A number of applications that process XML documents interpret them as objects of application specific classes in a given domain. Generic interfaces such as SAX and DOM leave this interpretation completely to the application. Data binding provides some automation but it is not powerful enough to express complex relations between the application model and the document syntax. Since document schemas play the role of models of documents we can define document processing as model-to-model transformation in the context of Model Driven Architecture (MDA). We define a transformation language for specifying transformations from XML schemas to application models. Transformation execution is an interpretation of a document that results in a set of application objects. Categories and Subject Descriptors I.7.2 [Document and Text Processing]: Document Preparation – Markup languages; General Terms Design, Languages Keywords XML Processing, MDA, Transformations