Ontological Specification of Interoperability Semantics for Financial Information Systems

Michigan State University, East Lansing MI

Investigators

Abstract

This project supports a workshop to bring together: a) computer scientists working on formal semantics methods, e.g., ontologies, knowledge representation languages b) accounting and accounting information systems faculty, c) developers of standards for financial reporting systems, such as XBRL, UN CEFACT, SDMX, ... d) government statisticians working on the generation of economic statistics e) staff from government financial and securities regulatory agencies to consider research issues and the potential utility and impact of formal semantics methods (e.g., ontologies, knowledge representation languages, description logic, etc.) for the specification of financial reporting systems and standards for financial information (reporting) systems. Intellectual Merit ---------------------- Financial reporting systems consist of financial transaction systems (e.g., general ledger), classification schemes (notably charts of accounts), and aggregation mechanisms (e.g., summing all of the transactions for particular accounts). Historic practice in the specification of financial information system standards is to specify the semantics via natural language texts. The PI and others believe that this is inadequate to assure reliable semantic interoperability among the various accounting standards and systems. This workshop is the first to bring together researchers from the formal semantics / KR / ontology communities and the accounting community. It is to explore the prospects for interaction of these two communities and write a report with a research agenda for work in this interdisciplinary area of formal semantic specification of financial information systems and the implications for interoperatibility of these financial reporting systems. Broader impacts: Financial information systems are an essential component in the management of large organizations - business, government, and nonprofits. They are an essential component of the securities and banking industries, securities and banking regulatory agencies and operation of taxation systems. Financial reporting systems are also the basis from which economic statistics, such as national income statistics and trade statistics are generated. Improvements in the semantic specification of these financial information systems will facilitate the automation of the financial reporting chain, and improve the reliability of interoperability and integration of such financial reporting systems within businesses, and between businesses and regulatory and taxation agencies. Finally, the adoption of formal semantic specifications for financial reporting systems will entail substantial changes in the training of accounting information system professionals. Project web page: http://www.msu.edu/user/mccarth4/NSFontology/