• 出版社/出版日：Mordor Intelligence / 2021年1月
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The Disclosure Management Market is expected to register a CAGR of 16.32% over the forecast period from 2021 – 2025. Companies generally close their books in a matter of days, yet they take weeks to publish reports, thus deferring management and stakeholder analyses and decisions. Manual data assembly steps, especially prevalent for management analysis and discussion and notes to the financial statement numeric disclosures, further gives the need for manual review and validation processes for a wide range of internal and external reports. These processes are time-consuming, and inefficient and disclosure management applications provide report-writer functionality through word processing and spreadsheet applications commonly used in manual reporting steps. Disclosure management applications connect information within reports to the organization report’s sources of information, including consolidation applications, data warehouses, ERP systems, and a range of other information source applications.
– Disclosure Management in the reporting helps the organizations to create and edit the Extensible Business Reporting Language graphically (XBRL) tagged submissions to a regulatory agency such as a 10K or 10Q submitted to the SEC. Organizations can assemble financial statements, commentaries, and supporting schedules that may exist in Microsoft Excel, or Word and map to and deliver the content in XBRL, HTML, PDF, or EDGAR formats. The critical purpose of disclosure management is to centralize and manage the essential documents needed in the close cycle to reduce the risk of an inaccurate disclosure significantly. Instead of the manual tagging reports every period, disclosure management applications allow for reusable mapping of reported disclosures to several relevant XBRL taxonomies, enabling the automatic generation of XBRL reports.
– Delays and mistakes in financial reporting can have far-reaching consequences for companies and even for their shareholders. The impacts in the United States Securities and Exchange Commission (SEC) mandates may include enforcement reviews, actions, and penalties, a comment letter, demanding a time-consuming and expensive response, a required filing amendment, including financial restatement and also drop in the company’s stock price. A study reported by The Wall Street Journal, the errors prompting restatements can be anything from a misapplication of accounting principles to a mistake in inputs in accounting software or an error in Microsoft Excel schedules. Notorious examples of data errors in SEC filings have occurred even among high-profile companies such as Netflix, which creates a demand for efficient disclosure management solutions.
– In June 2020, Red Oak Compliance Solutions has announced the release of Smart Review, which allows compliance professionals to effectively build and maintain a single source repository of disclosures, including an audit trail for disclosure updates and changes. This disclosure library will enable firms to streamline their advertising review process, which in turn increases the accuracy and confidence in disclosure management and reduces the risk of disclosure errors and omissions. With the enhanced fast-paced digital environment, marketing teams need to move quickly and take advantage of opportunities and market trends. Smart-Review reduces the pain points marketers experience during the review process through its disclosure repository and the implementation of business intelligence rules to flag potential missing, outdated, or unneeded disclosures on the material.
– Due to the uncertainty in the economic impact of COVID-19, there would be a significant change in the assumptions used to measure the fair value of the assets and liabilities of the company at the end of reporting period including considerable differences in the valuation techniques being adopted by the organizations on account of change in market conditions and related observable inputs, previous redundant information, etc. Companies aim to provide adequate disclosures in their year-end financial statements on current and potential impacts associated with COVID-19 on the results of operations, liquidity, and capital resources. This gives rise to a need for efficient disclosure management solutions for an accurate assessment of the qualitative and quantitative evaluation of the organization’s business activities, financial situation, and economic performance.
Key Market Trends
Cloud is Expected to Witness Significant Growth
– The shift towards digital reporting for various companies globally is underway. The SEC mandate in the US, ESMA mandate in Europe, and the CIPC mandate in South Africa require all public and private entities listed with it to file their reports in the XBRL standard. Companies filing to regulators worldwide are increasingly adopting cloud solutions compliance applications that facilitate collaborative working and enable the process, time, and cost efficiencies. The cloud-based solutions can offer several advantages for collaborative authoring, especially in the context of something as critical as the compliance reporting process.
– Furthermore, unpublished financial data has the highest risk of data security. Emails are the most insecure way to send across financial reports, especially if they contain highly sensitive unpublished data. Emails are prone to virus attacks and other cybersecurity risks. Apart from this, humans could also be a point of data misuse. While evaluating SaaS solutions, make sure the platform is hosted on a reliable cloud hosting provider such as Microsoft Azure, Amazon, or Google. There are tight data security measures for data such as data encryption, user access controls that ensure that data is accessible only to authorized users.
– The overall preparation process of compliance reports is highly iterative with tight deadlines. The need to deal with a lot of numbers and text with even more edits and iterations could be daunting if the organization does not have an efficient way of working. SaaS solutions offer a centralized way of working where all changes done in the document reflect instantaneously in all output formats, including XBRL, Word, and PDF. Working on a SaaS solution offers an advantage as the organization can always work on the most updated version of the documents and track and review not just the document but also the XBRL.
– Moreover, one of the most significant benefits of using a SaaS solution is that organizations can never lose sight of their compliance documents and can get a higher level of control and visibility of the documents, XBRL tagging, including any last-minute changes. However, some companies consider the move to the cloud itself as a limiting factor, both in terms of the hassle and the costs involved. Instead, they are upgrading existing systems rather than migrating to a new environment altogether. Implementing cloud-based solutions can provide better scalability and a considerable reduction in the total cost of ownership over the years.
– A significant number of companies in the market, such as Oracle Corporation, SAP SE, Workiva, Inc., etc. offer cloud-based disclosure management solutions. For instance, cloud solutions from Workiva enable accounting and finance teams to connect data from ERP, GL directly, or data warehouses for use in multiple reports with a repeatable process where connected sheets, data, and documents ensure accuracy and improve collaboration for fast, reliable reporting to management, investors, regulators, and the board. In addition to SEC reporting software, Workiva delivers cloud technology in close financial reporting, management reporting, tax reporting, and financial reporting for private companies.
North America is Expected to Hold Major Share
– The contemporary reporting is moving to the Internet, with the regulations in the North American region is requiring company reports to be published in the eXtensible Business Reporting Language, an international business-information standard commonly known as XBRL. Typically, companies initially outsource the tagging of their XBRL reports, thereby adding incremental manual processes and controls and cost and time expenditures, to their efforts. These incremental manual processes adversely affect the quality of XBRL formatted disclosures as recognized by the US Securities and Exchange Commission (SEC), which routinely provides feedback on common and material errors in company reports. Due to this, many companies in the region are adopting disclosure management solutions.
– A working paper published by New York University School of Law examined the effects of late quarterly and annual filings on more than 2,000 companies that had never previously delayed SEC filing. They found that accounting issues are the most common reason for late filings and often determine the severity of the impact. Among the sampled companies, delayed SEC filings of Forms 10-Q and 10-K were an average of 41 days late when accounting was involved, more than three times later than the average delay because of corporate events (13 days) or uncertain reasons (11 days), where these delays could be addressed by the usage of robust disclosure management solutions by the company.
– In October 2019, Certent, Inc., announced that it is deepening its partnership with Vena Solutions, a provider of financial process management software. Certent’s Disclosure Management platform accesses the financial performance data present in Vena and allows customers to link it across multiple Microsoft products. Vena and Certent will expand in North America, targeting mid-market and enterprise companies. Customers in the region can leverage the technology and the deep expertise of both companies to advance their narrative reporting, budget books, and board books report production and management processes. Finance teams can maximize accuracy, shorten the reporting cycle time, and meet compliance requirements.
– As the impact of the global COVID-19 outbreak continues to evolve, the issuers in the North American may find themselves in a position where they are unable to meet annual and quarterly financial statement filing deadlines, particularly as social distancing measures for staff and service providers such as audit teams, disrupt standard course audit or review plans and timelines. In response to these concerns, in March 2020, Canadian Securities Administrators (CSA) has announced its intention to grant blanket relief to market participants, including reporting issuers, extending the filing deadline for several continuous disclosure documents and other exempt market filings by 45-days. This factor is expected to considerably increase disclosure management solutions in the region in response to meeting the deadline.
The disclosure management market primarily comprises multiple international players such as SAP SE, Oracle Corporation, Workiva, Inc., Certent, Inc., etc. in a moderately fragmented and quite competitive environment. The market is witnessing multiple partnerships by the companies to expand their geographical presence, and the companies are continually updating their existing solutions to withstand the competition.
– July 2020 – Part of SAP product strategy for SAP S/4HANA for group reporting, SAP Disclosure Management has been chosen to be the company’s software to help customers produce the last mile of reporting. Consequently, the maintenance schedule of SAP Disclosure Management is extended to December 31, 2027.
– April 2020 – Oracle announced an update to its Disclosure Management solution where customers can add the missing elements to the Document Entity Information (DEI) Element to the Taxonomy Template DEI Sheet, which is supported to meet the SEC validation requirements.
Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– 3 months of analyst support
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness – Porter’s Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment on the impact due to COVID-19
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing complexity in the reporting process characterized by different file formats
5.2 Market Challenges
5.2.1 Multiple constraints related to regulatory disclosure processes
6 MARKET SEGMENTATION
6.1 By Component
6.2 By Deployment Type
6.3 By End-User Industry
6.3.2 IT and Telecom
6.3.6 Other End-User Industries
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Rest of the World
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 SAP SE
7.1.2 Oracle Corporation
7.1.3 Workiva, Inc.
7.1.4 Certent, Inc.
7.1.5 LucaNet AG
7.1.6 DataTracks Global Private Limited
7.1.7 Tagetik Software S.r.l. (Wolters Kluwer N.V.)
7.1.8 CoreFiling Limited
7.1.9 Trintech, Inc.
7.1.10 IRIS Carbon (IRIS Business Services)
7.1.11 Donnelley Financial Solutions (DFIN)
7.1.12 OCR Services, Inc
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET