Effective Automation of Record to Report Process (Iteration #4)

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” R. Buckminster Fuller

“Practice does not make perfect. Only perfect practice makes perfect.” Vince Lombardi

Aim of this Iteration:

• The aim of this iteration is to focus on the mechanical aspects.
• A few accounting logic errors exist in order to show that the mechanics can be working but the accounting logic (i.e. XBRL mappings) can be logically incorrect.
• The focus is on the primary financial statements, the policies and disclosure notes will be added in later iterations.
• The focus is on the chart of accounts and general journal entries in this iteration, will be expanded to more tables of the CDM in future iterations.
• The World Online Data (Microsoft Dynamics Sample Company) is known to have issues with the transaction data. Those issues will be worked around.

Preperation:

• Read Controlled Use of XBRL
• Read the Essence of Accounting
• Read the Accounting Basics (Accounting, Bookkeeping, Reporting
• Read Essentials of XBRL-based Digital Financial Reporting
• Watch this Video Playlist that Explains Financial Report Logical System
• Look at the End Result | Look at the End Result (Begin with the ending in mind)

Iteration Documentation:

• Documentation
• Slides

Steps:

1. Accounting system of an economic entity (Starting Point)
2. Create Complete XBRL Taxonomy to be Used by Report (Another Alternative Representation)
3. Mapping Accounting System Accounts to XBRL Concepts
4. Understanding Work Tags (Read this article about 'work tags')
5. WorkTags.jpg Apply Worktags to General Ledger Transactions
6. glTransactionsAndTrialBalance.zip (Trial Balance Generation)
7. Common Data Model (CDM)
• iteration2-instance-chartOfAccounts.xml CDM Chart of Accounts
• iteration2-instance-glDetail.xml CDM General Ledger Transactions
8. TWO_Local_Iteration4.zip Accounting System Data in CDM Database
9. mini_ModelStructure.html Report Writer
10. xbrl-gl-JournalEntries-Instance.zip Import Leaves and Branches to XBRL Instance Creator (NOTE: this is from a previous example, not updated for this iteration)
11. xbrl-gl-JournalEntries-Instance.zip Report Generation of XBRL-based Financial Reports (NOTE: this is from a previous example, not updated for this iteration)
• instance.xml (Raw XBRL Instance)
• instance-generated.html (Unformatted, auto generated, Inline XBRL Instance)
• instance.html (Formatted, auto generated, Inline XBRL Instance)
• instance-RENDERED.html (Formatted, auto generated, Inline XBRL Instance)
12. XBRL-based Financial Report Verification
• XBRL 2.1 Techical Specification Conformance Suite | XBRL Dimensions 1.0 Conformance Suite (XBRL International conformance suites have about 1500 tests used to verify that an XBRL processor is working correctly.)
• evidence-package/ (XBRL Cloud Evidence Package, combines numerous verification reports and capability to view report)
• Pesseract | UBmatrix XPE | XBRL Cloud XRun (XBRL technical syntax verification)
• XBRL Formula (Roll Forwards and Consistency Checks) | XBRL Calculations (Roll Ups) (Verification of the mathematical assocations between reported facts)
• XBRL Presentation Relations Model Structure (Verification of the assocations within the model represented as XBRL presentation relations which the XBRL technical syntax does not specify)
• Type-Subtype Assocations (Verification of the assocations between reported line items to be sure that such assocations are consistent with expectation)
• Fundamental Accounting Concept Relations (Verification of the fundamental accounting relations within the XBRL based report to make sure they are as specified)
• Disclosure Mechanics Relations (Verification of the construction of disclosures to be sure they are consistent with expectation)
• Reporting Checklist (Verification of the contents of the report to be sure everything that should have been reported has been reported)
• Manual "To do" Verification (Verification that must be performed manually because the task cannot be automated or rules have not been defined to enable automation.)
13. Common Audit Data Schedules (Coming soon!)

Common Data Model (CDM) XBRL Taxonomy and XBRL Instances

• CDM Web Site (This is on Charlie's server, needs to be moved to Engine B server)
• terms.xsd (CDM Terms)
• structures.xsd (CDM Structures)
• processes.xsd (CDM Terms)
• cdm-entryPoint.xsd (CDM Entry Point)
• iteration2-instance-chartOfAccounts.xml (XBRL Instance of Chart of Accounts Information in CDM XBRL Taxonomy Format)
• iteration2-instance-glDetail.xml (XBRL Instance of General Ledger Transactions Information in CDM XBRL Taxonomy Format)

Complete XBRL Taxonomy Set Used for Iteration #4:

• mini_ModelStructure.html (Basic visulization of XBRL Taxonomyter)
• mini.zip (Basic XBRL Taxonomy files)
• fundamental-accounting-concepts-relations.zip (XBRL Formulas for fundamental accounting concept relations rules and concept derivation rules)
• disclosures.zip (Disclosures XBRL Taxonomy, used for Disclosure Mechanics and Reporting Checklist)
• disclosure-mechanics.zip (Download all Disclosure Mechanics rules)
• reporting-checklist.zip (Download all Reporting Checklist rules)
• mini-def.xml (XBRL definition linkbase for type-subtype rules)
• reporting-checklist-rules-def.xml (XBRL definition linkbase for reporting checklist rules)
• modelStructure-rules-strict-def.xml (XBRL definition linkbase for model structure rules)
• NOTE: We are NOT focusing on proper modularization of XBRL taxonomy, we are focusing on what a complete XBRL taxonomy looks like, how to create it.

End Result, an XBRL-based Financial Report that was Autogenerated: (This includes the supporting XBRL taxonomy)

• instance.xml (Raw XBRL Instance Generated, rules not attached)
• instance_WithDisclosureRules.xml (Raw XBRL Instance Generated, all disclosure rules are attached to report)
• instance-generated.html (Inline XBRL, unformatted)
• instance-RENDERED.html (Inline XBRL, formatted)

Understanding Verification of XBRL-based Financial Report:

• XBRL Technical Syntax (This needs improvement) (Verifies that an XBRL-based financial report is created consistently with the 900 test of the XBRL specification and 500 test of XBRL dimensions specification)
• Model Structure Verification (Verifies that the report elements are organized in a manner that is permitted within XBRL presentation relations)
• Type-Subtype Verification (Verification that assocations between report elements are consistent with expectation)
• Disclosure Mechanics Verification (Verification that disclosures are created consistent with what has been specified for a diclosure)
• Fundamental Accounting Concept Relations Continuity Cross Checks (Verifies that the fundamental assocations between high level accounting concepts are consistent with expectation.)
• Reporting Checklist or Disclosure Rule (Verification that all disclosures that should have been provided have in fact been provided within an XBRL-based financial report.)
• Method (Wrapping all of the above into a repeatable process that can be used to verify that an XBRL-based report is properly functioning logical system.)