In January 2003, the AICPA established the Special Committee on Enhanced Business Reporting to pick up where other initiatives like the Jenkins Committee had left off. In January 2005, the Committee completed its two-year term upon achieving its mission—“to establish a consortium of investors, creditors, regulators, management, and other stakeholders to improve the quality and transparency of information used for decision-making.” Enhanced Business Reporting (EBR) is focused on improving business reporting by developing an internationally recognized, voluntary framework for presentation and disclosure of value drivers, non-financial performance measures, and qualitative information.
The Enhanced Business Reporting Consortium (EBRC) works towards consensus on an internationally recognized framework of voluntary, international guidelines for EBR that supports delivery of information with improved relevance and comparability for decision making. EBR improves the quality and transparency of information companies provide so investors and other key stakeholders can make better informed decisions. With EBR, the focus is on shifting the model from one that is based primarily on historical or lagging financial information to a model that incorporates relevant value drivers, financial and non-financial performance measures, and qualitative information around management’s strategy, plans, opportunities, and risks. EBR delivers a broader view of current performance and greater understanding of an entity’s future. Coupled with enabling technologies like XBRL, EBR will provide users with the breadth of information they require at the speed they need to be successful in today’s economy.