Budget Working Proof of Concept Study Group
This blog post summarizes information related to the creation of a budget using a model-driven approach. Here is the fundamental information.
- The budget will be created using the MINI 2023 financial reporting scheme.
- Here is the first iteration of the budget, effectively a "template" which will be modified to create the budget:
- Luca Suite Basic Viewer
- Inline XBRL
- Raw XBRL (will load in Pesseract)
- Report Model
- XBRL Formulas (math rules)
- Video that walks you through initial budget template model
- Video that walks you through fact verification
- Video that walks you through editing of report model
- The budget can be created but the creator MUST NOT violate any of the rules. Here are some of the rules that MUST NOT be violated:
- Fundamental accounting concepts (i.e. you MUST have a balance sheet that balances)
- Types and subtypes (i.e. you MUST use Investments by Owners as an adjustment to equity, it is NOT part of the income statement)
- Model structure (i.e. your report model MUST be logical)
- Reporting checklist (i.e. all these pieces are expected to be in the budget)
The approach that I have learned to use when creating a budget is to create the budget within the context of a complete set of financial statements including a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity. Why? The reason for this is that it maximizes the probability that errors will be apparent to the creator of the budget and reviewer of the budget.
Additional Information:
- Understanding Model-driven, Standards-based, Semantic-oriented, AI-powered Financial Reporting
- Understanding Networks, Hypercubes, Components, and Information Blocks
- Understanding Disclosures
- Track, Trace, Walk
- Mastering XBRL-based Digital Financial Reporting
- IFRS for SMEs XBRL Taxonomy + Enhancements
- Professional Study Group for Digital Financial Reporting
Step 1: Add "Cost of Sales" and "Sales, General, and Administrative Expenses" details.
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