Standard Business Reporting
Encyclopedia
Standard Business Reporting is a group of international programs instigated by a number of governments to reduce the regulatory burden for business
.
The concept is to make business the centre when it comes to managing business-to-government reporting obligations. Businesses conduct their own financial administration
; the facts they record and decisions they make should drive their reporting. The government should be able to receive and process this information
without imposing undue constraints on how businesses administer their finances.
The method used to achieve this goal is to define a "common language" (or taxonomy
) using XBRL
, then provide systems to process information classified under the taxonomy.
’s objectives to reduce the administrative burdens on businesses. The project was sponsored jointly by the Dutch Ministries of Finance and Justice. The NTP created an XBRL taxonomy that "enables businesses to generate the required reporting information directly from their own records and the government to then process this information efficiently and effectively".
The Dutch approach was adopted by the Australian government in 2006, which established the Standard Business Reporting (SBR) Program. In addition to Australia, other countries (including New Zealand) are also planning to apply this approach. This approach has since been internationally designated as Standard Business Reporting.
In December 2008, the Dutch government decided to rename the NTP to the Standard Business Reporting (SBR) Programme, thus adopting the name introduced by Australia. The Dutch SBR programme has been tasked with deepening and embedding the results obtained so far and broadening the scope to other domains and applications.
The objective of the SBR Program in Australia is to reduce the cost of reporting for business by A$800 million over six years at a cost of A$320 million over the same period.
The key activity of the SBR Program is to work across agencies and jurisdictions to standardise the reporting approach and language – developing the taxonomy. As well as the reporting language, SBR is developing a new e-channel for business which will include a single sign-on to on-line services across the agencies that are in scope.
More than 75 government forms are in scope to be rationalised and replaced by electronic lodgments.
(e.g. Council of Small Business Organisations of Australia), professional associations (e.g. CPA Australia
) and the SBR program itself.
The chair is Peter Strong, of the Council of Small Business Organisations of Australia.
published a business case
for adopting an SBR program. The business case states that success relies on a high take-up rate by intermediaries such as accountants and lawyers. This is because many owner-operators and small businesses (68% and 21% of businesses, respectively) conduct their reporting via these third-parties.
The business case states that "SBR will deliver compliance cost
reductions to business by reducing the need for them to submit information to multiple agencies, standardising data definitions and implementing a standard communication language.".
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
.
The concept is to make business the centre when it comes to managing business-to-government reporting obligations. Businesses conduct their own financial administration
Financial accountancy
Financial accountancy is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders...
; the facts they record and decisions they make should drive their reporting. The government should be able to receive and process this information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
without imposing undue constraints on how businesses administer their finances.
The method used to achieve this goal is to define a "common language" (or taxonomy
Taxonomy
Taxonomy is the science of identifying and naming species, and arranging them into a classification. The field of taxonomy, sometimes referred to as "biological taxonomy", revolves around the description and use of taxonomic units, known as taxa...
) using XBRL
XBRL
XBRL is a freely available, market-driven, open, and global standard for exchanging business information. XBRL allows information modeling and the expression of semantic meaning commonly required in business reporting. XBRL is XML-based...
, then provide systems to process information classified under the taxonomy.
History
The Dutch Taxonomy Project (Nederlandse Taxonomie Project) or NTP began in 2004 as part of the Dutch cabinetCabinet (government)
A Cabinet is a body of high ranking government officials, typically representing the executive branch. It can also sometimes be referred to as the Council of Ministers, an Executive Council, or an Executive Committee.- Overview :...
’s objectives to reduce the administrative burdens on businesses. The project was sponsored jointly by the Dutch Ministries of Finance and Justice. The NTP created an XBRL taxonomy that "enables businesses to generate the required reporting information directly from their own records and the government to then process this information efficiently and effectively".
The Dutch approach was adopted by the Australian government in 2006, which established the Standard Business Reporting (SBR) Program. In addition to Australia, other countries (including New Zealand) are also planning to apply this approach. This approach has since been internationally designated as Standard Business Reporting.
In December 2008, the Dutch government decided to rename the NTP to the Standard Business Reporting (SBR) Programme, thus adopting the name introduced by Australia. The Dutch SBR programme has been tasked with deepening and embedding the results obtained so far and broadening the scope to other domains and applications.
Dutch Implementation
As of the first of January 2007, businesses and intermediaries can report their financial data to the government using the Dutch XBRL taxonomy.Australian Implementation
The 2006 report of the Taskforce on Reducing Regulatory Burdens on Business, “Rethinking Regulation” (the Banks report), recognised that government reporting requirements impose a significant burden on Australian business.The objective of the SBR Program in Australia is to reduce the cost of reporting for business by A$800 million over six years at a cost of A$320 million over the same period.
The key activity of the SBR Program is to work across agencies and jurisdictions to standardise the reporting approach and language – developing the taxonomy. As well as the reporting language, SBR is developing a new e-channel for business which will include a single sign-on to on-line services across the agencies that are in scope.
Scope
The agencies in scope are:- Australian Tax Office (ATO)
- Australian Bureau of StatisticsAustralian Bureau of StatisticsThe Australian Bureau of Statistics is Australia's national statistical agency. It was created as the Commonwealth Bureau of Census and Statistics on 8 December 1905, when the Census and Statistics Act 1905 was given Royal assent. It had its beginnings in section 51 of the Constitution of Australia...
(ABS) - Australian Securities and Investments CommissionAustralian Securities and Investments CommissionThe Australian Securities & Investments Commission is an independent Australian government body that acts as Australia's corporate regulator...
(ASIC) - Australian Prudential Regulation AuthorityAustralian Prudential Regulation AuthorityThe Australian Prudential Regulation Authority is a statutory authority and the prudential regulator of the Australian financial services industry.-Regulatory scope:...
(APRA) - State and Territory Revenue Offices (8 of them)
More than 75 government forms are in scope to be rationalised and replaced by electronic lodgments.
Planned Solution
The Australian SBR solution is planned to be developed as follows:- Rationalise and harmonise the reporting terms and definitions in use
- Develop a Reporting Taxonomy
- Map the Reporting Taxonomy to a chart of accountsChart of accounts__FORCETOC__A chart of accounts is a created list of the accounts used by a business entity to define each class of items for which money or the equivalent is spent or received...
(provided via a software package) - Develop IT capabilities and infrastructure, including:
- Whole of Government authentication/single sign on process; and
- System for secure on-line interactions
- Connect government systems to the IT capabilities and infrastructure
- Connect businesses to government systems via third-party software
Business Advisory Forum
The SBR program also created the SBR Business Advisory Forum as a way to provide ongoing consultation to the project. It is made up of 18 representatives drawn from industry groupsTrade association
A trade association, also known as an industry trade group, business association or sector association, is an organization founded and funded by businesses that operate in a specific industry...
(e.g. Council of Small Business Organisations of Australia), professional associations (e.g. CPA Australia
CPA Australia
CPA Australia is one of three professional accounting bodies in Australia, the others being the Institute of Public Accountants and the Institute of Chartered Accountants of Australia....
) and the SBR program itself.
The chair is Peter Strong, of the Council of Small Business Organisations of Australia.
NZ implementation
In May 2008 the New Zealand Ministry of Economic DevelopmentMinistry of Economic Development
Ministry of Economic Development may refer to:* Ministry of Economic Development * Ministry of Economic Development * Ministry of Finance and Economic Development * Ministry of Economy and Sustainable Development...
published a business case
Business case
A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or...
for adopting an SBR program. The business case states that success relies on a high take-up rate by intermediaries such as accountants and lawyers. This is because many owner-operators and small businesses (68% and 21% of businesses, respectively) conduct their reporting via these third-parties.
The business case states that "SBR will deliver compliance cost
Compliance cost
A compliance cost is expenditure of time or money in conforming with government requirements such as legislation or regulation. For example, people or organizations registered for value added tax have the extra burden of having to keep detailed records of all input tax and output tax to facilitate...
reductions to business by reducing the need for them to submit information to multiple agencies, standardising data definitions and implementing a standard communication language.".