The document discusses characteristics in financial reports. It states that characteristics describe facts and lists some common characteristics like reporting entity, legal entity, period, and concept. Characteristics can also be related to each other in complex ways through hierarchies and partial/complete sets.

1. Understanding Characteristics
Financial Report Semantics and
Dynamics Theory

2. Overview
• Characteristics
– Characteristics describe facts
– Characteristics common to financial reports
– Characteristics may be related

3. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

4. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

5. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

6. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

7. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

8. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

9. Characteristics Describe Facts
Reporting entity Legal entity Period Concept Value
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Revenues 2000
ABC Company Consolidated entity Jan 1, 2011 to Dec 31, 2011 Net income 1000
Characteristics describe facts.
For example, the two facts shown have the
characteristics “reporting entity”, “legal entity”,
“period” and “concept”.

10. Characteristics Common to Financial Reports
• Reporting entity – for example “Microsoft” or “Google”
• Legal entity – for example “Consolidated entity” or “Parent holding company”
• Report date – for example some audit report date or filing date
• Reporting scenario – for example “actual”, “budgeted”, or “forecast”
• Concept – for example “Cash and cash equivalents”, “Assets”, “Inventory valuation
method” or “Nature of business”
• Period – for example “December 31, 2011” or “December 31, 2010”
• Business segment – for example “Consolidated entity”, “consolidation
eliminations”, “Business segment ABC” or “Business segment XYZ”
• Geographic area – for example “Europe”, “Asia”, or “South America”
• Operating activities – for example “Continuing operations” or “Discontinued
operations”
This is a subset of characteristics common to
financial reports; there are others.

11. Characteristics May be Related
• Partial Set – does not provide the complete set of possible
options, therefore these cannot be added
• Complete flat set – provides a complete, flat list,
therefore these can be added
• Complete hierarchical set – provides a complete list,
but the list has some hierarchy to it
• Complete complex set – provides a complete list and
the list is a complicated hierarchy
For more information on this topic please watch the
videos “Relations between characteristics” and
“Relations between concepts”.

12. Summary
• Characteristics
– Characteristics describe facts
– Characteristics common to financial reports
– Characteristics may be related