Seattle Method

This blog post summarizes information related to what many people refer to as "triple-entry accounting" (TEA), "triple-entry bookkeeping" (TEB), shared public ledgers, public databases, and such. First, it is important to understand the difference between recordkeeping, bookkeeping, and accounting which is: Recordkeeping : Recordkeeping relates to the mechanical process of preservation of documentary evidence of a particular event. Bookkeeping :  Bookkeeping is a specialized type of recordkeeping which relates to the mechanical process of preserving documentary evidence of particular business events in the form of financial transactions into a bookkeeping system. Accounting : Accounting builds on top of bookkeeping adding additional refinements of financial summarization and a control function added. Accounting is the language used by bookkeeping. Accounting is a communications tool. Accounting is a classification system. The "book" in bookkeeping relates ...

(Note that on this page, the term "framework" means digital financial reporting framework as contrast to the term regulatory framework and standards or financial reporting framework .) * * * A framework is scaffolding or essential supporting structure which provides leverage and scalability. A framework is a structured set of guidelines, libraries, conventions, components, best practices, and tools that provides a foundation for building applications or systems. Frameworks are useful because they save time, enforce consistency, and avoid reinventing solutions to common problems. Think of a framework like the foundation of a house. Instead of starting with raw materials every time, you begin with a solid base and predefined structures that make construction faster and more reliable. Frameworks save time because you avoid having to start from scratch when solving common problems.  Frameworks provide consistency and structure by enforcing standard best practices.  Frameworks ...

The core idea of XBRL is global open industry standard for information that is machine-interpretable that is also interpretable by humans (i.e. one version of information, usable by both humans and machines). This is achieved using the notion of the "information block". The core pattern which describes what XBRL provides is explained in the graphic which I have provided below to which I have added some numbers to help me reference specific parts of  the graphic: An " Information Block " is literally a block of information.  Not a block of data, a block of information.  There is a difference.  Data is not self aware. Information is self aware data. Information is data in context.  Data is interpretable only locally, for example within a specific software application. Information is interpretable globally. For example, "241,086,000,000" is data.  But “assets for the consolidated legal entity Microsoft as  of June 30, 2017 was $241,086,000,000 which is ex...