XBRL-based Digital Financial Reporting

Semantics is the study of meaning ; the meaning behind the words we use. Semantics enable explainability and automation at scale. Semantics is a core enabler of communication. In his book, Inhabiting Babel , the author Nicholas Figay makes the following statement in an author's note on page 5: (emphasis is mine) " Drawing from work in systems engineering, modeling, interoperability, and ontologies, this book seeks to show that meaning is always mediated, situated, and carried by human collectives . Models, graphs, and algorithms do not eliminate this mediation; they displace it and sometimes render it invisible ." * * * So what precisely does that phrase mean? " Meaning is always mediated, situated, and carried by human collectives ."  That sentence is making three tightly linked claims about how meaning actually works in the real world. Breaking that one phrase down into those three claims, for clarity, you get: “ Meaning is mediated ” Meaning never arrives raw...

Inhabiting Babel, A Manifesto for Responsible Meaning Engineering is a book written by Nicolas Figay . This book is very practical and easy for a motivated business professional to read. For me, this book has both tempered my expectations as to what is possible and also reassured me of the real possibilities that exist if you do the required work. Accountants and auditors tend to be on the conservative side of the spectrum.  Me included. I am  actually rather conservative in terms of what technology might bring to the table for accounting, reporting, audit, and analysis. I have learned how to "cut the cards" when dealing with sales people and software vendors. What this book does is bring the wisdom from the experiences of an expert in system interoperability, enterprise architectures, and complex systems to helps motivated business professionals and technical professionals that truly want to understand artificial intelligence, cutting through the rhetoric and hype. This boo...

KROG holds itself out to be a universal framework for rules and authorization and describes itself, "KROG is a universal mathematical framework that brings clarity, transparency, and determinism to any rule-based system. Whether you're building AI authorization, smart contracts, business workflows, or governance protocols, KROG provides a rigorous foundation based on deontic modal logic."  KROG is built on four pillars: Knowledge, Rights, Obligations, Governance. The Seattle Method , also a framework , has this notion of a virtuous cycle . That virtuous cycle has four steps: Define, Create, Verify, Extract. What seems to be going on is that KROG and the Seattle Method are looking at the same situation from different perspectives.  What KROG and the Seattle Method both seem to seek is that trustworthy virtuous cycle; that feedback loop.  Both KROG and the Seattle Method agree that governance is key to achieving that virtuous cycle. Both KROG and the Seattle Method seem ...

The Simple Knowledge Organization System (SKOS) is a standard way to describe concepts and the relationships between those concepts so computers and humans can understand and share knowledge consistently. SKOS is a lightweight semantic vocabulary for building controlled vocabularies, taxonomies, thesauri, and classification schemes. SKOS is a standard specification for constructing knowledge organization systems. Home Page SKOS Specification (W3C Recommendation) SKOS Primer SKOS provides four essential building blocks to construct a knowledge organization system: (a) Define Concepts; (b) Group Concepts (a.k.a. Types, Classes); (c) Define Labels; (d) Connect Concepts. Concepts are the things you want to organize.  Labels are the different ways you want to be able to refer to those Concepts. For example, you might have a "preferred label", and "alternative label", and maybe other such labels. Relationships and associations, how concepts are connected, might be ...

Accounting, the universal technology of accountability , is one of the most mature, enduring and robust information processing systems ever devised in human history. With over more than 7,000 years of incremental, iterative refinement; accounting has evolved into one of the most stable, resilient, and interoperable information systems ever developed. Accounting is grounded on a foundation of transparency, traceability , and internal quality control. Its core mechanisms, most notably double entry bookkeeping and financial statement articulation , create a system in which every recorded business event is cross checked, internally validated, and mathematically constrained . The architecture of accounting embodies a zero-error tolerance standard, not merely as a aspirational normative ideal but as a structural property of the system. Its internal checks enable the detection and elimination of unintentional misstatements while simultaneously providing a basis for distinguishing inadvertent...

This blog post summaries information related to "Lego-like" a.k.a. the " Lego analogy ". The Lego analogy is a popular way to explain how complex things can be made simpler by using small, standard parts. Think of a massive Lego castle. If you tried to carve that castle out of a single, solid block of wood, it would be nearly impossible to change later. But because it’s made of Legos, it’s much easier to manage. Here is the Lego analogy broken down into four simple points: Modularity (The "Building Blocks") Instead of one giant, messy project, you break everything down into small, manageable pieces. In Legos: You have individual bricks, wheels, and windows. In the Real World: This could be individual features in an app (like a "login" button) or different departments in a company. Standardization (The "Studs and Tubes") Every Lego brick has the same little bumps (studs) on top and holes on the bottom. Because these "interfaces...