Reconciling, CM, DCA, REA, SBRM, XBRL, and a Few Other Odds-and-Ends
Just as I am reconciling three approaches to representing a conceptualization of a business report; I am also endeavoring to reconcile several other "inputs" related to accounting, reporting, auditing, and analysis. Here is an inventory of these different inputs:
- Conceptual Model (CM) of Business Report, Seattle Method Conceptual Model of a Business Report
- Data Centric Accounting (DCA) which was created by Semantic Arts, Dave McComb, and Cheryl Dunn and documented in The Future of Accounting
- Reporting Framework (will tie to each), Seattle Method
- Report Model and Report (will tie to each), Seattle Method
- Showcase of Capabilities (will tie to each), Seattle Method
- Accounting and Economic Ontology Terms, from ISO/IEC Accounting and Economic Ontology
- Resources, Events, Agents (REA) which was created by Bill McCarthy and documented in The REA Accounting Model as an Accounting and Economic Ontology, published by the American Accounting Association and written by William E. McCarthy, Guido L. Geerts, and Graham Gal.
- Events which is other information related to business events which I have run across.
- XBRL International's XBRL Global Ledger transaction reporting framework
- General Ledger Transactions, Seattle Method
- XBRL International's Open Information Model (OIM)
- OMG's Standard Business Report Model (SBRM)
- The Mathematics of Double Entry Bookkeeping, David Ellerman
- Accounting, the Language of Business
- Logical Theory Describing Double Entry Bookkeeping
- Logical Theory Describing Accounting and Audit Working Papers
- Logical Theory Describing Financial Report
- Financial Statement Mechanics and Dynamics
- Wikidata, Accounting Equation
- Teamboard, Accounting Taxonomy
Why am I doing this? Well, all these things are tied together. However, many of these things are being created in silos. Much of the terminology is consistent, but there is work to be done to improve the consistency. I am going to create a working proof of concept represented using the global open industry standard XBRL that ties all these things together. It just makes a lot of sense.
Accounting information wants to be connected. In fact, it is unnatural for accounting information to NOT be connected. Traceability is natural; not being able to trace, track, walk, drilldown, drill up, drill across, is an indication that there is some sort of problem. One issue is a missing piece of metadata related to business event categories. That is a straight forward fix. Another issues relates to the individual silos people are creating. That is a straight forward fix also. One condition contributing to issues is the fixation of the notion of a document and creating documents in the wrong order. Again, easy fix. Then you have what people call the "integration hairball" or the "application jungle". That might be a little harder to fix; but doable.
The ultimate objective is to create the next version of this MINI 2025 Financial Reporting Framework working proof of concept that ties (links) everything together in both directions to demonstrate how things could work.
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