BLOG: Digital Financial Reporting
This is a blog for information relating to digital financial reporting. This blog is basically my "lab notebook" for experimenting and learning about XBRL-based digital financial reporting. This is my brain storming platform. This is where I think out loud (i.e. publicly) about digital financial reporting. This information is for innovators and early adopters who are ushering in a new era of accounting, reporting, auditing, and analysis in a digital environment.
Much of the information contained in this blog is synthasized, summarized, condensed, better organized and articulated in my book XBRL for Dummies and in the chapters of Intelligent XBRL-based Digital Financial Reporting. If you have any questions, feel free to contact me.
Entries from August 27, 2017 - September 2, 2017
Quarterly XBRL-based Public Company Financial Report Quality Measurement
The graphic below shows the results of my quarterly fundamental accounting concept relations continuity cross checks of XBRL-based financial reports of public companies which are submitted to the SEC.
I have been measuring specific fundamental accounting information of public company XBRL-based financial reports being submitted to the SEC for going on four years now. The quality of the information reported continually increases each time measurements are taken, which is a good sign.
But now in addition; what I am seeing is a specific set of filing agents/software vendors which have repeatable processes which are beginning to consistently yield high quality results per my specific measurements. In the graphic below you can see that Merrill, Thunderdome (RDG Filings), Donnelley Financial Solutions, and DataTracks each are creating 99% of the XBRL-based public company financial reports which are completely consistent with my full set of fundamental accounting concept relations continuity cross checks.
Those four filing agents/software vendors represent almost 30% of all public company filings to the SEC. Another four filing agents/software vendors are closing in on 99% of all their XBRL-based reports being consistent with these basic accounting relations.
This is NOT to say that entire reports are correct or that 99%, which is only approaching Sigma Level 4, is sufficient. My view is that the appropriate quality target is Sigma Level 6 which equates to 99.99966%. The important piece of information, I believe, is that reliable and repeatable processes are beginning to appear from multiple software vendors/filing agents. That statement is verifiable using empirical evidence of 100% of the filer population. This provides good information about what it takes to get XBRL-based reporting which uses the full power of extensibility offered by XBRL to work reliably and predictably.
People might want to reach out to these software vendors/filing agents to see how they achieve these results.
(Click image for larger view)
**********************PRIOR RESULTS**********************
Previous fundamental accounting concept relations consistency results reported: May 31, 2017; 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.
Charlie
in Becoming an XBRL Master Craftsman, Digital Financial Reporting
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