Mastering something is very hard work and you need to make sure you are mastering the right thing. It is an evolution, a progression. This graphic shows that evolution, that progression:
The Great Transmutation of financial accounting, reporting, auditing, and analysis is underway. The Evolution of a System provides a framework for understanding that change and my personal predictions.
If you want to master XBRL-based digital financial reporting, start here. You don't need to read each of the 1,692 posts to my blog. That was just a method for me to organize my brainstorming; my sensemaking activities.
But now my sensemaking activities are over and commercialization activities have begun. Maybe there will be a Universal Digital Financial Reporting Framework. That would be optimal in my view. There are 10 key things that are necessary to create a proper framework:
A financial reporting scheme represented digitally using an XBRL taxonomy which is then used to represent a report model for a report created by an economic entity in machine readable form serves multiple purposes:
Machine readable knowledge graphs of financial reporting schemes and financial reports are the next step in the evolution of financial reporting.
The Seattle Method is an approach I created to making XBRL-based digital financial reporting work effectively. Auditchain enhances the Seattle Method with the immutable digital distributed ledger "stuff" to take it to the next level, a possible candidate for a Universal Digital Financial Reporting Framework. The business case for a digital version of a general purpose financial report and the case for enhanced transparency are crystal clear. Modern accounting approaches can, and will, ultimately prevail.
Here is a summary of the information that I have to help accountants and software engineers understand XBRL-based digital financial reporting: (You might want to start with this playlist which provides a video overview of digital general purpose financial report)
Examples Reports:
Golden versions: The very best examples of XBRL taxonomies and reports creatied using the Seattle Method; Standard Business Report Model (SBRM) or Conceptual Model (CM). (SUMMARY)
These are the verification results from Pacioli verification on IPFS.
Here is a model good practices based XBRL-based reporting system. (Initial draft)
All this builds up to being able to create real financial reports using XBRL. Here is a 10-K financial report created by Microsoft to which I added additional rules: Auditchain Pacioli | XBRL Cloud Evidence Package.
Eventually, all of the above will be summarized, synthasized, organized, and then be available within one resource, Mastering XBRL-based Digital Financial Reporting. That resource will likely be redone by a professional writer eventually. You might want to check this resources page from time-to-time.
Software: Auditchain Suite; Pesseract; Luca (General)
Knowledge Portal Prototype (Here is the vision)
By the way. XBRL is useful for both financial information and nonfinancial information. See Lipsum example.
PLATINUM EXAMPLES: Simpler and improved versions of GOLDEN examples.