Extensible Visual Business Intelligence for Analyzing XBRL Big Data on Blockchain Abbas Bagherian Kasgari, AnalyzerChain PhD, Allameh Tabataba'i University

1 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

2 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

3 XBRL Users

• Investors • Regulators • Companies • Governments • Data Providers • Analysts • /Auditors

4 Financial Applications

• Investment Decision Making/Analytics • Fraud Detection and Auditing • Financial Risk Management • Credit Rating • Robo-Advisors

5 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 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)

6 Application of blockchain to XBRL fillers, accountants and auditors

• Validation of postings • Verification of financial and non- financial information • Time saving

7 Recent solutions

Making Data Both Machine and Human Readable

Boosting performance

Decentralized Continuous & Reporting 8 AUDT

Decentralized Continuous Audit & Reporting

• Technology Stack Auditchain 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 , audit analytics and statistical reporting presentation layer.

9 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

10 Finding better solution?

11 BI procedure in Financial Apps

• BI Generates Knowledge/Info from data

12 The 5 biggest Business Intelligence challenges

13 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

14 Problems with traditional BI

• Many independent components that require integration • BI systems are impacted by continuous changes

15 From Democratizing Data to beyond Democratizing Financial Analysis

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

16 Intelligent Level?

• Data • Algorithm • Process • System • Network

17 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

18 1. Modeling XBRL Data

• Visual XBRL

19 20 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

21 22 US XBRL Competition 201

23 2. Automating Financial Report Analysis

24 2. Automating Financial Report Analysis

25 26 27 28 29 30 31 32 33 Multilevel Analysis

34 Title: Sale analysis(A2) Title: A1- Composition Analysis Title: analysis(A3) When Run: When Run: When Run: By proc call By proc call By proc call Parameters: Parameters: Symbol or Company Symbol or Company Parameters: Industry=ind Industry=ind Symbol or Company Last disclosure Last disclosure Industry=ind Last disclosure Function: Function: MostChangedElement MostChangedElement Function: MostChangedElement Output: Output: Report(TX) Report(TX) Output: Report(TX)

start

A2 A3 Which element have changed

sale Analysis A2 Calc MostChangedElement(Equity) Calc MostChangedElement(asset)

yes Operational Profit/Sales? Profit/Sales? has Analysis increased Capital Increase A22 Subsidies Analysis others Analysis Analysis Receivable account Analysis A11 A13 income Equipment Analysis A12 A31 A32 A1 Non-Operational Profit/ Sales? Analysis A21

no Non continuous profit is expected in Capital Increase lead to Increase in profit. xxxxx future. Buying Equipment or Long term investment xxxx xxxxx

Durable Short term investment/Non-Durable xxxxx -Long term invaestment

35 3. Collaborating Network Analysis

36 37 38 4. Democratizing Financial Analysis • XBRL Big Data • Extensible Visual Business Intelligence(XVBI) • XAI • AnalyzerChain

39 Smart Contract

• Paying to the best forecast • Finding the best analysis

40 AnalyzerChain

End User

Live Report End User Visual Financial AI Learning Algo

Visual Modeler

Smart Contract

Blockchain 41 New Model for Continuous Auditing sharing XBRL big data and BI Visual Model analytics

Continuous Auditing Procedures

XBRL Big Data XBRL Analytics Fillings/Smart Contract BI Visual Models

Blockchain

42 ` 43 Future Work

• Visual Modeler/XVBI • Network of Analyzers • Making collaboration between AI/ML and Experts • AnalyzerChain

44 linkedin.com/in/abbasbagherian

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