On the Structure of Financial Accounting Standards to Support Digital Representation, Storage, and Retrieval

This paper provides a first look at structuring financial accounting standards to support information retrieval where document content is subject to frequent changes. The continual amendment of financial accounting standards results in the distribution of the specification of many accounting rules across multiple documents. Digital representation of financial accounting standards is suggested as an effective means toward improving the access to the standards. XML document type definitions (DTDs) are used to specify the grammar for the structure as well as the content of the financial accounting standards. The design of the DTDs reveals significant deficiencies in the current structure of financial accounting standards that preclude automation of retrieval schemes that incorporate temporal reconstruction. The deficiencies also include the lack of a hierarchical structure and a both consistent and sound arrangement. Suggestions are made for changing the structure and content of financial accounting standards to facilitate the application of digital techniques as well as enhance their understandability. A program for future research focused on the design, meaning, and use of financial accounting standards is proposed. The implications for the profession are outlined.