What Is an Income Statement Semantic Model?

An income statement data model is a collection of tables, connected using relationships. These tables and relationships represent the accounting logic surrounding how an income statement is compiled and how it can be analyzed. When combined with calculations, a semantic model is created which tools such as Excel and Power BI can utilize to visualize income statements. Regardless of whether you are using Excel pivot tables or cube formulas with an Application Programming Interface (API) connection, creating visuals in Power BI Desktop, or viewing reports on your web browser or phone, a request for information is being made to the semantic model. Thus, providing questions are identical, results will also be identical. The semantic model, therefore, creates a shared understanding, allowing users to intuitively uncover insights and retrieve consistent results, regardless of how information is consumed. It is said to be intuitive to use, as the model should accurately represent the accounting process, and thus contain familiar concepts and terminology.