Seattle Method

This is a walk through of my PROOF financial reporting framework, a report prepared using that reporting framework, and a validation report which verifies that the report model and reported facts have been created correctly.  This walk through uses off the shelf software that is currently available except where I explicitly state otherwise. Overview : Reporting framework HTML page view (Created using Coyote reporting and a style sheet I created)  Reporting framework viewer (commercially available software application) Report model and report (commercially available software application) Report model and report verification (commercially available software application) Links to all files Theory of Financial Reporting Framework This is an overview of the reporting framework . There are two sections.  The first has information that relates to all reporting styles.  The second section relates to one specific reporting style of the reporting framework. A reporting sty...

A Pragmatic Knowledge Management System (PKMS) is basically a Semantic Knowledge Management System (SKMS) that has been supplemented to add restrictions and capabilities that turn the system from one that is semantic to a system that is pragmatic in nature. A Pragmatic Knowledge Management System embraces the notion of the Pragmatic Web . A Pragmatic Knowledge Management System operationalizes a Semantic Knowledge Management System and grounds it in reality and truth. A Pragmatic Knowledge Management System embraces immutable digital distributed ledgers where appropriate to enhance accountability . A Pragmatic Knowledge Management System is a platform upon with trusted ecosystems can be built. Reliable industrial processes can be created, maintained, and managed. Systems that have zero tolerance for error. A Pragmatic Knowledge Management System is a deterministic system, as are accounting information systems . A Pragmatic Knowledge Management System is a system of discrete stable ...

This blog post is from a very good email sent by Richard Gasca , the creator of Accounting & Audit by Design (A&AD) Framework, to a private email list of accountants interested in A&AD.  I thought it would be a good thing to share more broadly. Auditchain's demonstration of Pacioli Ledger Alpha and the Integrity Audit Log, reinforced by yesterday's announcement of Auditchain's partnership with PwC , represents a formidable and welcome technical milestone. Anchoring event sequences via the Haber-Stornetta cryptographic lineage (1991, 1993, 1997), utilizing Ethereum EIP-712 structured signatures, and batch-stamping Merkle roots onto public blockchains definitively solves post-hoc ledger tampering. Auditchain is entirely right on a fundamental premise: the substrate must come first, and establishing physical, append-only non-repudiation is the foundational prerequisite for any modern financial platform.  To bridge the chasm between raw cryptographic bits and a leg...

The future of information processing spans a possible spectrum from symbolic spreadsheets, to AI‑augmented spreadsheets, to fully grounded pragmatic systems powered by neuro‑semantic and neuro‑pragmatic AI. As I see it, there is a spectrum of three broad possible alternatives for processing information going forward.  Those broad alternatives appear to be: Spreadsheet Centric (Status quo) : Continue using electronic spreadsheets as the primary mechanism for organizing, calculating, and reporting information. This approach remains symbolic and manual, with limited structure and no semantic or pragmatic grounding. Spreadsheet + AI (Augmented Symbolic) : Retain electronic spreadsheets as the core environment but use AI to assist/augment with formulas, modeling, cleaning, and analysis. This enhances productivity but still operates within a symbolic, ungrounded paradigm. Pragmatic Systems + AI (Grounded, Model Driven) : Transition to pragmatic systems that encode meaning, evidence,...

Information is constructed from concepts, is expressed as propositions, organized into structures, encoded in physical technical representations, transformed across time and scope, and verified for conformance, correctness, and coherence. This is the complete structural model of information separated into layers that accommodates different patterns of information including roll ups, roll forwards, restatements, reconciliations, and comparatives as structural primitives.  Each layer is clearly differentiated, each layer building on the layer below it, and each layer capturing the structural nature of information. Layer 1: Conceptual Layer (What exists) The layer of concepts, categories, and types that define the semantic universe in which the information lives. This layer answers: What kinds of things can information be about? Examples: Asset, Liability, Equity This is the “ontology” layer; the vocabulary of meaning. Layer 2: Propositional Layer (What is claimed) The layer of claims...

The Pragmatic Web is a thing. And accounting, reporting (in particular compliance reporting), audit, and analysis need the Pragmatic Web. The notion of the Pragmatic Web was first articulated in 2002 in a paper by Munindar P. Singh, The Pragmatic Web: Preliminary Thoughts , and in 2006 by Mareike Schoop, Aldo de Moor, and Jan L.G. Dietz in their paper, The Pragmatic Web: A Manifesto . In that manifesto, they state: " The vision of the Pragmatic Web is thus to augment human collaboration effectively by appropriate technologies, such as systems for ontology negotiations, for ontology-based business interactions, and for pragmatic ontology-building efforts in communities of practice. In this view, the Pragmatic Web complements the Semantic Web by improving the quality and legitimacy of collaborative, goal-oriented discourses in communities ." So, the Pragmatic Web complements the Semantic Web; it does not replace it.  The Semantic Web is simply not enough and it's purpose i...