BLOG:  Digital Financial Reporting

This is a blog for information relating to digital financial reporting.  It is for innovators and early adopters who are ushering in a new era of digital financial reporting.

Much of the information contained in this blog is summarized, condensed, better organized and articulated in my book XBRL for Dummies and in the three documents on this digital financial reporting page.

Commentary Linkbase for IFRS-FULL

I created a commentary linkbase for US GAAP a while back.  I started a similar commentary linkbase resource for IFRS-FULL

(I am doing that as part of my template creation exercise for IFRS which will expand my expert system to that reporting scheme.)

What something like the commentary linkbase does is allow you to add helpful commentary or other guidance or explanations to an XBRL taxonomy.  It is just a label linkbase that uses a specific label role.  You can see how the commentary shows up in a software tool in this graphic.

How much coding was required to get software to support this feature? Zero.  Comes with XBRL; if software developers created their software correctly.

This XBRL instance makes use of the commentary linkbase.  It also has a bunch of different labels, another very useful feature of XBRL. (Here is a screenshot of that.)

Imagine all the other documentation you could provide to make taxonomies even more useful!  Got any ideas?  Let me know.

 

Posted on Thursday, June 22, 2017 at 01:03PM by Registered CommenterCharlie in | CommentsPost a Comment | EmailEmail | PrintPrint

What the future of artificial intelligence in government?

An article, What the future of artificial intelligence in government?, which is based on a study by Dr. Peter Viechnicki, William D. Eggers states the following:

At the high end, we estimate within the next 5-7 years, as many as 1.1 billion working hours could be freed up in the federal government every year, saving a whopping $37 billion annually. Ultimately, AI could potentially free up 30 percent of federal employees' time. State government savings in time and money could be similar percentages.

The study, How much time and money can AI save government?, is worth reading.  The study measured what government employees do at a task level.  One of the more interesting things is information about the US Geological Survey, the folks that make maps.  Here is that section:

How cartography went digital

The US Geological Survey (USGS) began producing topographic maps of the nation in 1879 and for most of its history, it printed its maps on paper. If you were an active hiker or camper in the 1980s, you’ll likely remember shelves and shelves of USGS topo maps at outdoor stores, but over the following decade, USGS transformed its mapmaking techniques by embracing digital map production. This transformation, which relied on a major Reagan-era investment in geospatial information systems technology, was disruptive and productive. It significantly improved the efficiency of production—and completely changed the nature of cartographers’ jobs.

Before the transformation, USGS cartographers worked as skilled craftsmen, performing painstaking tasks such as drawing elevation contours on acetate sheets. Today, their duties primarily involve collecting and disseminating digital cartographic data through the National Map program.

Today, USGS officials recall a bumpy transformation. Veteran cartographer Laurence Moore says, “We were slow to appreciate how fundamentally GPS and digital map data would change the world, and tended to think of these technologies as just tools to produce traditional maps faster and cheaper.”

Today, the agency employs only a tenth of the cartographers working there at the peak of the paper-map production era. But paradoxically, the total number of cartographers and photogrammetrists employed by federal, state, and local governments has risen by 84 percent since 1999. And the Bureau of Labor Statistics forecasts a 29 percent growth in employment for cartographers and photogrammetrists through 2024, largely due to “increasing use of maps for government planning.”

The article and the study help professional accountants wrap their heads around what is about to happen to them.

Posted on Friday, June 9, 2017 at 02:41PM by Registered CommenterCharlie in | Comments2 Comments | References5 References | EmailEmail | PrintPrint

Public Company Quality Continues to Improve, Trend is Good

The quality improvement trend continues.  There are currently 10 software generators and filing agents that have 90% or more of their XBRL-based public company financial reports consistent with all of the fundamental accounting concept relations continuity cross-checks.  Average is 87.9%.  On a per test basis, 99.19% of all relations are consistent with expectation.

Here are the current results of my measurements:

 

The biggest notable item is that Workiva went from 84% consistency to 87% consistency, fixing about 114 specific errors.

(Click image for larger view)

 

**********************PRIOR RESULTS**********************

Previous fundamental accounting concept relations consistency results reported: March 31, 2017; November 28, 2016; August 31, 2016; June 30, 2016; March 31, 2016; February 29, 2016; January 31, 2016; December 31, 3015; November 30, 2015; October 31, 2015; September 30, 2015; August 31, 2015; July 31, 2015; June 30, 2015; May 29, 2015; April 1, 2015; November 29, 2014.

Information helpful to understanding errors

Posted on Friday, June 2, 2017 at 07:20AM by Registered CommenterCharlie in | CommentsPost a Comment | EmailEmail | PrintPrint

Garry Kasparov: Don't fear intelligent machines. Work with them.

Who is the world chess champion today; a computer or a human?  In 1997, IBM's Deep Blue took the title.  Today, a computer is no longer the world chess champion.  Neither is a human. Today, a team of computers and humans working together can beat any computer or any human working alone.

That is how the power of computers will be harnessed; by human and computer teamwork.  Human are good at some tasks; not as good at other tasks.  Computers are good at some tasks; not as good at other tasks.  Teaming humans and computers together and leveraging the strengths of each is how work will get done in the future.

This TED Video, Garry Kasparov: Don't fear intelligent machines. Work with them, helps you recognize that human-machine partnerships is the way work will be done in the future.  It also helps you recognize that you need to understand how to partner with machines.

Posted on Wednesday, May 31, 2017 at 09:30AM by Registered CommenterCharlie in | CommentsPost a Comment | EmailEmail | PrintPrint

Excellent Learning Opportunity: Creating IFRS Templates, Examples, Metadata

I am working with a small group of people who are creating for IFRS what I created for US GAAP and for a general reporting scheme example that I created called XASB.

This is an excellent learning opportunity for professional accountants. Software vendors can also learn from this and test their software using the IFRS, US GAAP and XASB examples.

What we are going to do is create all the stuff that makes this expert systemwork for an IFRS-based financial report. To do that, we need to create what is described in this Blueprint for Creating Zero-Defect XBRL-based Digital Financial Reports.

I have a lot of the pieces already. The pieces just need to be more completely built out and tested.  Below are all the existing pieces that I have for IFRS and the equivalent pieces for US GAAP and the XASB prototype:

I have been working with a software developer and we have a working expert systemthat is driven by the above metadata. The US GAAP and XASB metadata is all tested and works.  Some of the IFRS stuff works.

Another thing that I want to test out is digital distributed ledgers.  What I am going to do is offer POINTS or TOKENS to those that contribute to creating the IFRS metadata.  With those POINTS or TOKENS, you can get a license to the expert system software and software support.  I still have to work out details, but basically the more you contribute, the more you will learn, and the better the software license you can earn and you can get earlier versions of the expert system software.

Interested in participating and positioning your self well for the future?  Send me an email (Charles.Hoffman@me.com) and I will put you on my distribution list.  Slots are limited.

As is said, "The best way to predict the future is to create it." (Abraham Lincoln)

Also, "I skate to where the puck is going to be, not where it has been." (Wayne Gretzky)

Posted on Tuesday, May 30, 2017 at 04:10PM by Registered CommenterCharlie in | CommentsPost a Comment | EmailEmail | PrintPrint