Navigating the Impact of Artificial Intelligence on International Financial Reporting Standards (IFRS)

Due to the continually evolving nature of International Financial Reporting Standards (IFRS) and the technology itself, this paper analyzes the ability for companies to leverage artificial intelligence (AI) into complying with the international financial reporting standards (IFRS). The purpose of this research is to demonstrate the gap in existing literature pertaining to the intersection of financial reporting and artificial intelligence, while also showcasing the innovative methods that companies have developed to facilitate accurate and efficient preparation of financial reporting disclosures. This paper seeks to answer the questions related to (1) the considerations for incorporating AI into a company's financial reporting disclosures and (2) Which International Financial Reporting Standards may indeed be facilitated by artificial intelligence. The results of the study indicate that many companies are still in the early stages of integrating artificial intelligence into IFRS, and ongoing development is necessary to ensure the effectiveness and efficiency of financial reporting disclosures. The tools utilized by companies are relatively new and continue to evolve, propelled by the widespread recognition of AI applications across the globe. Nevertheless, uncertainty remains regarding the reliability and appropriateness of using artificial intelligence, considering the privacy and security challenges that accounting companies face.