If you understand how computers work; then you will recognize that ontology-like things and other such metadata will play a central role in accounting, reporting, auditing, and analysis in a digital environment. Properly created ontology-like things and other metadata will supercharge accounting, reporting, auditing, and analysis. Consider this diagram:
(Click image for larger view)
If there is any question in your mind about this, I would encourage you to read the following documents:
- Demystifying the Role of Ontologies in XBRL-based Digital Financial Reporting: Helps you understand that XBRL taxonomies and other such ontology-like things will be enhanced.
- Leveraging Functional Components for XBRL-based Digital Financial Reporting: Helps you understand how software applications utilize ontology-like things and other metadata.
- Deloitte's vision of "The Finance Factory": Deloitte has an excellent vision; but how exactly are they going to actually turn that vision into reality? Ontology-like things and other metadata.
- Data Curation: Weaving Raw Data Into Business Gold (Part 1): Explains how curated metadata and other such ontology-like things turn raw material such as crude oil into high-octane racing fuel.
Once you see the "magic" working, it will be easy to understand all of this. For now, you can fiddle around with my prototype ontology-like thing and other metadata. Also, here is some additional brainstorming related to these ideas.