XBRL Business Information Exchange

Modeling Business Information Using XBRL

This page is about modeling business information using XBRL.  Right now, this is a work in progress but it will get people started down the right path.

Information Patterns

Pattern are all around us.  They are not something technical or related to XBRL.  When someone puts something into an Excel spreadsheet, whether they realize it or not they are working with patterns.  XBRL will require business users to think about patterns differently, more formally rather than the informal approach of the past.  This is because XBRL requires these patterns to be explicitly articulated.  This is what makes the automated information exchange which XBRL enables work.

How to model information using XBRL has evolved and is still evolving.  This document, the Evolution of Patterns, explains this evolution of information modeling, or patterns, as it related to XBRL as part of creating the IFRS and US GAAP taxonomies.  It may seem that this information relates only to financial reporting, but don't make the mistake of seeing the information this way.  Just as math is applicable to accounting, it is likewise applicable to engineering or physics or chemistry; these patterns are applicable to all types of business information, not just financial reporting.  It is simply the case that these patterns were created specifically for financial reporting as the business users needing to use this information could relate to financial reporting.

The examples and samples can be used in a number of ways.  The best way is to literally start at the beginning, work through the examples, and try and understand the details as you go along.  The best details are explained in the related documentation and can be seen in the many files.  However, this can be a time consuming endeavor.  The pay back for this investment though is that you will master XBRL.  Another way is to look at the end result.  What you will lose is a lot of the details about why the end result is what it is.

XBRL Taxonomies are Data Models

XBRL taxonomies are data models.  Many business people don't realize this and look at them as a number of different types of things which will cause problems down the road.

Begin with the End in Mind

The best way to understand how to model information is to start at the end and then work back toward the beginning, the information model.  If you think about it, this makes a lot of sense but people don't seem to realize this.  If you actually try to employ the instance document which results from the taxonomy which you have modeled and you can do so successfully, then your taxonomy model will likely work.  You have to be sure you look at not just one instance document, but rather a number of instance documents in order to see if things work as anticipated.

Internally Consistent

Your information models should do the same thing in the same way throughout the information model.  Inconsistencies are not only confusing, but they show how you are thinking and testing (or lack thereof).