Digital Financial Reporting

Market segmentation is the process of dividing a larger market that appears homogeneous into groups with distinct but similar needs or wants.  You then design products, pricing, and perception that match the preferences of each unique group.

Products that are used to create XBRL-based financial reports that are ultimately submitted to regulators such as the SEC or ESMA can allow errors because those regulators don't seem to care much about report quality.

However, when XBRL-based digital financial reporting is implemented within the enterprise, quality matters a lot.  No organization in their right mind, large or small, would ever implement digital financial reporting internally if the new digital approach is not somehow better, cheaper, or faster than the current approaches that they use.

Will accounting, reporting, auditing, and analysis go digital?

Well, that is up to software vendors. Can software vendors create software that is better, cheaper, and/or faster than current accounting, reporting, auditing, and analysis approaches.

Public/listed companies that reoprt to the SEC and ESMA are mandated to do so.  They have no choice; and so they are required to purchase something even if it does not work correctly.

Private companies do have a choice.

OK, so how do you create software that improves current accounting, reporting, auditing, and analysis approaches?  You do that by being clever, creative, and innovative.

My document Special Theory of Machine-based Automated Communication of Semantic Information of Financial Statements documents proof that XBRL-based digital reporting can work and how to do make it work.