16th XBRL International Conference

Report
Track: 4
Title: Innovations in the credit chain
Speaker: Fritz Witt – June 25th 2009
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.
Internal
Financial
Reporting
Business
Operations
Processes
XBRL
Participants
XBRL
External
Financial
Reporting
XBRL
Management
Accountants
Software Vendors
Auditors
Economic
Policymaking
XBRL
Financial
Publishers
and CAI’s
Companies
Trading
Partners
Investment
Lending,
Regulation
Regulators
Banks
Central
Banks
Source DNB
4
The influence of Basel II on companies
Banks
PR internal
external
Credit conditions
Marketing
purposes
Asset
management
Capital
market
Participations
intangible assets
working capital
Risk and
performance
management
Access capital market
and private equity
Company
Purchasing
Information
Insurance
Supplier ratings
Buyers cooperative
Credit scoring
Suppliers
Management
Buyers
Client
Value chain
Value chain
Value chain
Bank
Client
Accountant
Bank
Client
Accountant
Bank
Client
Accountant
Intermediary
Bank
Intermediary or
accountant
Mediation:
Alternatives:
• Other kind of loan
•Grants
• Other bank
•Private Equity
• Risk PD / LGD
• Monitoring
• Credit advice
Credit applications
against lowest costs
integrated with the
front offices of the
banks (term sheets
execution etc.)
Bank
• Mezzanine
Value chain
Client
Accountant
assessed XBRL reports
unassessed XBRL raports
URA Rating
factory
Financial
advisor
Bank

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: [email protected]
Phone: +31 (0)10 - 2489680

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