Business Reporting Frameworks
The 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. Members are developing a voluntary, global disclosure framework designed to be the “gold standard” in business reporting. When fully developed, this framework will provide structure for the presentation of non-financial components of business reports—including key performance indicators—and facilitate greater integration of financial and non-financial components on an industry-by-industry basis.
The framework also enables a more robust application of XBRL in the sense that it can serve as the basis for meaningful taxonomies for the non-financial components of the reporting package such as, the narrative portions of the 10K including MD&A, proxy statements, compensation disclosure & analysis, etc. This framework will have the following components developed on an industry basis:
- Generally accepted definitions, measurements, and voluntary disclosure guidelines for industry-specific, process-oriented value drivers, and key performance indicators;
- Generally accepted, voluntary disclosure guidelines for information about opportunities, risks, strategies and plans, and about the quality, sustainability, and variability of cash flows and earnings.
The EBR Framework provides a listing of reporting elements and common definitions for non-financial components of business reports and key performance indicators.
World Intellectual Capital Initiative (WICI) Framework: Through an international network, the framework has been expanded. The WICI Framework represents a collaboratively developed, freely available comprehensive information framework and XBRL Taxonomy to help companies better communicate with their investors and other stakeholders about strategy and performance.
The Private Company Task Force of the AICPA developed a version of the EBR Framework that is scaled to the needs of non-regulators and privately-held businesses.