Prototype

The purpose of this prototype is to put 100% of the pieces of the puzzle together. It is NOT about making the process of going from one step to the next step actually work; it is about (a) articulating all of the steps and (b) specifying the requirements that must be met at each step. After all the pieces of the puzzle and the requirements are specified, the NEXT objective is to get all of these pieces working together EFFECTIVELY. Nothing about this process relates to doing any of this effeciently at this point. Effeciency can be addressed AFTER effective processes have been created and proven to work.

STEPS

1. Reporting XBRL Taxonomy Created: First a reporting taxonomy is created that describes the general approach used by an organization reports per some financial Reporting scheme. Ultimately, the reporting XBRL taxonomy is used to create (a) the chart of accounts and (b) the transaction change grouping codes.Information about reporting taxonomy prototype
2. Transaction Entry: This is a form for entering a transaction into a general ledger of an accounting system. Transactions can be entered (a) manually or (b) using automated processes where one machine communicates to another machine.
3. Transaction Entry Form Prototype: This is prototype of a transaction entry form. (This does not work the way it needs to work yet.)
4. General Journal: This is a general journal. Accounting entries go into the general journal. This general journal has 8 transactions posted to it.
5. General Journal by Entry: Here are those entries in human-readable form.
6. Summary of Transactions by Account: Here are those entries grouped by account.
7. Summary of Transactions by Change Code: Here are those entries grouped by the change the transaction causes.
8. General Journal Entries in XBRL (XBRL GL style): Information can be dumped out of an accounting system. Here are the transactions being dumped out in machine-readable form using XBRL Global Ledger syntax.
9. General Journal Entries in XBRL (XBRL Dimensions Typed Members style): Here is infomation being dumped out in machine-readable form using XBRL Dimensions style syntax.(Here is the XBRL taxonomy for this approach. download)
10. Financial Statement (machine readable): Here is information being dumped out in machine-readable form summarized and organized into a financial statement. This is EXACTLY the same transactions except information is aggregated and oganized.
11. Financial Statement: Here is a human-readable version of EXACTLY the same information.
12. Public Documentation: Note that EACH TRANSACTION has publically avaiable documentation. This is EVIDENCE or PROOF of the transaction.
13. Example Distributed Ledger Documentation OPTION 1: This is an example of documentation within a digital distributed ledger. This is EVIDENCE or PROOF of the transaction.
14. Example Distributed Ledger Documentation OPTION 2: This is an example of documentation within a digital distributed ledger. This is EVIDENCE or PROOF of the transaction.

REQUIREMENTS

• No Inconsistencies or Contridictions in XBRL-based report: The four primary financial statements are tied together. Contridictions and inconsistencies MUST NOT exist.
• Mathematical Computations Consistent with Expectations: 100% of the mathematical computations in a report MUST (a) be described and (b) verified to be consistent with the description.
• Items reported MUST be consistent with the classifications and subclassifications of the financial reporting scheme used.
• Public Documentation of Tranactions: Transactions MUST be publically documented and verified with the transaction counterparty in a digital distributed ledger.
• Financial Statement Human and Machine Readable: Financial statements MUST be both human-readable and machine-readable. The meaning conveyed by both versions MUST be the same.
• Independent Third Party Verification: All information will be subject to third-party verificaiton probably by an auditor of some sort.
• Variety of Financial Reporting Schemes: A variety of different financial reporting schemes will likely be used including US GAAP, IFRS, or other financial reporting schemes.