Why we design XBRL-IR application?

 

“Think Globally, Act Locally”

"The Evolution of Cities" (1915) by Scots Planner

 

The primary idea of designing this project was driven from the idea of bolding the human role in capital market by strengthening his thinking capability as much as possible.

Speed, accuracy and validity of human expert’s decision making are dependent to availability of true and on-time information. Much quality information means much success. The quality analysis power is needed to detect financial fraud in timely manner and prevent from further financial crisis.

We started with implementing XBRL for Iranian listed companies in Tehran Stock Exchange. So, we designed a Taxonomy Viewer based on XBRL IFRS 2006 taxonomy to both help taxonomy designer to better understand XBRL structure and generate Iranian XBRL taxonomy. Next, we implemented Instance Viewer to transform online financial report from Persian XML format in Live Tehran Stock Exchange Financial Reporting Service to the XBRL-IR format and view in multi language formatted. So, this application for first time made it possible to access to financial reports of all listed Iranian companies in multi language format.

This would be interesting for investors and researchers who never had access to Iranian companies’ data.

The opportunity of web-based transforming and uploading XBRL files is possible by designing a Web Converter to both stores XBRL files in web server and downloading XBRL financial report on the web all over the world.

After providing XBRL framework of financial report data, we go for processing XBRL files for both surveillance and investment purposes.

For supporting supervision over issuer companies for regulators, we designed XBRL Surveillance and Analysis desktop with opportunity of Company Performance Analysis Using XBRL and Intelligent Visual Fraud.

XBRL Surveillance and Analysis desktop made it possible to apply ratio analysis on companies’ annual and quarterly report. This ratio analysis is designed based on Cynthia Harrington’s research, accounting professor of Indiana University that is published in a paper named “Formulas for detection Analysis ratios for detecting financial statement fraud”. As he found, although, these ratios aren't silver bullets but did prove to be consistent indicators of financial crisis.

For better investigating the company financial status, historical financial reports and trading information in Stock Exchange are illustrated in two web-based diagrams that facilities comparing the trend of companies accounting values such as earning to their symbol price along historical periods that named it “Company Performance Analysis”.

The idea of sitting down human surveillance exert relax and just design fraud detection algorithm and delegating all computing hardship to the computer, was lead to designing a new tool entitled “Intelligent Visual Fraud”. This tool is a new visual application for designing dynamic patterns for detecting financial frauds. It processes XBRL files for calculation fraud alert and then compiles fraud pattern to detect financial statement frauds.

This application checks 4 alerts (can be increase) in dynamic sequence model and apply it to the selected companies.

This application for first time made it possible to design a visual pattern for checking of dynamic pattern of suspected fraud and also automatically applying it to all companies. Now, you don’t need to know how to write code and program and it is automatically generated for checking new pattern. This ability is essential to follow up dynamic patterns of making fraud in big capital market.

Although what we tried to made is not a complete answer to growing needs of vast financial world, but it open a new doors to the further research in this way to the next researchers.