Chapter2.txt - Chapter 2 Accounting on the Internet World...

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Chapter 2: Accounting on the Internet World Wide Web = multimedia portion of Internet; collection of local and wide- area networks, connected via Internet XML = eXtensible Markup Language - similar to HTML - users define their own tags (extensible) - tags describe the data rather than simply how to display it XBRL = eXtensible Business Reporting Language - subset of XML (uses tags to format data) - for reporting financial information on Internet - tags are standardized for business reporting purposes XBRL Instance Documents and Taxonomies: - must understand the standard tags - must understand the rules that govern the use of the tags XBRL International Consortium: creates XBRL standards How XBRL Affects Accountants: - due to corporate scandals: shareholders, analysts, and reporters are demanding more transparent reporting - allows readers to quickly access information they need - permits automatic and reliable exchange of financial information across all software formats and technologies, including the Internet - does not require change to existing accounting standards - improves access to financial information; data is digital/reusable - eliminates need to reenter financial data for different users, which reduces risks associated with data entry and lowers cost to prepare and distribute financial statements - improves investor and analyst access to information - allows accountants to quickly and easily consolidate and scrutinize internal data for use in financial reports - allows CEOs and CFOs to deliver transparent information to investors and analysts and allows vehicle for control within firm Benefits of XBRL: - transmit financial data in standard format - data items are uniquely defined - searching for tags is easier -> IDEA: database containing XBRL-coded financial information (10K companies) - data is self-checking - automatic and reliable exchange of financial information - companies are not constrained to specific formats Drawbacks of XBRL: - requires new users to learn and conform to standards of language - evolving standards require conformity to changing specifications - no requirement for auditors to provide assurance - costs of transition Intranets: based on same software as Internet, internal to the organization, outsiders are unable to access information Extranets: enable external users to access intranets, utilize passwords or private data communications channels (accessing UCI network from home computer) Domain Address = Uniform Resource Locator (URL) - .gov = government - .uk = United Kingdom - .edu = educational
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- .net = network service - .org = organization - .mil = military - .int = international treaty organization IP = Internet Protocol - numeric address of domain address - [geo region].[org #].[computer group].[specific computer or web server] TCP = Transmission Control Protocol - identify the sender (important to e-commerce applications)
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  • Spring '08
  • Zhou
  • IP address, Public-key cryptography

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