Financial reporting comparability: toward an XBRL ontology of the FASB/IFRS conceptual framework

  • Authors:

  • Mitchell R. Wenger;Manoj A. Thomas;Jeffry Stephen Babb

  • Affiliations:

  • Patterson School of Accountancy, University of Mississippi, 200 Conner Hall, Oxford, MS 38677, USA;Department of Information Systems, Virginia Commonwealth University, 301 W Main St, Richmond, VA 23284, USA;Department of Computer Information and Decision Management, West Texas A&M University, 2403 Russell Long Blvd., Canyon, TX 79016, USA

  • Venue:
  • International Journal of Electronic Finance
  • Year:
  • 2013

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Abstract

As a mechanism for the exchange, transmission, and reporting of accounting and financial data, eXtensible Business Reporting Language XBRL makes great strides toward standardisation. However, given the global nature of contemporary financial markets, XBRL reporting must transcend or accommodate differences in reporting standards. Presently, the two standards for XBRL reporting, the US Generally Accepted Accounting Principles US GAAP or International Financial Reporting Standards IFRS, make reconciling meanings between these standards a laborious and error-prone affair. As the audience for this reporting often spans countries and cultures, many have a stake in digesting XBRL-formatted financial reports. This paper addresses the question of how cross-cultural and transnational consumers of XBRL statements can derive meaning from these reports. We present an ontological approach toward solving this problem which includes a financial reporting ontology and associated architecture for comparing concepts across XBRL taxonomies. The architecture is explained, evaluation criteria offered, and future research approaches toward realising artefacts using this architecture are proffered.