Extensible Visual Business ... - 2020.eurofiling.info · Research Background • 2007: Intelligent...

Extensible Visual Business Intelligence for

Analyzing XBRL Big Data on Blockchain

Abbas Bagherian Kasgari, AnalyzerChain

PhD, Allameh Tabataba'i University

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Agenda

• Problem definition

• Challenge of the Traditional Solutions

• Automating Financial Analysis by Visual Modeling

• XBRL+Blockchain+XAI+XBI= XVBI Solution

• Democratizing Financial Analysis by Blockchain

• Conclusion

• Future Challenge

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Problem Definition

• How to make collaboration between different users of financial applications around the globe?

• Motivation: Improving financial analysis and find the best analysis

• Idea: Automating and Democratizing financial analysis by technology solution

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XBRL Users

• Investors

• Regulators

• Companies

• Governments

• Data Providers

• Analysts

• Accountants/Auditors

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Financial Applications

• Investment Decision Making/Analytics

• Accounting Fraud Detection and Auditing

• Financial Risk Management

• Credit Rating

• Robo-Advisors

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Academic Researches suggesting storing XBRL Big Data in Blockchain

• Real-time accounting and reporting with XBRL combined blockchain (By-ström, 2016, Trigo et al., 2014)

• Acceleration of time with the XBRL blockchain (Colgren, 2018, Monterio, 2016)

• Continuous auditing and verification with XBRL blockchain (Dai, 2017, Chan et al., 2018, Deloitte, 2018, Dai and Vasarhelyi, 2017) 11

• How to build a distributed ledger platform prototype from the ground up, specifically designed to manage financial reports, in the line of other proposals in the financial area.(article and demo by Boixo et al., 2019)

• Design and implementation of a prototype to validate and store financial statements using Ethereum blockchain (d’Atri et al., 2019)

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Application of blockchain to XBRL fillers, accountants and auditors

• Validation of postings

• Verification of financial and non-financial information

• Time saving

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Recent solutions

Decentralized Continuous Audit & Reporting8

Making Data Both Machine and

Human Readable

Boosting performance

AUDT

• Technology StackAuditchain supports a full stack which includes the base protocol layer, GAAP, IFRS and GAAS smart contract layer, application layer, audit node layer and real time (per block) public facing or permission based financial statement, audit analytics and statistical reporting presentation layer.

Decentralized Continuous Audit & Reporting

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Recent solutions Challenges

• Complexity, Non-technical users can’t easily use

• Permissioned(not free to access)

• Less accessible(everybody, everywhere)

• The current blockchain platform are ready for

business

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Finding better solution?

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BI procedure in Financial Apps

• BI Generates Knowledge/Info from data

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The 5 biggest Business Intelligence challenges

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Traditional BI solutions Challenges

• Complexity and Difficulty in the implementation of new BI requirements without tremendous support of technical team

• Slow in adapting new business requirement• Limited development (in data, process and application level)• Lack of sufficient scalability or flexibility of technical

architecture(Vallurupalli Vamsi 2018)• Are not free to use• Analyzing Big Data in a Timely Manner• Managing Big Data Growth• Security Risk of the centralized solutions• BI users cannot work paper free

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Problems with traditional BI

• Many independent components that require integration

• BI systems are impacted by continuous changes

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From Democratizing Data to beyond Democratizing Financial Analysis

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Democratizing Financial Analysis by Creating a Collaboration Model for Both Machine and Human Expert Network

Intelligent Level?

• Data

• Algorithm

• Process

• System

• Network

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The Solution

1. Easing access to data, Visual XBRL

2. Automating Financial Report Analysis

3. Collaborating Network Analysis

4. Democratizing Data and Analysis by Blockchain

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1. Modeling XBRL Data

• Visual XBRL

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Research Background

• 2007: Intelligent Pyramid Continues Auditing Agent Framework for Softening SOX Burden on Small Business Public Stock Companies”, X International Congress on Innovations in Teaching Accounting September 2007, México City, United States of México, September 2007

• 2008- 2009:Prize winner in Global XBRL Academic Competition 2008-2009, Bryant University, USA• 2009: Invited for academic panel with full travel and accommodation reimbursement grant, 9th Global XBRL

Academic Competition Winning Team and History of Academics Involvement in XBRL, 19th Conference XBRL International Conference, Paris, France- 23-25 June 2009

• 2010: Invited as Discussant, for the conference ‘THE VISIBLE HAND’, European and Global Perspectives on Financial Market Regulation and Economic Governance, Organized by European Law Journal and ESSCA, Angers, Loire Valley, France, 26-27 Feb 2010.

• 2012: ACDM12. The Next Generation of Financial Mobile Networks, The 24th XBRL International Conference• 2013: XBRL Decisión Cloud, Mar 2013 – Mar 2013• 2014: iBO: Visual Business Inteligencie, Letter of Appreciation, Securities and Exchange Organization • 8 Published Papers

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US XBRL Competition 201

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2. Automating Financial Report Analysis

2. Automating Financial Report Analysis

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Multilevel Analysis

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Calc MostChangedElement(Equity)

Which element have changed

Title: A1- Equity Composition Analysis

When Run:

By proc call

Parameters:

Symbol or Company

Industry=ind

Last disclosure

Function:

MostChangedElement

Output:

Report(TX)

start

Non continuous profit is expected in

future.Capital Increase lead to Increase in profit. xxxxx

others Analysis

A13

Capital Increase

Analysis

A12

Subsidies Analysis

A11

A2

Profit/Sales? has

increased

yes

no

sale Analysis

A2

Operational Profit/Sales?

Analysis

A22

Non-Operational Profit/

Sales? Analysis

A21

Durable

-Long term invaestment

Short term investment/Non-Durablexxxxx

Title: Sale analysis(A2)

When Run:

By proc call

Parameters:

Symbol or Company

Industry=ind

Last disclosure

Function:

MostChangedElement

Output:

Report(TX)

A3

Receivable account Analysis

A1

xxxxBuying Equipment or Long term investment

xxxxx

Calc MostChangedElement(asset)

Title: asset analysis(A3)

When Run:

By proc call

Parameters:

Symbol or Company

Industry=ind

Last disclosure

Function:

MostChangedElement

Output:

Report(TX)

Equipment Analysis

A32

Cash income

A31

3. Collaborating Network Analysis

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4. Democratizing Financial Analysis

• XBRL Big Data

• Extensible Visual Business Intelligence(XVBI)

• XAI

• AnalyzerChain

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Smart Contract

• Paying to the best forecast

• Finding the best analysis

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AnalyzerChain

Blockchain

Smart Contract

End User

Visual Modeler

Visual Financial AI Learning Algo

Live Report

End User

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New Model for Continuous Auditingsharing XBRL big data and BI Visual Model analytics

Blockchain

XBRL Big Data

Fillings/Smart Contract

XBRL Analytics

BI Visual Models

Continuous Auditing Procedures

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Future Work

• Visual Modeler/XVBI

• Network of Analyzers

• Making collaboration between AI/ML and Experts

• AnalyzerChain

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linkedin.com/in/abbasbagherian

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