Manual Software Engineering: Grundlagen, Menschen, Prozesse, Techniken (German Edition)

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The single phases are the requirements, design, building, testing, publication and recognition as well as maintenance and usage. At the end of each phase there is a formal document or set of files produced. The main feedback cycles are allowed within the building phase while creating a number of taxonomy working drafts, between the testing and building phase as well as between recognition and building phase.

Also at the very end in the maintenance and usage phase the feedback provided leads the changes in the taxonomy information model and implies development of a new taxonomy version. The XBRL taxonomy development starts with the planning and analysis phase where the taxonomy development project requirements are defined and considered. The first aspect of the analysis is to state which kind of taxonomy is developed. It can be a national or industry extension to these standards as well as company specific taxonomies.

The core taxonomy compromises knowledge included in a single and stand-alone accounting or reporting standard or regulation.


The jurisdictional taxonomy extension is a taxonomy using the knowledge base included in the core taxonomy and usually extends it for a certain geographical region. The industry taxonomy extension is enhancing a taxonomy with industry specific aspects, analogue. Finally, the reporting company itself can build an own extension taxonomy including individual reporting aspects. The requirement, which taxonomy is to build and, in case of an extension taxonomy, which taxonomy is to use as a basis, should be defined in an early stage of the planning and analysis phase.

The resulting activity is the design of the taxonomy framework. A taxonomy framework can be defined as a way of combining different taxonomies for a jurisdiction or industry. A lot of European taxonomies are part of a sophisticated framework which demonstrates the importance of this activity4.

How a taxonomy framework is constructed influences the taxonomy architecture which is the way of modelling and building single taxonomies. During the development of XBRL taxonomies the knowledge from different sources such as accounting standards or other legal documents, model financial statements, real financial statements, have to be gathered. These sources need to be clearly stated in the requirements for the taxonomy before the design phase starts.

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The requirements documentation as a result of the first phase should be part of the taxonomy documentation clarifying the actions taken which is learned from software engineering. Similar to the knowledge transfer process known from ontology engineering, the accounting knowledge from domain experts has to be implemented in the knowledge base during the taxonomy design phase. Especially the crucial role of the task division between domain and technical experts must be stated very clearly at this stage.

Software Development Processes

Observing XBRL taxonomy development projects there always exists a mixture of domain and technical experts working together to establish the taxonomy. There exist similar considerations since the introduction of the Structured Systems Analysis and Design Method SSADM where the following stages drive from the business view on the information system, through the logical design to the physical design and close cooperation of the business and technical experts is required DeMarco , p. But we have learned that the approaches of each group are different. The domain experts prefer expressing their knowledge in a structured way.

The technical experts prefer to formalise the structured knowledge directly in XBRL code while modelling the taxonomy. The danger of this approach is the transfer process itself, where the structured knowledge may not be appropriate to the restrictions of the XBRL standard. Studer et al. Both issues can lead to a disruption in the modelling process.

Due to the reason that there is no formal XBRL modelling notation for the taxonomies development, yet, the common approach is using spreadsheets for the representation of the knowledge base. A so called information model is created with possible structures that need to be encoded in an XBRL taxonomy, later. The information model can vary from just representation tasks of the reports in form of tables FINREP taxonomy to a very detailed description of each attribute that needs to be included in the taxonomy German GAAP.

The lack of a common modelling approach in XBRL and a formal notation is a major drawback of the standard. The result of the design phase is information model.

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The taxonomy building phase begins after the development of the information model by domain experts. There are XBRL taxonomy editing tools already available, but the taxonomy building is still a sophisticated task. This transfer process can result in changes or even losses in semantic of the constructed taxonomy.

XBRL International has released a document called FRTA with established rules and conventions that assist in a comprehensive manner the usage and performance among different financial reporting taxonomies. Moreover Hoffman describes 25 so called taxonomy patterns which define the possible structures appearing in financial reports and their representation in taxonomy code. Taxonomy developers are free to encode the information model according to individual rules due to the reason that patterns are not a formal notation.

There is a number of so called taxonomy working drafts to support the visibility of the taxonomy building phase. After each working draft the feedback is being included in the information model.

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  • Another option is that the next working draft fulfils the requirements. The usage of available taxonomy editors supports the testing of the taxonomy working drafts at the end of each development cycle. Extensive tests are conducted after the last iteration of the building phase in the taxonomy testing phase.

    There are various test levels. These prerequisites are ensured by using a proper XBRL taxonomy editing tools. Another important step is the domain experts review of the final working draft Hoffman , p. The domain experts ensure that the transformation of the information model into XBRL taxonomy code is conducted in a proper way as well as during the building phase. The reviewed taxonomy is usually released as an exposure draft to gain user feedback. The feedback is discussed during the building phase with the following revised working draft, tests, and exposure draft IASCF Crucial for the test are samples and real instance documents.

    Instance documents are financial reports contain reported facts and are created according to the taxonomy. Sample instance documents are usually filled with artificial numbers when real instance documents represent real financial statements.

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    • Both should be constructed in order to validate the proper taxonomy design. Potential taxonomy users take often part during the testing phase.

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      Their special task is often the preparing of real instance documents based on the taxonomy exposure draft. The testing phase is followed by taxonomy publication and recognition phase. There is a recognition process at the XBRL International level assigning to a taxonomy either the status acknowledged or approved. XBRL International can approve, ask for changes or reject the taxonomy during the recognition process Calvert and Macdonald , p. The result of the publication and recognition phase is the final taxonomy version. The taxonomy usage and maintenance starts directly after the publication.


      The taxonomy users are reporting entities and also software vendors building in the XBRL reporting capabilities into their software products. The experience derived from developed projects indicates that taxonomy maintenance requires taxonomy developers to monitor the taxonomy usage and track the issues and bugs the users experience with the taxonomy. The feedback from the taxonomy usage and maintenance phase has to be incorporated in the next version of the information model and has to be considered in the next taxonomy release.

      The problematic of taxonomy versioning is also a part of the maintenance phase.

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      Approaches known from software versioning as well as ontology versioning systems offer an initial point for taxonomy versioning XBRLLab But it has to be stated that there is no solution, yet, from either XBRL International or software vendors. The first criteria type follows the IEEE standard According to the IEEE-norm , criteria can be classified into three categories: taxonomy management activities, development oriented activities, and accompanying activities IEEE The taxonomy management activities constitute the tasks and functions of the technical project management within the development process.

      This can be subdivided into planning, control, and quality assurance. The second category of IEEE criteria, development oriented activities, assume that these activities are divided into three groups. They are executed during the actual development, predevelopment, and post-development. The accompanying activities support the development process and are executed parallel to the specific phases of the development process. This development process can be subdivided into knowledge acquisition, evaluation, integration, configuration management, and documentation.

      It has to be considered that the executed activities are just identified. This is not precisely mentioned, when the activities have to be executed. The presented taxonomy development process model is described in details above. There are clearly taxonomy pre-development, development and post development activities indicated in the model. The model defined the accompanying activities for the building phase which are cyclic taxonomy working draft creations.

      Category parts are the criteria life cycle, application dependence, and the usage of core taxonomies.