Common Practice Financial Reporting XBRL Taxonomies

I am thinking of creating two common practice financial reporting taxonomies.  One for US GAAP and one for IFRS.  These XBRL taxonomies would be for small and medium sized enterprises (SMEs).  There are several reasons to do this.

  1. Currently, the IFRS Foundation is reluctant to provide common practices concepts in their XBRL taxonomies.
  2. Currently, the IFRS Foundation is reluctant to include commonly used subtotals in the IFRS standards or the IFRS XBRL taxonomy.
  3. Both the US GAAP and IFRS XBRL Taxonomies are not very well represented.  Both disregard XBRL International Best Practices guidance for using XBRL dimensions by mixing their modeling approaches (e.g. sometimes hypercubes are used, other times hypercubes are not used).
  4. Neither the US GAAP XBRL Taxonomy nor the IFRS XBRL Taxonomy can be considered complete.  Both leave out important mathematical computations that need to be represented using XBRL Formula.
  5. Neither the US GAAP XBRL Taxonomy nor the IFRS XBRL Taxonomy represents "wider-narrower" associations.
  6. Neither the US GAAP nor IFRS XBRL Taxonomies follow the good practices guidance of the Seattle Method.
  7. Neither the US GAAP nor IFRS XBRL taxonomies are of the quality that could be used internally within an enterprise.
  8. There is currently no XBRL taxonomies that could be used by small and medium sized companies that wanted to leverage XBRL-based digital financial reporting for external general purpose financial reports or internal financial reports. This is not about meeting some regulator mandate or even generating XBRL-based reports; this is about making financial reporting processes better, faster, and/or cheaper.

And so, the current US GAAP and IFRS XBRL Taxonomies are not optimal.  Part of the reason for this experimentation is to learn how to do this right.  Here is a first prototype of an IFRS common practice XBRL taxonomy.


Here are 13 prototype base financial reporting schemes represented using XBRL. (See the numbered list).

Here is a prototype for AASB 1060 that provides the best idea of what those common practices XBRL-taxonomies that I will create would look like.

Comments

Post a Comment

Popular posts from this blog

Getting Started with Auditchain Luca (now called Luca Suite)

Image
(Note that a newer, production version as opposed to only the development version , of Luca Suite is available) The Innovator's Dilemma points out that disruptive innovations often look like toys that are doing everything wrong. Auditchain Luca , which is part of the Auditchain Suite , is a unique approach to creating a knowledge graph .  To experience using Auditchain Luca, have a look at the Getting Started with Auditchain Luca instructions. Be sure to grab the Excel and JSON import files used for this getting started exercise.   This getting started exercise uses one of several different approaches to getting information into a tool for constructing and viewing professional quality knowledge graphs .  Additional getting started guides will be made available over time. Auditchain Luca might not make sense to you if you don't understand the paradigm shift that is occurring and if you have not shifted your mental map. For the next step in your journey, consider t...
Read more

Relational Knowledge Graph System (RKGS)

Image
Relational Knowledge Graph System (RKGS) is an interesting idea that combines the relational paradigm and the knowledge graph paradigm.  This documentation, Why RKGS , explains the idea. This gets even more interesting with the notion of "relational AI".  RelationalAI is described as follows by the company of the same name, Relational.ai : “RelationalAI is a cloud-based relational knowledge graph management system, with state of the art probabilistic processing and declarative reasoning at scale to make developing Data Applications a superpower for your business.” This notion of knowledge graphs represented in relational databases fits into my belief that knowledge graphs have two aspects: the expression SYNTAX and the logic of what is expressed or SEMANTICS. While the LOGIC of a knowledge graph is always the same regardless of technical syntax used to express that logic; there are many, many different technical syntaxes that can be used to represent a knowledge graph. There...
Read more

Professional System for Creating Financial Reports Leveraging Knowledge Graphs

Image
The document Professional System for Creating Financial Reports Leveraging Knowledge Graphs explains a new approach, a new paradigm, for creating financial reports.  The document provides a practical, nontechnical description of a professional system for creating provably high-quality financial reports where the report creator is using financial reporting schemes (such as US GAAP and IFRS) where report creator is permitted to modify the report model which leverages global standard knowledge graphs represented using XBRL. This new approach is useful, it is highly novel, and the details were highly complicated to pull together.  This is certainly not an incremental innovation.  It is definitely a disruptive innovation and it could very well be a foundational innovation. You can decide which for yourself. Foundational technologies have two dimensions that need to be considered: novelty and complexity. The more novel the technology is, the more effort needed to ensure users ...
Read more