The Danish Business Authority – Machine Learning

The Danish Business Authority, Erhvervsstyrelsen, is exploring cutting edge ways to apply a number of machine learning techniques to predict possible corporate failures. It is using the XBRL financial statements that it collects from the 240,000 or so private companies that operate in Denmark.

danish business authority - Erhvervsstyrelsen- logo

The goal is to be able to provide early warning information to entrepreneurs that their companies exhibit the symptoms that could lead to restructuring, closure or bankruptcy. The DBA takes historical data about failed institutions through time, applies a range of techniques to their analysis, and then lets machine learning algorithms create patterns that can be matched against every other company’s data to look for similarities. Like the “hard” and “soft” measures being used at the ECB, the DBA is using hard financial measures like solvency ratios, as well as softer data points, such as changes in the lag between the end of the reporting period and the filing date.

Read more on how AI is driving a new era of accounting

Contact us for XBRL services for Danish Business Authority

The Danish Business Authority – Machine Learning
Tagged on: