What is the purpose of a semantic tag in financial statement versions (FSV)?

The purpose of a semantic tag in financial statement versions (FSV) is to assign calculations to nodes based on assignments. Semantic tags serve as a means to define and categorize different nodes within the financial statement structure, allowing for more dynamic and flexible reporting.

When financial statement versions are created, semantic tags help clarify the relationships and calculations that need to be performed at each node of the FSV. This is particularly important because it enables automated calculations based on the data assigned to those tagged nodes, ensuring that financial reports reflect the correct figures without the need for extensive manual adjustments.

For instance, a semantic tag might indicate that certain line items are meant to sum to a subtotal or to be displayed collectively in a particular section of the financial statement. This functionality enhances the accuracy and reliability of financial reporting, simplifying the preparation of financial statements while ensuring compliance with accounting standards.

In contrast, while categorizing financial transactions or restricting reporting access might be important aspects of financial data management, they do not directly relate to the primary function of semantic tags within the context of financial statement versions. Similarly, simplifying user navigation is more about user experience rather than the mathematical or architectural functionalities that semantic tags provide within FSV.