Digital Financial Reporting

I am big on system theory.  A financial report is a man made logical system. There is nothing "natural" about a financial report.  It was created for a purpose.  A "digital" version of a general purpose financial report is an improved version of the "paper" or "e-paper" version.

The document, Special Theory of Machine-based Automated Communication of Semantic Information of Financial Statements, is my best attempt to explain what it takes to effectively automate the communication of financial information. (This 15 minute video provides an overview of the document. This video play list, Understanding the Financial Report Logical System, contains nine short videos that elaborate on the details.)

These five financial reporting scheme representations use that theory.

This framework is used to represent the models, structures, terms, associations, assertions, and facts that are used to represent information using that theory.

This working proof of concept software application leverages the theory, the framework, and the metadata of the five financial reporting scheme representations.

Artificial intelligence, structured information, distributed ledgers, and Lean Six Sigma are a match made in heaven and will have a significant impact on accounting, reporting, auditing, and analysis in a digital environment that will prevail during the Fourth Industrial Revolution. Lots of synergy!

Want to understand XBRL-based digital financial reporting? Here are six images that explain it.