Conversion of data from a symbolic form into a format readable by the user; the reverse of encoding
AGAIN: Investors would expect both the human-readable layer as well as the machine-readable layer of this single document to be audited and verified by an independent third party -- especially if specific data elements are being reviewed and included in other external reports.
Meaning evidence based data is not in a machine-readable format using one common accounting standard for government financial reporting to provide better data analytics to make evidenced based decisions
This global digital reporting format requires the use of the XBRL global data format that makes financial reports machine-readable for better data analytics and fraud protection on the new cloud-based data platform across the EU
According to the article in FCW: “ The IRS is taking a step to open data on the financials of tax-exempt organizations… in machine-readable XML format.”
Over the years the IMA has championed the use of XBRL as a machine-readable data format for financial reporting to promote greater transparency and accountability to support economic growth and new jobs in the capital markets. ESMA states in its disclosed press release that it has concluded that Inline XBRL is the most suitable technology to meet the EU requirement for issuers to report their annual financial reports in a single electronic format because it enables both machine and human readability in one document
Accountants want to be able to get inside these large, complex documents and extract specific data elements – especially financial data elements - using a structured, machine-readable format - for better data analytics
In the United States the Government Accountability Office (GAO) reported that federal agencies exceeded $144 billion in improper payments in fiscal 2016 , up from $137 billion in 2015. Using machine-readable data reporting can help end improper payments (using taxpayer dollars) and lead to better government spending and accountability
Interesting press release from Congressman Keith Ellison from Minnesota opposing efforts to repeal the use of XBRL for better public company financial statement disclosure using a machine-readable format for instant data analysis by the US SEC and the public /investors to protect their pension funds etc. The US SEC using XBRL for its “Robocop” operation to prevent future Enrons and Madoffs as reported in the Financial Times because the data is in a machine-readable format. The US House earlier this week voted to dismantle the XBRL transparency/ accountability platform set-up by US SEC Commissioner Christopher Cox former Republican Congressman from Orange County, California
1 Comment - UPDATE: President Obama issued a press release saying he will veto the House Bill if it kills XBRL - using a machine-readable format for public company financial statement disclosure - that prevents future Enron/ Madoff situations in the capital markets... https://www.whitehouse.gov/sites/default/files/omb/legislative/sap/114/saphr1675r 20160202.pdf
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