Clarity Systems
Briefing to FEI CFIT
Mark Nashman
President & CTO
mnashman@claritysystems.com
416-250-5500 ext. 407
Louis Matherne
Director, XBRL Services
lmatherne@claritysystems.com
212-336-0452
Agenda
•
Clarity Systems Overview
•
Clarity FSR
•
Unified Financial Governance Solution
o Automated External Reporting
o Integrated XBRL
•
Demonstration
•
Questions & Answers
2
Clarity Systems
Founded
1995
Focus
Focus on CPM & Financial Governance
Solutions
Clarity 6 & Clarity FSR
Customers
Fortune 1000 – across all industries
Users
40,000+ users
Growth
40% + average annual growth rate
Stability
No debt. No V.C. Privately held
3
Unified Solutions
CPM
Clarity 6.5
Financial Governance
FSR 6.5
Budgeting Forecasting Planning
Automated External Reporting
Financial Consolidations
Reporting & Analytics
Regulatory Reporting
Financial Modeling
XBRL
Financial Allocations
GAAP to IFRS Conversion
Profitability Modeling
Scorecards Dashboards
Enterprise Risk Management
CSR Reporting
Strategy Maps
• Single Technology
• Single Installation
• Single User Interface
• Single Training Program
• Single Upgrade Path
• Unified Licensing Model
4
What the Analysts are Saying…
Clarity named “Cool Vendor”
Gartner Cool Vendors in Risk Management and Compliance
March 19, 2009
Clarity named “Visionary”
Gartner Magic Quadrant for CPM Suites
December 19, 2008
“Clarity Systems has a differentiated capability to produce full
regulatory filings as well as strong XBRL tools.”
Source: The Forrester Wave, October 2007
5
Clarity FSR
Automated External Reporting
The Last Mile in Financial Reporting
The Last Mile
Planning
Modeling
Budgeting
Forecasting
Consolidation
Reporting
Board Book
10Q, 10K
Annual Repo
Prospectus
• Manual processes dominate “The Last Mile”
– Extensive use of MS-Word and MS-Excel, shared via e-mail
– Data accuracy issues
– Collaboration is difficult
– No internal controls
– No audit trail
– High degree of risk
– Manual process is repeated each reporting period
7
Clarity FSR – Improving The Last Mile
• Automated method to produce statutory, regulatory and
internal reports
– 10K, 10Q, 8K, MD&A, Annual, Board Book, Prospectus, Flash
or Management
• Clarity FSR key features:
– Dynamically driven from a central database
– Leverage the formatting capabilities of MS-Word and the
calculation features of MS-Excel
– Collaborative environment
– Security driven access with full audit trail
– Workflow for report reviews and approvals
8
Clarity FSR – How it Works
Data Sources
ERP
Consolidations
Relational
Financial
Information
OLAP
•
••
••
••
•
•
•
••
••
•
•
•
Title Page
Table
Table of
of Contents
Contents
Letter
to
Letter to Shareholders
Shareholders
Business
Business Overview
Overview
Balance Sheet
Income Statement
Cash Flow Statement
Notes –
– Cash
Cash
Notes
Notes –
– Long
Long Term
Term Assets
Assets
Notes
Notes – Revenue
Auditors Report
Compliance Processes
Output
Options
Collaboration
Clarity FSR
External Document
EDGAR-ready
In-Design
HTML
Data Collection
(Statistical & Operational)
9
Sharing Information Across the Organization
“One Version of the Truth”
Across the Enterprise
Investor Relations
Clarity
FSR
External Reporting
Internal Reporting
Regulatory Reporting
Legal
10
Clarity FSR – XBRL
Louis Matherne
Director, XBRL Services
SEC XBRL Mandate
“Detail tagging of notes/schedules”:
• Every data point (e.g., monetary value,
percentage or number) in the financial notes or
within bodies of text must be separately tagged
June 30
June 30 2009
Large Accelerated Filers
(~500 companies)
>$5B public float
All other Large
Accelerated Filer
(~1,200 companies)
All Remaining Filers
(~7,200 companies)
June 30 2010
June 30
June 30 2011
June 30 2012
Detail tagging
of financials
Block tagging of
notes/schedules
Detail & block
tagging of
notes/schedules
Detail tagging
of financials
Block tagging of
notes/schedules
Detail & block
tagging of
notes/schedules
Detail tagging
of financials
Block tagging of
notes/schedules
Detail & block
tagging of
notes/schedules
12
External Reporting & XBRL
Bolt-On XBRL (Year 1 – Block Tagging Only)
Financial
Consolidations
SEC
ExternalExternal
Reporting
Reporting
Process Process Filing
Filing
Deadline
SEC
Filing
13
External Reporting & XBRL
Bolt-On XBRL (Year 2 – Detail Tagging)
Financial
Consolidations
External
External SEC
Filing
Reporting
Reporting
Process
Process
Filing
Deadline
SEC
Filing
SEC
Filing
With more work to do the
risk of late filing and the
risk of errors increases.
14
External Reporting & XBRL
Clarity FSR’s Integrated XBRL
Financial
Consolidations
Filing
Deadline
External
External SEC External SEC
Reporting
Filing
Filing
Reporting Process
Reporting Process
Process
SEC
Filing
With Clarity FSR, the XBRL tagging is more efficient:
• XBRL tagging is integrated within the external reporting process, plus
• Clarity FSR Tag OnceTM technology make future reporting even faster
Leading to:
• Reduced Risk of Late File, and
• Reduced Risk of Errors
Plus, Clarity FSR automates the overall external reporting process, so
timelines can be further reduced
15
Clarity FSR – the only Integrated XBRL Solution
Bolt-On
Clarity FSR
to the External Reporting Process
Integrated with the External Reporting Process
Basic XBRL tagging
XBRL tagging
Support for the latest taxonomies
XBRL Validation
Advanced XBRL Capabilities
Tag OnceTM
Seamless Integration with Source Data
Automated Rounding
Define document once - publish to multiple
formats
Audit trail
Workflow
Automated Taxonomy Extensions
Taxonomy Version Management
Taxonomy Custom View
Taxonomy Collaboration
Inline XBRL Output
Variables in text
Integrated Compliance Check-Lists
16
Clarity Systems
Briefing to FEI CFIT
Mark Nashman
President & CTO
mnashman@claritysystems.com
416-250-5500 ext. 407
Louis Matherne
Director, XBRL Services
lmatherne@claritysystems.com
212-336-0452