For today’s enterprise, the issue of understanding report consolidation and the controls that exist around those reports is a critical part of corporate governance. In addition to building a corporate culture of accountability and accuracy, there is a very real need to re-examine the manner in which information is produced, verified and disclosed.
KPMG member firms continues to work on new ways to improve information transparency, from examining the accuracy, utility and relevance of key performance measures to reviewing and improving controls that exist around reporting processes.
We believe that for many enterprises the use of XBRL technology will prove the most suitable, platform-independent way to impose rigor on the framework of reporting.
Leading organizations will use XBRL taxonomies to define information, account owners and review points as well as the formulae used to check the reasonableness of information sets. Those same organizations will use XBRL instance documents to give life to the rules that define the information flow, providing new levels of certainty around corporate data. This framework, independent of particular vendors but applied to every system in use, will provide a vehicle for greater levels of control and greater levels of insight into information management in the modern enterprise.
The use of XBRL for corporate governance is an active research effort. Contact us for more information.