Digital Financial Reporting

Mathematics Magazine published an article written by David Ellerman, The Mathematics of Double Entry Bookkeeping, where Ellerman points out that double entry accounting is based on well-known mathematics construction from undergraduate algebra.  But Ellerman laments, "Mathematics and accounting truly seem to live in disjoint universes with no trespassing between them."

Well, I speculate that XBRL-based accounting, reporting, auditing, and analysis will join the universes of accounting and at least computer science if not mathematics. Digital distributed ledgers will likely have an impact also.  Some people seem to think double entry accounting is obsolete.  They probably don't understand the purpose of double entry accounting.

When you understand the scalers and vectors and know every financial reporting scheme uses the notion of articulation to intensionally and explicitly create the interrelationships between the four primary financial statements; you will recognize the leverage this offers.

When you understand that every real account on the trial balance has a roll forward, you see even more leverage.

When software engineers construct the right software, they can help accountants do accounting, reporting, auditing, and analysis in new and exciting ways.  No more toiling in the salt mines!

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Triple entry accounting (video)