Digital financial reporting proof overview.

1. Digital Financial Report Proof
Charles Hoffman, CPA (Charles.Hoffman@me.com)
March 2, 2020

2. Digital Financial Reporting Proof
• Accounting equation logical system
• SFAC 6 Elements of Financial Statements logical system
• Provably properly functioning (consistent, complete, precise)
• Can keep in control
• Coverage of information patterns is insufficient

3. Digital Financial Reporting Proof
• Proof logical system adds 100% of possible information
patterns based on evidence from thousands and thousands of
XBRL-based financial reports submitted to the SEC

4. Sweet Spot
• Total reports: 6,023
• Total facts reported: 8,532,275
• Average number of facts per report: 1,416
• Total number of networks in all reports: 462,786
• Average number of networks per report: 77
• Total number of fact sets in all reports: 754,430
• Average number of fact sets per report: 125
• Average number of fact sets per network: 1.6
• Average facts per network: 18
• Average facts per fact set: 11
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5. Concept Arrangement Patterns
• Of the 754,430 Fact Sets found in the 6,023 reports that I
interrogated using automated machine-based processes, there
were:
– Text Blocks: 407,392 (54%) are text blocks (Level 1 Notes, Level 2 Policies,
Level 3 Disclosures)
– Sets: 181,063 (24%) are sets (or hierarchies, no mathematical
computations)
– Roll Ups: 120,708 (16%) are roll ups
– Roll Forwards: 37,721 (5%) are roll forwards
– Other (including Roll Forward Info, Adjustment, Variance): 7,546 (1%) are
Roll Forward Infos or something else
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6. Accounting Equation: Consistent, Complete, Precise
http://xbrlsite.azurewebsites.net/2020/core/master-ae/
• Very simple system that is properly functioning:
Balance Sheet

7. SFAC 6 Elements of Financial Statement
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http://xbrlsite.azurewebsites.net/2020/core/master-sfac6/Documentation.pdf

8. Proof Expands on SFAC 6
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http://xbrlsite.azurewebsites.net/2020/core/master-proof/Proof.pdf

9. Exists: Roll Up (Income Statement)
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10. Exists: Roll Forward (Changes in Equity)
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11. Exists: Arithmetic Expression (Balance Sheet)
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12. Articulation (Three statements interconnected)
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13. Add: Adjustment (Prior Period Error)
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14. Add: Variance (Budget to Actual Comparison)
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15. Add: Roll Forward Info (Information about a roll
forward)
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16. Add: Set (Financial Highlights)
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17. Add: Text Block (Accounting policies)
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18. Add: Member Aggregation (Segment Revenues)
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Interconnected Structures

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UBmatrix
XBRL Cloud
Fujitsu
Arelle (Open source)

21. Permutations/Combinations of 9 Patterns
• Anything added to an XBRL-based report is some
permutation/combination of those 9 patterns.
• Information is proven to be logically correct and consistent
with (a) expectation and (b) what XBRL processors expect
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