e-Financial Statement with multiple standards using XBRL
We recognize that there are so many categories of companies, tangible vs intangible products, manufacturing vs distributors, small vs large, holding vs subsidiaries, public vs private, profit vs non-profit entities, international vs local, etc not mentioning different companies would fall into different configurations of the categories.
But users of the financial statements wanted to use the financial statements to grasp the relativity of the company's state with other companies, and so, accountants are expected to have the expertise to create a financial statement that could embody the solution of this need of the information.
Until now multiple accounting standards organization created their accounting standards as guidance for their members to achieve this comparability utility. However the ever-increasing magnitude of complexity and fluidity of the world, in respect to ever-changing needs, technologies, laws, market demographics, etc made me skeptical of the ability of one standard to be able to accommodate all of these overwhelming points of views.
But we already have the programming technology and the XBRL For you who have never heard of XBRL, it is a protocol that could be followed by accounting programs to communicate with each other, like contents on the internet followed some standardized protocols so they could be conveyed and understood by reader machines in order to then be displayed to other human beings as accurately as they appeared in the original.
Using XBRL, makers of the financial statements and the auditors could work to make multiple financial statements for one company, based on different accounting standards, compacted into a format that would enable users to switch between the interpretations instantly.
Then accounting standards organization wouldn't have to compete to be the "ONE" organization that oversees the only "ONE" accounting standard used in the world. That would be a bad idea. Instead, let's have many standards organization competing to be most liked by some demographics of users of the financial statements.
To summarize some of the advantages of this idea:
1. Users of the financial statements could compare different companies in many more ways of their choice.
2. Accountants have more reason to collaborate with other accountants and IT professionals, leaving the expectation for an accountant to must master everything obsolete.
3. Increased accuracy in decision making due to the availability of more perspectives of analysis.
But users of the financial statements wanted to use the financial statements to grasp the relativity of the company's state with other companies, and so, accountants are expected to have the expertise to create a financial statement that could embody the solution of this need of the information.
Until now multiple accounting standards organization created their accounting standards as guidance for their members to achieve this comparability utility. However the ever-increasing magnitude of complexity and fluidity of the world, in respect to ever-changing needs, technologies, laws, market demographics, etc made me skeptical of the ability of one standard to be able to accommodate all of these overwhelming points of views.
But we already have the programming technology and the XBRL For you who have never heard of XBRL, it is a protocol that could be followed by accounting programs to communicate with each other, like contents on the internet followed some standardized protocols so they could be conveyed and understood by reader machines in order to then be displayed to other human beings as accurately as they appeared in the original.
Using XBRL, makers of the financial statements and the auditors could work to make multiple financial statements for one company, based on different accounting standards, compacted into a format that would enable users to switch between the interpretations instantly.
Then accounting standards organization wouldn't have to compete to be the "ONE" organization that oversees the only "ONE" accounting standard used in the world. That would be a bad idea. Instead, let's have many standards organization competing to be most liked by some demographics of users of the financial statements.
To summarize some of the advantages of this idea:
1. Users of the financial statements could compare different companies in many more ways of their choice.
2. Accountants have more reason to collaborate with other accountants and IT professionals, leaving the expectation for an accountant to must master everything obsolete.
3. Increased accuracy in decision making due to the availability of more perspectives of analysis.
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