|Q What is a Standard Business Reporting (SBR) program, and what are its defining features?|
|A SBR programs are regulatory initiatives aimed at streamlining and reducing the cost of business-to-government reporting. There are currently two officially recognized SBR programs: the Standard Business Reporting Programma in The Netherlands and the Standard Business Reporting Program in Australia. The SBR approach is also under consideration by various other countries.The key features that distinguish a SBR initiative are:They are cross-government and multi-agency initiatives. This is a key feature because one of the immediate and most effective ways to reduce the reporting burden and the cost of compliance is to harmonize the information requested by multiple Government agencies, which is frequently duplicated. During the initial period of activity, in The Netherlands there was a reduction of reporting elements (fields in forms used to submit information to a Government agency, such as tax returns or financial statements) of 98%, from 200,000 to 4,500. In Australia the reduction was 71%, from 9,648 to 2,838. The benefit for those required to submit the information are evident, and in order to achieve this particular kind of result, multiple Government agencies must participate to the SBR program.
They cover multiple forms across different domains. This is another requirement to realize a significant regulatory burden reduction for two main reasons:
They make extensive use of open standards. The two existing SBR programs use the Extensible Business Reporting Language (XBRL) to represent the forms in scope with a single XBRL taxonomy. XBRL is not typically the only open standard used in a SBR initiative: data transport, messaging, authentication and encryption are only a few examples of other key components of SBR programs where open standards play a role.
In relation to the use of XBRL by SBR programs, the architecture of the XBRL taxonomy plays an important role – not from a technical perspective, but rather as a tool to facilitate harmonization and governance within the program. In the Australian SBR program, the key feature of the SBR AU taxonomy is its two-layered structure:
The benefits of this architecture for the Australian SBR program have been significant:
XBRL FAQ: What Is a Standard Business Reporting (SBR) Program?
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