Auditchain Labs AG, the developer of the world’s first decentralised accounting, financial reporting, audit and analysis virtual machine for assurance and disclosure, has launched its network client “Pacioli” on the Goerli Ethereum test network.
The DCARPE Alliance Association and Auditchain Labs AG – the developer of the Pacioli client – is extending an invitation to all Chartered Accountants and CPAs to participate in additional testing.
An official accounting certification is not required for participants to run a Pacioli node however, Auditchain stated that it helps to understand accounting logic. All interested parties may submit an application to https://dcarpe.org/join.
Pacioli is the ‘process control reasoning engine’ and serves as the native network client of the Auditchain Layer 2 Protocol. The Pacioli client features include a machine-readable financial model and accounting logic layer which leverages the XBRL global standard syntax for business and financial reporting in more than 50 jurisdictions.
The Pacioli network client computes the rules for the valid state of an economic entity or decentralised network based on its financial reporting scheme and reporting style within that scheme.
“XBRL has been the global standard for financial reporting for traditional enterprises since 2009,” said Charles Hoffman, CPA, who is a pioneer of XBRL and is Auditchain’s Product Manager for the Pacioli client.
“The decentralised architecture of Pacioli represents a major breakthrough for the articulation and validation of financial state for economic entities and represents a major milestone for the institution of accountancy toward continuous accounting, continuous financial reporting, continuous audit and dynamic analysis.”
The scope of the pilot includes:
- Testing the open network validation by Pacioli Node operators of any XBRL based financial reports already filed with any of the 50 jurisdictions that require the use of XBRL for the purposes of analysis by the requesting user.
- Audit of logic and financial state of an economic entity prior to filing by a cohort of auditors bound by the economic entity to an ERC20 audit engagement contract outputted by the Auditchain Protocol core cohort factory.
- Requirement of Pacioli Node operators to stake a minimum of 5,000 AUDT Tokens, the native settlement and governance utility on the Auditchain Protocol. Also within scope is the delegation by holders of AUDT to Pacioli Nodes to fulfil staking requirements and earn passive income.
Jason Meyers, Auditchain’s Lead Architect said: “This pilot is part of the long-awaited commercial launch of the Auditchain Protocol.
“A decentralised assurance and disclosure platform is now in dire need in light of global regulatory pressure on issuers of digital assets who have received very little guidance to date.
“Financial disclosure is the keystone to tradability in most jurisdictions and this platform will put an issuer one click away from filing with any regulator that specifies compliance with not only XBRL technical standards but also business report logic, financial accounting logic, and regulatory reporting rules.”
The Alpha version of Pacioli will feature a library of financial reporting process controls that are not only standardised for the US GAAP and IFRS financial reporting schemes but will be audited and converted into NFTs for the purposes of providing proof of assurance to auditors in the European Union who are now required under CEAOB guidance to include XBRL based machine-readable logic and data as well as human readable financial statements within the scope of an audit engagement.
About Auditchain Labs AG
Auditchain Labs AG (https://auditchain.finance ) is leading the development of the world’s first decentralised accounting, audit, financial reporting and analysis virtual machine that automates and provides proof of assurance on the world’s business and financial information. Auditchain Labs AG is a founding member of the DCARPE Alliance Association and is leading the development of the Auditchain Protocol with other members of the Alliance.
About DCARPE Alliance Association
The DCARPE Alliance Association is a global organisaton consisting of members of the accounting, audit, financial reporting, legal, blockchain, investment and regulatory community. The purpose of the Alliance is to adopt standards, provide education, drive technology innovation and promote the adoption of continuous audit and real time digital financial reporting using the Auditchain Protocol.