Developing a Government Reporting Taxonomy
61 Pages Posted: 2 Aug 2014 Last revised: 19 Apr 2016
Date Written: November 1, 2015
The municipal bond market is a $2.8 trillion market of which approximately 70 percent is held by private investors (SEC 2010). Municipal bondholders and potential buyers do not have the same level of information as those investors choosing to invest in public companies. In part this inequity is the result of poor data accessibility. Frequently the data provided is in a format that does not allow easy comparison across governments or over time. To increase comparability and consistency in government reporting we build a government reporting taxonomy using over 700 comprehensive annual financial reports (CAFR) statements. The completed taxonomy has 194 terms that cover all financial statements filed by municipalities. This study has implications for the municipal reporting market and those entities that regulate them by providing a validated municipal government reporting taxonomy.
Keywords: Taxonomy, government reporting, government financial statements, creditors
JEL Classification: M4, M41, E62, H71, H77
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