paced world where information is power and where the pen truly is mightier than the sword. The Internet has empowered people the world over to engage, create, inform and enable. Collaborase is designed to foster a new world, one in which everyone is a potential contributor.

Attensity

Attensity (www.attensity.com) provides text analytics software for customer experience management (CEM). Attensity's software applications extract facts, relationships and sentiment from unstructured data, which comprise approximately 85 per cent of the information companies store electronically.

The software uses natural language processing technology to address collective intelligence in social media and forums; the voice of the customer in surveys and emails; social customer relationship management (social CRM); e-services; research and e-discovery; risk and compliance; and intelligence analysis.

Corporate customers that use the Attensity Analyze and Attensity Respond products to drive business decisions include Airbus, Charles Schwab, Citigroup, HP (Hewlett-Packard), JetBlue, Lloyds Banking Group, Safeway, Siemens, TiVo, Travelocity, Unilever, Walgreens, Wells Fargo and Whirlpool. US government customers include the Federal Bureau of Investigation, the National Security Agency and the Defense Intelligence Agency.

Attensity delivers an integrated suite of CEM applications to meet the demands of a new breed of empowered customers. Its solutions are powered by semantic technologies that allow organisations to listen, analyse, relate and act on multi-channel customer conversations. As a result, customers experience positive one-on-one interactions with the company, which improves loyalty and satisfaction at a reasonable cost.

Attensity has created a suite of commercial applications that draws upon the broadest spectrum of natural language processing technology and Web 3.0 semantic technologies. Specifically designed to meet the needs of end users, Attensity business applications inform business processes through the unparalleled accuracy of analytic engines and the intuitive presentation of resulting information.

‘This is a significant move within the content technologies industry,' said Sue Feldman, research vice-president for search and discovery technologies at IDC (International Data Corporation). ‘The next sea change in computing will come from combining information access with workflow, information management, and better interaction design. In providing more comprehensive business applications for unstructured data, Attensity recognizes companies' increasing need for insight into customer feedback and interaction, as well as the ability to simply access relevant content and data.'

Attensity applications can help to:

• quickly and accurately resolve customer support issues by sending the right information to customers automatically, and by giving customer support representatives guided escalation paths and accurate information. This results in customer satisfaction and loyalty, higher call resolution rates and lower overall support costs;
• see potential problems before they become big problems;
• access information from any source and in any language to enable more accurate research and analysis;
• improve compliance and governance efforts, helping to ensure that accurate, legally acceptable information is shared;
• increase customer satisfaction and retention;
• improve the efficiency and accuracy of research;
• deliver powerful insights about how a business is operating and where it should go in the future.