Theory of Physical Format Independence

Years ago I posed a hypothesis that financial statement logic should be consistent no matter what the physical format used to provide that financial statement information.  After significant testing, between 2015 and about 2018, I have reached the conclusion that my hypothesis was correct and now I have my theory of physical format independence.

Here are many of the best details related to my testing, poking, and prodding and prototypes that I constructed to test my hypothesis:

• Hitchhikers Guide to Metapatterns
• Neutral Format Templates (2007 prototype)
• Neutral Format Tables (2007 prototype)
• Many Different Data Formats, Why XML?
• Sensemaking
• PROOF rendering (auto generated by computer)
• AASB 1060 rendering (auto generated by computer)
• Interactive Information Hypercube
• Sample Instance Proof (PDF)
• Interactive Information Hypercube (PDF, Prototype)
• Comprehensive Example (2013)

A financial statement tells a story.  That story should be the same story whether the financial statement is chiseled into a clay tablet, scribed onto papyrus, penned onto a piece of paper, stenciled using a mimeograph machine, copied using a Xerox machine, sprayed onto a piece of paper using a laser printer, typed into Microsoft Word by hand and then printed, or represented in machine readable physical format such as XBRL, RDF, JSON-LD, GQL, PROLOG,  or any other such physical technical oriented format.

It should be pointed out that there are two completely separate aspects to a financial statement: (1) the representation of the logic/meaning conveyed by the financial statement and (2) the presentation preference of the person putting that logic/meaning into some specific human readable form.

I would further point out that it is impossible to take 6,000 financial statement presentation formats, give those to a machine, and have a machine sort out the logic and meaning effectively and correctly and then use that information in some down stream machine based process.

However it is possible to take 6,000 financial statement representations created in a global standard format, such as XBRL, have a machine sort out the logic and meaning effectively and correctly, and then use that information in some sort of down stream machine based process.  It is likewise possible to take each of those 6,000 financial statements represented using that global standard format, such as XBRL, give that representation to a software application and have that software generate an acceptable human readable/consumable presentation that would be usable for each and every one of the 6,000 machine readable representations.  It would also be possible to allow each user of a financial statement to autogenerate a near pixel perfect presentation that they would be relatively happy with or, if they wanted to spend more time to "tag" the information into something like Inline XBRL and have an even better presentation that they would be even happier with.  With even more work,  a representation can be formatted into pretty much any format desired using, say, Adobe InDesign.

The point is that it is pretty much impossible to have a computer sort out something that was created by a human; but it is relatively easy to have a machine sort out for a human something that was created by a machine.

Thing of a "neutral" or "natural" rendering of logic, independent of presentation preferences that tend to be subjective in nature.

Additional Information:

• Financial Statement Mechanics and Dynamics
• Showcase of Reports
• PLATINUM Business Uses, Test Cases, Conformance Suite
• Professional Accountant’s Interests, Perspective, Position, and Risks