Frizt Witt - track 4 - 19th XBRL Conference Paris

Track: 4 Title: Innovations in the credit chain... Speech on behalf of Datev and URA Rating Agency®The URA Rating Agency is convinced that the accountant will be the most important playe

Track: 4 Title: Innovations in the credit chain

Speech on behalf of Datev and URA Rating Agency®

The URA Rating Agency is convinced that the accountant will be the most important player within the rating industry in the near future Because only an independent and neutral intermediary such as an accountant is able to deliver the quality of the data that banks and CAI’s (credit assessment institutions) need to produce a reliable

rating within a transparent rating process

External Financial Reporting

Business Operations

Internal Financial Reporting

Investment Lending, Regulation

Processes

Participants

Auditors

Trading Partners

Banks

Financial Publishers and CAI’s

Regulators

Software Vendors

Management Accountants Companies

Economic Policymaking

XBRL XBRL

Central Banks

Source DNB

Banks

PR internal external

Management

Buyers

Suppliers

Capital market

Information Insurance

Credit conditions

Purchasing

Participations intangible assets working capital

Access capital market and private equity

Risk and performance management

Marketing purposes

Asset

management

Credit scoring

Supplier ratings Buyers cooperative

The influence of Basel II on companies

Value chain

Accountant

Value chain

Accountant

Value chain

Credit applications against lowest costs integrated with the front offices of the banks (term sheets execution etc.)

Bank

Intermediary or accountant

Alternatives:

•Grants

•Private Equity

• Mezzanine

Mediation:

• Other kind of loan

• Other bank

• Risk PD / LGD

• Monitoring

• Credit advice

t

Rating factory

assessed XBRL reports

unassessed XBRL raports

 Summarizing:

◦ Together with local players Datev /URA is able to reduce considerable regulatory burden and processing cost.

◦ Improvement of the quality of the data by means of several assessment techniques like:

 Data level assessments

 Process controlls

 Quality level agreements of the XBRL reports

 Reference ratings according to world class standards

Fritz Witt CRA

E-mail: fritz.witt@uraratingagency.nl Phone: +31 (0)10 - 2489680