Chpt.3 The XML-Based Web Languages and Accounting: Mata Kuliah: Sistem Informasi Akt. Lanjutan

Chpt.
3
The XML-Based
Web Languages and
Accounting
MATA KULIAH: SISTEM INFORMASI AKT. LANJUTAN
SGML
(Standard General Markup Language)
• A great variety of documents (ex. web): articles, catalogues, lists, data tables etc..
• Each document has its logical structure (article: title , author, data,..). The standard format used for all documents
is ASCII, but different conventions are used in representing information ( ex.name and surname or vice versa,
different number of bytes reserved , name delimited by “$”..).
• The management of the archive is difficult. (searching for a text, for the author name or for all its the books,..)
• It is necessary to adopt a standard markup language. A markup language defines how documents should be
formatted.
SGML
(Standard General Markup Language)
• In the early days of computer type setting, there were many different typesetting systems, and
each used its own proprietary markup language.
• This language consisted of special control characters to indicate the beginning and the end of
some formatting.
• SGML (Standard General Markup Language). developed in 1986 by International
Organization for Standardization (ISO) .
• SGML is a metalanguage: a language that describes a formatting and markup language.
• HTML (Hyper Text Markup Language) is the first simplified language deriving by SGML It is
characterize by a set of tags and rules for their use.
HTML
( Hypertext Markup Language)
• HTML is a markup language.
• Markup:
• Embedded codes in documents
• Codes are called `tags’
• Codes
• Describe the structure documents
• Include instructions for processing
• HTML was originally a SGML application

HTML
( Hypertext Markup Language)
• A tag appears as a tag name bracketed by less-than and greater than symbols:
<TAGNAME>
• The corresponding tag used to end an operation begins with two- character
sequence less-than and slash and ends with a greater than- symbol:
</TAGNAME>
XML
(eXtensible Markup Language)
• XML stands for eXtensible Markup Language.
• A markup language is used to provide information about a
document.
• Tags are added to the document to provide the extra information.
• HTML tags tell a browser how to display the document.
• XML tags give a reader some idea what some of the data means.
What is XML Used For?
• XML documents are used to transfer data from one place
to another often over the Internet.
• XML subsets are designed for particular applications.
• One is RSS (Rich Site Summary or Really Simple
Syndication ). It is used to send breaking news bulletins
from one web site to another.
• A number of fields have their own subsets. These include
chemistry, mathematics, and books publishing.
• Most of these subsets are registered with the
W3Consortium and are available for anyone’s use.
XML
HTML is used to mark up XML is used to mark up

text so it can be displayed to data so it can be processed
users by computers
HTML describes both XML describes only
structure (e.g. , <h2>, content, or “meaning”
) and appearance (e.g.
 , , )
HTML uses a fixed, In XML, you make up

unchangeable set of tags your own tags
XML
• HTML and XML look similar, because they are both SGML
languages (SGML = Standard Generalized Markup Language)
• Both HTML and XML use elements enclosed in tags (e.g. <body>This
is an element</body>)
• Both use tag attributes (e.g.,
)
• Both use entities (<, >, &, ", ')
• More precisely,
• HTML is defined in SGML
• XML is a (very small) subset of SGML
Difference Between HTML and XML
• HTML is for humans
• HTML describes web pages
• You don’t want to see error messages about web pages you visit
• Browsers ignore and/or correct as many HTML errors as they
can, so HTML is often sloppy
• XML is for computers

• XML describes data
• The rules are strict and errors are not allowed
• In this way, XML is like a programming language
• Current versions of most browsers can display XML
• However, browser support of XML tends to be inconsistent
Difference Between HTML and XML
• HTML tags have a fixed meaning and browsers know what it is.
• XML tags are different for different applications, and users know
what they mean.
• HTML tags are used for display.
• XML tags are used to describe documents and data.
XML and HTML
XML Rules
• Tags are enclosed in angle brackets.

• Tags come in pairs with start-tags and end-tags.
• Tags must be properly nested.
• <name><email>…</name></email> is not allowed.
• <name><email>…</email><name> is.
• Tags that do not have end-tags must be terminated by a ‘/’.
• is an html example.
XML
<?xml version="1.0"?>
<weatherReport>
<date>7/14/97</date>
<city>North Place</city>
<state>NX</state>
<country>USA</country>
High Temp: <high scale="F">103</high>
Low Temp: <low scale="F">70</low>
Morning: <morning>Partly cloudy, Hazy</morning>
Afternoon: <afternoon>Sunny & hot</afternoon>
Evening: <evening>Clear and Cooler</evening>
</weatherReport>
Valid XML
• A DTD (Document Type Definition) defines what tags are legal and where they
can occur in the XML
• An XML document does not require a DTD
• XML is well-structured if it follows the rules given earlier

• In addition, XML is valid if it declares a DTD and conforms to that DTD
• A DTD can be included in the XML, but is typically a separate document
• Errors in XML documents will stop XML programs

• Some alternatives to DTDs is XML Schemas
DTD and Schemas
<!ELEMENT address (name, email, phone, birthday)> <?xml version="1.0" encoding="ISO-8859-1" ?>
<!ELEMENT name (first, last)> <xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema">

<xs:element name="address">
<!ELEMENT first (#PCDATA)>
<xs:complexType>
<!ELEMENT last (#PCDATA)>
<xs:sequence>
<!ELEMENT email (#PCDATA)> <xs:element name="name" type="xs:string"/>
<!ELEMENT phone (#PCDATA)> <xs:element name="email" type="xs:string"/>
<!ELEMENT birthday (year, month, day)> <xs:element name="phone" type="xs:string"/>
<!ELEMENT year (#PCDATA)> <xs:element name="birthday" type="xs:date"/>

</xs:sequence>
<!ELEMENT month (#PCDATA)>
</xs:complexType>
<!ELEMENT day (#PCDATA)>
</xs:element>
</xs:schema>
Viewing XML
• XML is designed to be processed by computer programs, not to be
displayed to humans
• Nevertheless, almost all current browsers can display XML documents
• They don’t all display it the same way
• They may not display it at all if it has errors
• For best results, update your browsers to the newest available versions
• Remember:
HTML is designed to be viewed,
XML is designed to be used
Vocabulary
• SGML: Standard Generalized Markup Language
• XML : Extensible Markup Language
• DTD: Document Type Definition
• element: a start and end tag, along with their contents
• attribute: a value given in the start tag of an element
• entity: a representation of a particular character or string
• PI: a Processing Instruction, to possibly be used by a program that
processes this XML
• namespace: a unique string that references a DTD
• well-formed XML: XML that follows the basic syntax rules
• valid XML: well-formed XML that conforms to a DTD
XBRL:
eXtensible Business Reporting Language
• XBRL is a freely available electronic language for financial reporting.
• XBRL provides an XML-based framework that the global business information
supply chain can use to create, exchange, and analyze financial reporting
information including, but not limited to, regulatory filings such as annual
and quarterly financial statements, general ledger information, and audit
schedules.
• XBRL is not about establishing new accounting standards but enhancing the
usability of the ones that we have through the digital language of business.
• XBRL will not require additional disclosure from companies to outside
audiences.
XBRL:
• An XBRL-based financial statement is a digitally enhanced version of paper-
based financial statements, which include the balance sheet, income
statement, statement of equity, statement of cash flows, and the notes to
the financial statements as well as the accountant's report.
• XBRL documents can be prepared efficiently, exchanged reliably, published
more easily, analyzed quickly, retrieved by investors simply, and enables
smarter investments.
• Other potential XBRL applications include tax returns, regulatory filing,
general ledger, authoritative literature, and management reporting.
XBRL:
• An XBRL-based financial statement is a digitally enhanced version of paper-
based financial statements, which include the balance sheet, income
statement, statement of equity, statement of cash flows, and the notes to
the financial statements as well as the accountant's report.
• XBRL documents can be prepared efficiently, exchanged reliably, published
more easily, analyzed quickly, retrieved by investors simply, and enables
smarter investments.
• Other potential XBRL applications include tax returns, regulatory filing,
general ledger, authoritative literature, and management reporting.
XML and XBRL
• XML is like HTML but a bit cleverer
• • A browser knows (from a Stylesheet) how to display it
• • Other programs can process it too
• • It’s all about tagging
XML and XBRL
• eXtensible Business Reporting Language
• Freely licensed standard, originated in
• accountancy profession
• It is XML – and cleverer still
• As well as tagging data items
• o it can show relationships
• o … and how they have been calculated
• o Uses a taxonomy
Financial Reporting Process Without/With XBRL
Why XBRL?
What are the Benefits of XBRL for Financial
Statements?
With XBRL, information will be entered once and the same information will be
"rendered" as
• a printed financial statement,
• an HTML document for a Web site,
• an EDGAR filing file for SEC,
• a raw XML file, or
• a specialized reporting format such as periodic banking and other regulatory
reports.
What are the Benefits of XBRL for Financial
Statements?
Specific benefits of XBRL include:
• Allows users to quickly access the information they need
• Permits the automatic and reliable exchange of financial information
• Does not require a change to accounting standards or disclosure policies
• Eliminates the need to reenter data for different users
• Lowers the cost to prepare and distribute financial statements
• Allows accountants to quickly and easily consolidate and scrutinize internal data for use
in financial reports
• Enhances transparency of financial reporting
Who will benefit from using XBRL?
• Companies who prepare financial statements: More efficient preparation of financial statements
because they will be created one time and rendered as printed reports, on Web sites, as Edgar
filings, or as other regulatory filings.
• Analysts, Investors, and Regulators: Enhanced distribution and usability of existing financial
statement information. Automated analysis, significantly less re-keying of financial information
from one form into another form, receiving information in the format you prefer for your specific
style of analysis.
• Financial publishers and data aggregators: More efficient data collection lowers operating costs
associated with custom, idiosyncratic data feeds and reducing errors while concentrating on adding
value to the data and increasing transaction capacity
• Independent Software Vendors: Virtually any software product that manages financial information
could use XBRL for its data export and import formats, thereby increasing its potential for full-
interoperability with other financial and analytical applications.
Three Requirements for the
Successful Deployment of XBRL
• Creation of a specification that is the same for all companies that
is consistent from one financial statement to another.
• An application that will allow the creation of financial statements
”tagged” with XML that adhere to the specifications.
• Style sheets which render information for a specific or variety of
formats.
XBRL for financial statements will provide agreement on the
terms used by establishing uniform categories for financial data.
Yet, the system remains flexible to accommodate any company’s
internal environments, processes, systems, and even styles.
Impact of Technology on the Global Accountancy
Profession
• Journal of Accountancy: “Technology is poised to transform the accounting

profession. Artificial intelligence, robotics, and blockchain are on the verge of
automating many traditional core CPA tasks. The profession is at a critical
moment, one from which it will emerge in a far different form.”
• Artificial intelligence, blockchain and other technologies are poised to reshape
the accounting landscape.
Impact of Technology on the Global Accountancy
Profession
• While what goes into financial reports is not really changing, how information is
conveyed by that report is changing a lot. Paper-based and even electronic
versions of financial reports were not understandable by computer processes.
But XBRL-based structured digital financial reports are understandable by
machines.
Three Technology Trend
There are three specific new technologies that can be leveraged to significantly improve and modernize
accounting and financial reporting
• XBRL-based structured digital financial reports: The general purpose financial report is getting a face lift
for the digital age. In the past, general purpose financial reports were readable only by humans. In the
future, general purpose financial reports will be human-readable and machine-readable.
• Knowledge-based systems and other application of artificial intelligence: 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 in the Digital Age; by human and computer
teamwork. Humans 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. In the first industrial revolution, steam engines amplified the power
of or muscles. In the fourth industrial revolutions, computers will amplify the power of our brains.
Three Technology Trend
Blockchain-based digital distributed ledgers: Many people say that blockchain will enable
"triple-entry" accounting. So what is a digital distributed ledger? A digital distributed
ledger is an indestructible and uneditable decentralized computer record, or ledger. It
provides a full and complete history of transactions in that ledger. Ledgers can be as public
and open or private, limited, or confidential as the use case demands. Ledgers can be
permissioned or permission-less in determining who can add new transactions. Different
approaches can be used to determine how new transactions are authorized (proof-of-stake,
proof-of-work, consensus, identity mechanisms) before they can update the ledger. Ledgers
can be interlinked with one or more other ledgers.
How do you actually make digital financial
reporting work?
• Professional accountants have to understand that this is an engineering process.
• Professional accountants need to understand a few things about knowledge engineering.
• Professional accountants need to understand how a problem solving logic works and how the rules
and logic interact to make computers do their work.
• This will help them understand how to get computers to serve their needs.
• Second, you have to have a framework and theory to think about digital financial reports. Without a
framework and theory, all that you have to work with is the XBRL technical syntax. That will not
work because that level of digital financial reporting is too technical and impossible for the average
business professional or professional accountant to understand.
• That is why professional accountants need to learn a few new things and understand the framework
and theory of a digital financial report.
Broader Trend of Digital Business Reporting
The objective of Industry 4.0 is to increase the flexibility of existing value chains by
maximizing the transparency of inbound and outbound logistics, manufacturing,
marketing, and all other business functions such as accounting, legislation, human
resource, etc.”
Basically, what Industry 4.0 means is that technologies will be used to dramatically
improve the efficiency and effectiveness of businesses and other organizations.
XBRL in the future
• Most professional accountants still don’t understand how to correctly convey the meaning
represented by the complex logical information which makes up a financial report in the
machine-readable XBRL structured format.
• Most professional accountants still don’t understand how to create the business rules that help
make sure they did not make mistakes in conveying that meaning.
• Most professional accountants are not leveraging currently available technologies to automate
things such as financial reporting and disclosure checklists.
• Most certified public accountants don’t really understand how to audit information conveyed
by an XBRL-based structured digital financial report.
• But all that is slowly changing.
XBRL in the future
• XBRL's role in Industry 4.0. “To facilitate information exchange and analysis in Audit
4.0, regulators and standardization agencies should create suitable standards that
define the formats and naming rules of commonly used data.”
• “In addition, business processes will be monitored against pre-determined rules to
detect violations of key controls, and cross-verified via certain continuity equations.”
• For increased efficiency and effectiveness in business processes to be realized,
business information exchange will need to work correctly. For meaningful machine-
based information exchange to work, you need pre-determined rules relating to
technical syntax, domain semantics, and workflow.
XBRL in the future
• Intelligent XBRL-based digital financial reporting products collect information
about financial report creation projects and allow this information to be
coordinated across all other representations of the project, so that every
statement, policy, and disclosure is based on internally consistent and complete
information from the same underling financial information database. Risk of
noncompliance is minimized. Cost of compliance is minimized. Effort to comply
is minimized.
Thank you

Chpt.3 The XML-Based Web Languages and Accounting: Mata Kuliah: Sistem Informasi Akt. Lanjutan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chpt.3 The XML-Based Web Languages and Accounting: Mata Kuliah: Sistem Informasi Akt. Lanjutan

Uploaded by

Copyright:

Available Formats

Chpt.

• HTML was originally a SGML application

HTML is used to mark up XML is used to mark up

HTML uses a fixed, In XML, you make up

• XML is for computers

• Tags are enclosed in angle brackets.

• XML is well-structured if it follows the rules given earlier

• Errors in XML documents will stop XML programs

<!ELEMENT name (first, last)> <xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema">

<!ELEMENT year (#PCDATA)> <xs:element name="birthday" type="xs:date"/>

• Journal of Accountancy: “Technology is poised to transform the accounting

You might also like