PROOF

My PROOF is a working proof of concept financial reporting framework used for testing, communicating, helping people learn, making sure things work correctly when representing information in an XBRL taxonomy (i.e. report model) and XBRL instance (i.e. report) to represent the logic of a report model and reported facts.

Here is a reference implementation of a report created using the proof financial reporting framework (a.k.a. financial reporting scheme) working proof of concept.

Once you understand the PROOF, a next big step is to work through the Master Class in Representing Financial Statement Logic using XBRL.  This helps you see that there are different ways to represent the same financial report logic. Why is this helpful? That exercise helps you understand best practices for representing financial statement information.

What follows is more details if you really want to dig deep into the PROOF working proof of concept.

Most people will look at the PROOF and think that it is a toy.  But a knowledgeable observer will understand what the PROOF is and why it is important and useful.  The PROOF was created by reverse engineering thousands of XBRL-based reports submitted to the U.S. Securities and Exchange Commission in mainly US GAAP but also using IFRS.  All those reports "revealed" the logical model of a financial report which I documented. Here is a simple view of the report model.

Then, I attempted to build the SMALLEST XBRL taxonomy and report that would exercise 100% of the report logic contained in such financial reports.  The result was the PROOF which effectively proves how XBRL-based reports need to be created in order to be (a) consistent with the XBRL Technical Specification(s) and (b) consistent with the logic of a financial report.

Other things build on the foundation laid by the PROOF.  Use cases and test cases make up a conformance suite, prototype financial reporting schemes that start small and grow progressively larger and larger, a showcase of reports that provides visual examples of what you can do with XBRL, and all the materials in my documentation that helps you understand and master XBRL-based reporting.

Here is some additional documentation that helps you understand the PROOF:

• Video Explaining PROOF Financial Reporting Scheme: This is an older video that uses the GOLDEN version of the PROOF as opposed to the newer PLATINUM version of the PROOF.  But, it helps you get an understand of the PROOF financial reporting scheme and create a report using that financial reporting scheme. (Will be updated later.)
• Creating a Report: Video focusing on creation of a report, uses the PROOF financial reporting scheme.
• Proof Financial Reporting Scheme Documentation; This provides a prototype of very basic human readable documentation and links to machine readable documentation of a financial reporting scheme.  (Remember, this is a prototype used for testing and training.)
• Running PROOF in Pacioli Documentation: This link is to a ZIP archive that has a Word document in it that has a bunch of Auditchain Pacioli scripts that can be run using the Auditchain Pacioli Power User Tool. (This explains what Pacioli is)
• Articulation within PROOF: This is a graphic that shows you visually the "articulation" (mathematical interconnections) that the PROOF has to process properly.
• Excel and JSON Import Files: This is a ZIP archive that contains an Excel file and a JSON file that shows the database table format of information and which can be used to IMPORT an entire report model and report into Auditchain Luca.
• Import Information Shown in ROWS: This is a link to Rows which you can use to see what the imported data looks like.
• Reference Implementations: These reference implementation helps you understand the notion of a reporting style.  Here are all the reference implementation files in one place:
• ref (entire reporting scheme test)
• BSC-IS01-CF1
• BSC-IS02-CF1
• BSU-IS01-CF1
• BSU-IS02-CF1
• NET-IS01-CF1
• NET-IS02-CF1
• SBRM Formats: This ZIP archive has representations of the PROOF information in XBRL, Excel, JSON, HTML, and Microsoft Access. This helps you understand the logical conceptualization of a business report. (For those interested, this a different version of PROOF represented using the Neo4j Cypher syntax.  Here are some prototypes of representations in RDF: SBRM.ttl; AE-MODEL.ttl; AE-REPORT.ttl.  Here is a graphic of how I put business reports into a Microsoft Access database, not saying this is right...it is how I personally store information.)
• LOGIC: This is a human readable representation of the LOGIC that must be representable within a digital business report: set, roll up, roll forward, arithmetic, restatement (a.k.a. adjustment), difference (a.k.a. variance), dimensional roll up, roll forward info, text block (a.k.a. prose). Here is a Show case of business use cases, conformance suite.
• Google Sheets:
• PROOF-IMPORT
• PROOF-REPORT
• PROOF-REPORT-Published

The PROOF demonstrates this notion of being able to express all the logic that is represented within the PROOF example of a business report and then serializing that logic into any of the technical formats below:

After you have had a look at the PROOF financial reporting scheme, it may be helpful to also have a look at smaller (Accounting Equation, SFAC 6, SFAC 8, Common Elements) and larger more complete financial reporting schemes (MINI, AASB 1060).

This is a graphic that shows the sorts of things that can go wrong in digital business reports. Section 8 of this document, Understanding Errors that Can Occur, helps you understand the sorts of things that can go wrong and therefore what rules are necessary to mitigate those potential problems.

So, keep in mind that if you are trying to understand the above and your mind is stuck on how financial reports have traditionally been created for the past 100 years; you may be missing the point of what is being showed.  Try and avoid this mistake.

Visualizing Proof Knowledge Graph:

• PROOF Terms
• PROOF Facts
• PROOF Information Blocks and Disclosures
• PROOF Associations Between Information Blocks
• PROOF Types including Disclosures and Topics Modeled with Types
• PROOF, adds Reporting Style Container (not the actual styles)
• PROOF, mappings between FAC and PROOF concepts
• PROOF, disclosure mechanics
• PROOF, reporting checklist
• PROOF, roll ups (calculations)
• PROOF, other mathematical assertions, restrictions, constraints

Additional Information:

• One Accountant's Perspective on Knowledge Graphs
• Understanding and Leveraging "Semantic Glue" of XBRL-based Financial Reports
• Understanding Logical Objects of XBRL-based Digital Financial Reports
• Logical Digital Twin of Financial Reports
• Seeing Digital Financial Reporting Differently
• Digital Twin for Financial Status and Performance of Economic Entity
• Essentials of XBRL-based Digital Financial Reporting (PLATINUM)
• Mastering XBRL-based Digital Financial Reporting
• World's First Expert System for Creating Financial Reports (video play list)
• Proof Financial Reporting Scheme Documentation (Alternative): This is another financial reporting scheme documentation alternative.
• Getting Started with Auditchain Luca (cloud based software tool that has implemented these ideas)
• XBRL: Understanding What Can Go Wrong
• Super PROOF
• Office of Comptroller of Currency Reporting Scheme (Working proof of concept)
• IFRS for SMEs 2024 + Enhanced (Financial Reporting Scheme, working proof of concept)
• AASB 1060 (Financial Reporting Scheme, working proof of concept)