XBRL-based Digital Financial Reporting

Jessica Talisman's excellent article, The Ontology Pipeline , makes two very important points that I see. First, I have historically and incorrectly seen what Talisman more precisely sees as a dynamic "pipeline" as more of a static "spectrum".  For example, the first two graphics on this page  I had always looked at the graphic as an "either/or" choice that had been made once.  You either build a "controlled vocabulary" or a "thesaurus" or a "taxonomy" or an "ontology" or a "theory". But what Talisman seems to be saying is that this is not a one time choice, this is more of an "evolution" from one point to another point within that spectrum tools.  The tools are not "alternatives", they are "steps". The second important thing that Talisman is pointing out is that the domain of library science which has been working with these sorts of things for 10+ years offers proven, rep...

An axiomatic system is a formal framework specified in a language (such as first-order logic) which sets out a set of axioms and inference rules that specifies an axiomatic theory.  An axiomatic theory is a body of knowledge (a.k.a. domain of understanding, area of knowledge, universe of discourse).  An axiomatic theory provides the groundwork for deductive reasoning. A  statement  (a.k.a. proposition, claim, assertion, belief, idea, fact) is a  declarative sentence  (e.g. not a question, not a command, not an exclamation).   An axiom (a.k.a. postulate, assumption) is a self-evident or commonly agreed upon statement that is taken to be true.  An axiom is excepted, it cannot be proven. But no exceptions or counter examples are known to have been found for the accepted axiom.  An axiom is fundamentally accepted as being true per the axiomatic system. A theorem (a.k.a. proposition, deduction) is a declarative statement that has been prov...

In my blog post, Big Idea for 2025: Semantic Accounting and Audit Working Papers , I mentioned the idea of what amounts to modern accounting and audit tools. This is a part of the " fundamental reorientation of the state of affairs " for and the " new physics " of accountancy. To help me think about this idea, communicate this idea to other accountants, but more importantly to help move the OMG's Standard Business Report Model (SBRM) and XBRL International's update to the Open Information Model (OIM) in the appropriate direction; I have created an updated semi-working prototype of such semantic accounting and audit working papers . The easiest way to see the very basics of what is going on is to use this basic viewer . The following is a summary of the significant additions for this iteration: Putting representations for the transaction level , the mezzanine level , and the financial statement together in one "document". Built out an increased a...

It is time to rethink the design of financial statements. Clay tablets worked well and they had a good run which ended many years ago when the clay tablets were replaced by papyrus and then ultimately paper.  Paper had a good run also but paper financial statements were ultimately replaced by what amounted to an electronic version of that paper; PDF, HTML, and such. We can do better.  Today's demands call for more modern accounting tools . Idealized design  (a.k.a. greenfield project ) is the notion of designing a system without imposing constraints of prior work.  This technique may, or may not, work for rethinking the financial statement. Here are a number of ideas that I would throw at the wall if I were in charge of rethinking the financial statement to make such tools modern: Digital first : The first thing that I would do is abandon the legacy notion of paper and the document and embrace what a financial statement really is; a database or knowledge graph. A fin...

Agile is a framework, philosophy, and principles.  Agile accountancy is applying that agile framework, philosophy, and principles to accountancy.  I define " accountancy " as meaning accounting, reporting, auditing, and analysis; as well as financial, management, cost, tax, and compliance accounting. The Agile Manifesto was created in about 2000 by a group of software developers trying to do a better job of creating software.  The agile manifesto has four key values: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan Those four key values as applied to software development are broken down into 12 principles: Our highest priority is to satisfy the customer through the early and continuous delivery of valuable software. Welcome changing requirements, even late in development. Agile processes harness change for the customer’s compe...

The World Economic Forum published The New Physics of Financial Services which is a massive collection of useful information. This resource, although published in 2018, may help one understand that other industries just might possibly similarly be impacted by these new physics.  Take, for example, accountancy. The following is a summary of the key findings of this exploration: ( starts on PDF page 26 ) Finding 1: From cost centre to profit centre Finding 2: A new battlefield for customer loyalty Finding 3: Self-driving finance Finding 4: Collective solutions for shared problems Finding 5: Bifurcation of market structure Finding 6:  Uneasy data alliances Finding 7: The power of data regulators Finding 8: Finding a balanced approach to talent Finding 9: New ethical dilemmas Some refer to what is going on as a " fundamental  reorientation of the state of affairs ".  Another term is " the great progression ". Another term is " the great upheaval ".  I hav...