www.pwc.com
Automating the Last
Mile of Financial
Reporting.
Financial statement production
solutions and the impact on the quality,
efficiency and internal control of the
financial reporting process.
June 16, 2011
Traditional Reporting Processes
Company reporting processes have traditionally been highly manual,
particularly in the assembly and review steps including:
• Manual spreadsheet aggregation
• Manual report assembly
• Manual queries of sub ledgers
• Distributed document review
• Manual validation, tie-outs and consistency checks
• Centralized and manual workflows
PwC
2
Current Manual Assembly/Review Processes
← Largely unaffected | Affected →
4
5
Supplemental Data
ERP
1
3
ERP
ERP
1.
2.
3.
4.
5.
Consolidation
2
10-Q in Word
Review and Check
Linear Document Review
Distributed Document Review
Manual Assembly via two processes
Manual Spreadsheet Aggregation
Manual Queries of sub-ledgers
10-Q in HTML
Review and
Check
10-Q in XBRL
Edgar
Outsourced and Bolt-on approaches
PwC
3
Built-in Enables Enhanced Processes
Applying standards earlier enables streamlined processes
25% to 50%+ cost/time enhancements
5
1
3
ERP
10-Q in XBRL,
Word, PDF
Report
Writer
ERP
2
Consolidation
ERP
1. Contextual Review
2. Collaborative Review
3. Automated Assembly via a
single process
4. Automated Aggregation
5. Automated Queries of sub-ledgers
PwC
Supplemental Data
4
Edgar
4
Factors Impacting Adoption
Technology
Maturity
XBRL
Adoption of
Automated
Financial
Reporting
Solutions
PwC
5
Companies Using Built-In Solution
Companies
PwC
6
Built-in Impact on Reporting Processes
Before
After
• Manual spreadsheet
aggregation
• Automated spreadsheet
population
• Manual report assembly
• Automated report assembly
• Manual queries of sub ledgers
• Direct access to sub ledgers
• Email/Word doc review
• Collaborative workflow review
• Manual validation, tie-outs and
consistency checks
• Automated validation, tie-outs
and consistency checks
• Centralized and manual
workflows
• Decentralized and manual
workflows
• Manual and implicit
relationships with policy and
reference materials
• Automated and explicit
relationships with policy and
reference materials
PwC
7
XBRL: Bolt-On vs. Built-In
Bolt-On
HTML
Document
Close the
books
File
Word Document
XBRL
Document
Built-In
Close the
books
PwC
Financial
Statement Prep
Software
Auto-generation of
HTML and XBRL
File
8
Extending the Benefits
Process benefits applicable to the accumulation of information, analysis
and collaborative review.
• Rest of 10K and 10Q
• Press Release
• Board Packages
• Analysts Presentations / Fact Sheets
• Management Reporting
• Internal Accounting Memo’s
• Peer Group Benchmarking (numeric and narrative)
• And others
PwC
9
Realizing the Benefits
Process Changes of migration to built-in approach
• Technology
• Training
• Process redesign
• Control redesign
• Access
• Workflow
• Audit trails
• Validation Rules
• Changes
PwC
10
© 2011. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers
LLP which is a member firm of PricewaterhouseCoopers International Limited, each
member firm of which is a separate legal entity.
11