Abstract

This resource is a logical theory which describes the logical patterns within a financial report.

Introduction

This resource is the landing page of the Logical Theory Describing Financial Report . This theory describes the logical patterns of a financial report. The objective is to provide a tool for modern accountancy; accountancy in a digital environment. (Modern Accountancy)

NOTE: This version of the Logical Theory Describing Financial Report is a working proof of concept. [THEORY] [OMG-SBRM] [KNOWLEDGE-GRAPH]

1. Terminology

The following provides formal definitions of the terms used to describe a financial report [FASB CON6].

1.1 Abstract

Abstract
A type of report element.

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1.2 Adjustment

Adjustment
A type of pattern. Origionally stated balance adjusted to restated balance.

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1.3 Arithmetic

Arithmetic
A type of mathematical pattern. Any form or arithmetic excluding roll up and roll forward.

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1.4 Aspect

Aspect
Another term used to describe dimension.

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1.5 Assertion

Assertion
A type of rule.

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1.6 Assurance

Assurance
Assurance types or levels provided on report.

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1.7 Audit

Audit
Highest level of assurance provided on financial report.

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1.8 Axis

Axis
Another term used to describe dimension.

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1.9 Block

Block
A type of report fragment, information oriented.

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1.10 Business Rules

Business Rules
Business rules is a type of view of a report fragment.

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1.11 Complilation

Complilation
Lowest level of assurance provided on financial report.

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1.12 Component

Component
A type of report fragment, information oriented.

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1.13 Concept

Concept
A type of report element.

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1.14 Concept Arrangement Pattern

Concept Arrangement Pattern
A concept arrangement pattern is the arrangement of concepts and abstracts within a line items.

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1.15 Consistency Rules

Consistency Rules
Consistency rules are relations between fundamental accounting concepts.

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1.16 Constraint

Constraint
A type of rule.

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1.17 Cube

Cube
Another term used to describe a hypercube; equivalent to Hypercube

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1.18 Derivation Rules

Derivation Rules
Derivation rules are used to logically derive fundamental accounting concepts that are not explicitly reported.

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1.19 Dimension

Dimension
A type of report element.

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1.20 Disclosure

Disclosure
A type of report fragment, financial reporting oriented.

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1.21 Disclosure Mechanics

Disclosure Mechanics
Disclosure mechanics describes the mechanical aspects of a specific disclosure.

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1.22 Disclosure Rules

Disclosure Rules
Disclosure rules are used to specify when a disclosure is required to be provided within a financial report.

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1.23 Element

Element
An element (a.k.a. report element) is used to represent a fact and used by a rule.

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1.24 Exemplar

Exemplar
An exemplar is an instance of a specific disclosure that exists within some other financial report.

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1.25 Fact

Fact
A fact is something that is reported.

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1.26 Fact Table

Fact Table
A fact table is a type of view of a report fragment.

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1.27 Financial Report

Financial Report
Financial report is a set of facts that is reported organized into fragments of information.

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1.28 Financial Report Set

Financial Report Set
A financial report set is a collection of financial reports.

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1.29 Fragment

Fragment
A fragment is a set of facts that go together for some reason.

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1.30 Fundamental Accounting Concepts

Fundamental Accounting Concepts
The fundamental accounting concepts are the high level elements used to create a financial report.

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1.31 General Information

General Information
The general information includes the nature of business, basis of reporting, etc.

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1.32 Hypercube

Hypercube
A type of report fragment, technical oriented; relates to XBRL.

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1.33 Infon

Infon
Another term used to describe fragment.

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1.34 Information Model

Information Model
An information model is the arragment of members within a dimension and arrangement of concepts and abstracts within a set of line items.

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1.35 Level

Level
A level is a way a disclosure can be provided.

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1.36 Level 1 Note Text Block

Level 1 Note Text Block
A level 1 note text block is a type of level used by the SEC.

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1.37 Level 2 Policy Text Block

Level 2 Policy Text Block
A level 2 policy text block is a type of level used by the SEC.

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1.38 Level 3 Disclosure Text Block

Level 3 Disclosure Text Block
A level 3 disclosure text block is a type of level used by the SEC.

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1.39 Level 4 Disclosure Detail

Level 4 Disclosure Detail
A level 4 disclosure detail is a type of level used by the SEC.

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1.40 Line Items

Line Items
A type of report element. Equivalent to a dimension.

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1.41 Member

Member
A type of report element.

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1.42 Member Aggregation

Member Aggregation
A type of pattern. Equivalent to roll up but expressed using dimensions.

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1.43 Member Arrangment Pattern

Member Arrangment Pattern
A member arrangement pattern is the arrangment of members within a dimension.

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1.44 Member Nonaggregation

Member Nonaggregation
A type of pattern. Equivalent to a set but expressed using dimensions.

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1.45 ModelStructure

ModelStructure
A model structure is a type of view of a report fragment.

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1.46 Network

Network
A type of report fragment, technical oriented; relates to XBRL.

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1.47 Note

Note
An oranized set of fragments which include disclosures. Amplifies of further describes information.

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1.48 Notes

Notes
The notes contain deailed disclosures for financial accounts, broad transaction categories, and other information.

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1.49 Parenthetical Explanation

Parenthetical Explanation
Parenthetical information provided to further describe a fact.

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1.50 Policies

Policies
The policies provides information about how financial report is created.

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1.51 Policy

Policy
A type of disclosure.

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1.52 Primary Financial Statements

Primary Financial Statements
The primary financial statements are the balance sheet, income statement, changes in equity, cash flows statement.

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1.53 Primary Items

Primary Items
Another term used to describe LineItems.

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1.54 Rendering

Rendering
A rentering is a type of view of a report fragment.

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1.55 Report Elements

Report Elements
Report elements is a type of view of a report which lists the terms.

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1.56 Reporting Style

Reporting Style
A reporting style is an approach to represeting the primary financial statements.

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1.57 Restriction

Restriction
A type of rule.

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1.58 Review

Review
Medium level of assurance provided on financial report.

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1.59 Roll Forward

Roll Forward
A type of mathematical pattern. Addition of a set of numbers to some total.

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1.60 Roll Forward Info

Roll Forward Info
A type of pattern. Similar to roll forward but about a roll forward, not mathematically related.

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1.61 Roll Up

Roll Up
A type of mathematical pattern.

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1.62 Rule

Rule
A rule is a constraint.

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1.63 Set

Set
A type of pattern.

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1.64 Statement

Statement
A type of disclosure.

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1.65 Supplemental Information

Supplemental Information
Supplemental information that is not considered part of the actual primary financial statements or notes.

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1.66 Table

Table
Another term used to describe hypercube.

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1.67 Template

Template
A template is an instance of a specific disclosure.

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1.68 Textblock

Textblock
A type of pattern. Prose or any sort.

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1.69 Topic

Topic
Topics are a way to organize disclosures.

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1.70 Type-subtype Rules

Type-subtype Rules
The type-subtype rules explain the relations between report elements. Also known as wider-narrower or general-special relations.

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1.71 Variance

Variance
A type of pattern. Relates to expressing or differentiating reporting scenarios.

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1.72 Verification Results

Verification Results
Verification results is a type of view of a report fragment.

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1.73 View

View
A view is a way of looking at a fragment.

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2. References

The following is a summary of normative and informative references helpful in understanding this information:

2.1 Normative references

[OMG-SBRM]
Standard Business Report Model (SBRM). Object Management Group (OMG). Retrieved June 2004. URL: https://www.omg.org/intro/SBRM.pdf
[FASB-CON6]
Elements of Financial Statements. Financial Accounting Standards Board (FASB). 2004. URL: https://www.fasb.org/Page/document?pdf=aop_CON6.pdf&title=CON%206%20(AS%20AMENDED)
[XBRL-ACCOUNTING-ARCROLES]
Accounting Semantics Arcroles. XBRL International. January 2023. URL: https://www.xbrl.org/REQ/accounting-semantics-req/REQ-2023-01-04/accounting-semantics-req-2023-01-04.html

2.2 Informative references

[KNOWLEDGE-GRAPH]
Financial Report Knowledge Graph. Charles Hoffman, CPA. June 3, 2024. URL: https://xbrlsite.azurewebsites.net/2021/Library/FinancialReportKnowledgeGraphs.pdf
[INFORMATICS-ACCOUNTANCY]
Informatics for Accountancy. Charles Hoffman, CPA. June 3, 2024. URL: https://twinfox.io/xbrl/2024/library/InformaticsForAccountancy.pdf
[ACCOUNTING-EQUATION]
Accounting Equation. Wikipedia. Retrieved June 10, 2024. URL: https://en.wikipedia.org/wiki/Accounting_equation
[FINANCIAL-STATEMENT]
Financial Statement. Wikipedia. Retrieved June 12, 2024. URL: https://en.wikipedia.org/wiki/Financial_statement
[THEORY]
Logical Theory Describing Financial Report (Terse). Charles Hoffman, CPA. November 10, 2021. URL: http://xbrlsite.com/seattlemethod/LogicalTheoryDescribingFinancialReport_Terse.pdf
[METHOD]
Seattle Method. Charles Hoffman, CPA. April 4, 2024. URL: http://xbrlsite.com/seattlemethod/SeattleMethod.pdf
[FRAMEWORK]
Framework (Seattle Method). Charles Hoffman, CPA. April 4, 2024. URL: http://xbrlsite.com/seattlemethod/Framework.pdf
[PIECES]
Pieces of Financial Report (Seattle Method). Charles Hoffman, CPA. June 15, 2024. URL: http://xbrlsite.com/seattlemethod/FinancialReportPieces.html
[ACCOUNTING-ORACLE-MACHINE]
Accounting Oracle. Charles Hoffman, CPA. June 15, 2024. URL: https://xbrlsite.azurewebsites.net/2024/prototypes/oracle/oracle.html