Preparing for IFRS 18: Reviewing Accounting Data and the Scope of AI-FI Application
For accounting professionals preparing for IFRS 18, this guide outlines the financial reporting data checkpoints and the scope to confirm when consulting about AI-FI.
When does IFRS 18 take effect?
The IFRS Foundation has specified that IFRS 18 applies to annual reporting periods beginning on or after January 1, 2027. This does not mean that all domestic companies will apply the same standards. The accounting standards applied by the company, locally adopted standards, and transition requirements should be confirmed with accounting professionals and external auditors.
What should be prepared from existing accounting data?
Start by organizing the links between current chart-of-accounts items and financial statement line items, the basis for classifying profit and loss, historical data capable of producing comparative information, and the definitions and calculation bases of performance measures used by management. Accounting judgments and data transformation rules must be documented so that the results can be reviewed again.
What to Decide Before Changing the Program
Discuss the preparation scope in this order: applicable accounting standards and transition schedule → identify differences between current reports and the new presentation structure → review account and item mapping → validate comparative information → manage approval responsibilities and change history. Automated classification results also require review based on the nature of the company's transactions and its accounting policies.
Confirm the Scope of Support in an AI-FI Consultation
Consult on the scope of AI-FI application based on the accounting program currently in use, the format of data to be imported, and the required reports and review procedures. This guide does not promise automatic IFRS 18 conversion or complete coverage of all requirements. Confirm separately which functions are actually supported and which require additional development.
Materials and Inquiries
This article is a guide to preparing accounting data and does not determine the accounting treatment of any individual company. Decisions on applying and disclosing standards should be based on official standards and professional review, and confirmed rules and validation procedures should be reflected in the system.
Official IFRS Foundation Standards Guide