IFRS and XBRL: How to improve Business Reporting through Technology and Object Tracking

CHAPTER SIX

Future reporting: the object and value supply chain

CONSIDER THE FUTURE, PARTICULARLY IN RELATION to the means by which business reporting occurs is likely to occur. This is certain to take greater advantage of new technology. More importantly, with increasing interest in business reporting, a more conscientious way of displaying information will evolve. In addition, there will be greater integrity expected, and demonstrated, in the business reporting process. What follows is a view of that eventuality, one that will see greater attention being paid to objects, as well as to the related data.

Object identification and mapping

Consider the importance of object identification. Currently, the mapping of objects is a huge issue in the IT sector and is generating significant revenue for the software companies. Basically, mapping is the process matching certain aspects in two separate data models, or databases. This can facilitate data integration, including the seamless exchange of information, between companies, such as the transmission of purchase orders and invoices.

However, there is a lack of standards, as well as different metrics. Consider, for instance, metrification in most countries, but not for all. Plus, there is the issue of multiple currencies. For entities, especially those engaged in international trade or that are multinational, there is substantial data duplication. Plus, all information changes when there is a shift in the currency exchange rate. Even ...