MASTERING XBRL-BASED DIGITAL FINANCIAL REPORTING

Accounting evolves. Prior to the invention of writing, transactions were documented using physical
objects. At one point, clay tablets were used. Then there was papyrus. Then there's paper. Then
there's e-paper, like PDF and HTML. Now comes machine-readable information. One of the most
effective and digitized database technology that greatly help the world of accountancy is the
eXtensive Business Reporting Language or simply XBRL. It is a software standard created to improve
the way financial data is communicated, making it easier to compile and share the data.

In the video, financial report is defined as a logical system. A logical system enables a community of
stakeholders trying to achieve a specific goal or objective or a range of goals/objectives to agree on
important common models, structures, and statements for capturing meaning or representing a
shared understanding of and knowledge in some universe of discourse. It consists of a collection of
models, structures, terms, associations, assertions, and facts. And also, there are two types of logical
system: properly functional and improperly functional logical system. First, we need to differentiate

the two by giving this example.

Accounting Equation. The accounting equation example includes three simple terms (Assets,
Liabilities, and Equity), one functional term (Balance sheet), and one rule (Assets = Liabilities and
Equity). This logical system has 3 facts. If it follows the rule (A = L+E), then this is properly functioning
because they are consistent, complete, and precise. If the equation is not equal, then it is not properly
functioning.

TERMS: Three simple terms: Assets, Liabilities, Equity.

STRUCTURES: Balance Sheet.

ASSOCIATIONS: The association between the three terms and the balance sheet structure are
provided. Some additional infrastructure report elements are provided to help organize the
representation:

ASSERTIONS: The mathematical relationship between the terms Assets, Liabilities, and Equity are
represented.
FACTS: We can create a set of facts to exercise the logical system. Facts representing Assets of
$5,000, liabilities of $1,000, and equity of $4,000 were created.

And so, the model above is used to explain the details of the human-readable representation that is
also machine-readable below in the alternative Inline XBRL format.

Conclusion: For many years, financial analysis has been digital; first via the electronic spreadsheet
and now with a wide range of options. The digital general purpose financial report is an improvement
that helps move the accounting profession forward. Given today's increasing volume, complexity, and
importance of financial information, providing such a digital alternative or option to current paper-
based reports makes perfect sense. Effectively, XBRL is about enabling the possibility of automating
certain tasks and processes involving the flow of information through financial information-related
systems.

REFERENCES:

http://xbrlsite.azurewebsites.net/2020/core/master-ae/Documentation.pdf

http://xbrl.squarespace.com/mastering-xbrl/

https://youtu.be/Vkm3VvCRM8E