DUNSRight and XBRL – Enhancing Transparency through a Common Commitment to Global Standards

13th XBRL International CongressJune, 2006

CONFIDENTIAL & PROPRIETARYThis material is proprietary to Dun & Bradstreet and may not be reproduced, published or disclosed to others without the

express authorization of the General Counsel of Dun & Bradstreet.

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Business has evolved since Dun & Bradstreet was founded in 1841, but the value of its information has not changed

• Initially, D&B facilitated trade in the United States by– Providing the transparency that businesses needed to set credit terms for business

partners that they did not know personally – Allowing trade across broad geographical areas

• Today D&B’s Worldwide Network helps multinational corporations make credit decisions by

– Providing the transparency that businesses needed to set credit terms for business partners that they did not know personally

– Allowing trade across broad geographical areas

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The D&B Worldwide Network mark symbolizes participation in the alliance which helps customers around the world make business decisions with

confidence.

Our D&B Worldwide Network is the most comprehensive source of local and global business information

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We have implemented strategic relationships around the world in over 24 markets – this is the foundation of our Worldwide Network

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Today, D&B’s partners contribute more than 35% of the 105 million records in our Worldwide Network database

D&B Corp

Alteres D&B

BOL

Bisnode

D&B Australia

D&B Israel

D&B Philippines

D&B Singapore

D&BSAME

IBI

Infocredit

Informa

NICE

TU ITC

TSR

*Includes D&B North Africa

*

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The process for enhancing data that all Worldwide Network Partners share is called DUNSRightTM

GlobalData

Collection1

EntityMatching

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D-U-N-SNumber®

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CorporateLinkage

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PredictiveIndicators

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D&B Global

Database

Quality Information

Quality Assurance

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The D&B Worldwide Network Partners also share a definition of information quality

Quality of Information =

Accuracy

Completeness

Timeliness

+

Cross-Border Consistency

Credit decisions that drive profitable relationships

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The D&B Worldwide Network Partners deliver the transparency required by credit markets – combining local expertise with global standards

• Global commitment to standards for accuracy, completeness, timeliness, and cross-border consistency

• Thought leadership in working with regulators and other market participants in countries and regions that are adopting XBRL standards such as the U.K., Sweden, Japan, and Spain

• Active monitoring of XBRL standards development in other countries and regions

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XBRL has the potential to enhance accuracy and timeliness by facilitating . . .

Data Collection

Companies and other producers of financial data and business reports can automate the processes of data collection.

For example, data from different company divisions with different accounting systems can be assembled quickly, cheaply and efficiently.

Data Reporting

Once data is gathered in XBRL, different types of reports using varying subsets of the data can be produced with minimum effort.

A company finance division, for example, could quickly and reliably generate internal management reports, financial statements for publication, tax and other regulatory filings, as well as credit reports for lenders.  Data handling can be automated, removing time-consuming, error-prone processes.

Data Consumption

Data received electronically in XBRL can be automatically processed, cutting out time-consuming collation and re-entry of information.

For example, software can be used immediately validate the data, highlighting errors and gaps that can immediately be addressed.

Data Analysis XBRL can also help in analyzing, selecting, and processing the data for re-use.  Human effort can switch to higher, more value-added aspects of analysis, review, reporting and decision-making.

Analysts can simplify the selection and comparison of data.  Lenders can save costs and speed up their dealings with borrowers.  Regulators and government departments can efficiently assemble, validate and review data.

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D&B’s Worldwide Network Partners are creating the building blocks needed to deliver XBRL

• D&B has invested in achieving common global data definitions for the Worldwide Network through the development of its Standard Data Architecture

• These global data standards are built on 2 foundational principles:– All data is global

– Data is modelled generically

• D&B has created a Standard Data Architecture for Business-to-Business data exchange using XML through the deployment of its Global Standard Record Layout (GSRL)

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Principle #1, that all data is global, overturns the traditional view that only data that is available in every country is of interest globally

Local Data

Local Data

Global Data

Local Data

Local Data

Global Data

Traditional View Standard Data Architecture View

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Principle #2, that data is modelled generically, reduces the need for change and thus minimizes costs

Here is an example of specific versus generic definition:

• The specific International Dialling Code for France is 33 If viewed as the “French International Dialling Code” it might

be concluded that this is specific local data and defined accordingly - The “US International Dialling Code” and the “UK International

Dialling Code” etc. are defined on an ad-hoc basis as local data If viewed generically as the “International Dialling Code” then

this is seen as global data; it is only the field content which differs by country

• This may seem obvious but the challenge is to apply the same logic to all data. By defining data generically so that only field content is country specific a consistent Standard Data Architecture can be defined for all countries

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The Standard Data Architecture is applied to all data exchanges across the D&B Worldwide Network

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StrategicPartner

StrategicPartner

StrategicPartner

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The D&B Worldwide Network is positioned to meet XBRL standards in the future, but two quality dimensions need more attention

• Completeness– All data elements needed for full risk analysis are not currently

included in the standards

• Legal proceedings

• Payment experiences

• Unique identifiers (e.g., DUNS Numbers): multiple names and corporate family linkages

– Private companies in many countries will not be included within regulatory reporting requirements

• As an example, in the US about 12,000 public companies report to the Securities and Exchange Commission but about 30,000,000 businesses report to the Internal Revenue Service

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Cross-border consistency, another dimension of information quality, will need very careful attention

• XBRL standards are being created by local country regulatory bodies, regional regulatory bodies, industry associations, etc.

• Cross border definitional issues remain unresolved

• As-reported versus standardized data issues remain unresolved

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D&B’s Worldwide Network is committed to delivering the high quality information required to ensure transparency in credit decisions

• A strong commitment to global standards for defining information quality

• A thought-leadership position within countries and regions where standards are being implemented by regulatory authorities

• An active monitoring position in other countries and regions

• The potential to deliver XBRL format as market demand develops

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Questions?