Designing an Intelligent Financial Reporting Framework Based on Generative Artificial Intelligence (AI-FRS): A Step Toward Self-Adaptive Accounting Standards
Keywords:
Financial Reporting, Artificial Intelligence, Accounting Standards.Abstract
In today’s complex and rapidly changing environment, the need for intelligent and self-adaptive financial reporting systems is increasingly evident. This article develops a smart financial reporting framework based on generative artificial intelligence (AI-FRS) that can autonomously and in real time update accounting standards—particularly IFRS standards—based on economic fluctuations and new data. Generative artificial intelligence, as an automated tool for simulating and analyzing economic conditions, can enhance the accuracy and transparency of financial reports and enable organizations and regulatory bodies to rely on precise and up-to-date financial information instead of periodic revisions. The findings of this study indicate that implementing this framework can significantly improve profitability, asset productivity, and compliance with IFRS standards for companies. Additionally, the analyses identify the need to strengthen capital structure and reduce dependence on high levels of debt. Overall, this project represents an important step toward innovation in financial reporting and improving the efficiency of accounting systems and can contribute to enhancing report transparency and accuracy while reducing financial and legal risks.
References
E. Brynjolfsson and A. McAfee, The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & company, 2014.
T. H. Davenport and R. Ronanki, "Artificial intelligence for the real world," Harvard business review, vol. 96, no. 1, pp. 108-116, 2018.
E. Alex Avelar and R. V. D. Jordão, "The role of artificial intelligence in the decision-making process: a study on the financial analysis and movement forecasting of the world's largest stock exchanges," Management decision, 2024, doi: 10.1108/MD-09-2023-1625.
A. H. Huang and H. You, "Artificial intelligence in financial decision-making," in Handbook of Financial Decision Making: Edward Elgar Publishing, 2023, pp. 315-335.
T. B. Adeyeri, "Automating Accounting Processes: How AI is Streamlining Financial Reporting," Journal of Artificial Intelligence Research, vol. 4, no. 1, pp. 72-90, 2024.
S. R. Hashemi Jouybari, S. M. Hosseini, and H. Abedi, "An Integrated Framework of Artificial Intelligence and Blockchain for Enhancing Transparency and Efficiency in Financial Reporting and Auditing of Islamic Banks in the Digital Economy Context," 2025.
H. S. Khorsheed, N. B. Ismael, and S. H. O. Mahmod, "The impact of artificial intelligence and machine learning on financial reporting and auditing practices," International Journal of Advanced Engineering, Management and Science, vol. 10, no. 6, pp. 30-37, 2024. [Online]. Available: https://doi.org/10.22161/ijaems.106.4.
M. Kureljusic and E. Karger, "Forecasting in financial accounting with artificial intelligence-A systematic literature review and future research agenda," Journal of Applied Accounting Research, vol. 25, no. 1, pp. 81-104, 2024, doi: 10.1108/JAAR-06-2022-0146.
M. A. Darvishi Dehnabad and A. Namazian, "The Foresight Framework of Artificial Intelligence: A Model for Smart Financial Management and Accounting," 2024.
A. Saghafi and M. R. Parsapour, "Investigating the impact of accounting data analysis using generative artificial intelligence on the quality of digital sustainability reporting considering the mediating role of green sustainability internal control systems," Financial Accounting Knowledge, vol. 12, no. 1, pp. 1–31, 2025, doi: 10.30479/jfak.2025.21533.3270.
A. Johri, "Impact of artificial intelligence on the performance and quality of accounting information systems and accuracy of financial data reporting," 2025, pp. 1-25.
M. Q. Kuaiber, Z. N. Ali, A. J. Al-Yasiri, A. J. Kareem, M. A. Al, and A. Almagtome, "Automation and the future of accounting: a study of AI integration in financial reporting," in 2024 International Conference on Knowledge Engineering and Communication Systems (ICKECS), 2024, doi: 10.1109/ICKECS61492.2024.10616967.
M. Misrofingah, E. Widasari, R. Rudiyanto, H. Hanifah, and H. Herlina, "Challenges and Opportunities for Implementing IFRS Standards Globally," Journal Markcount Finance, vol. 2, no. 2, pp. 274-284, 2024, doi: 10.70177/jmf.v2i2.1290.
H. H. Manukyan and S. Parsyan, "Artificial Intelligence Integration Assessment in Banks Through Financial Reporting: Case Study of Armenia," J. Tr., Chal. Art. Intell., vol. 1, no. 1, pp. 33-38, 2024, doi: 10.61552/jai.2024.01.004.
Z. Kuswara, M. Pasaribu, F. Fitriana, and R. A. Santoso, "Artificial Intelligence in Financial Reports: How it Affects the Process's Effectiveness and Efficiency," Jurnal ilmu keuangan dan perbankan (jika), vol. 13, no. 2, pp. 257-272, 2024. [Online]. Available: https://doi.org/10.34010/jika.v13i2.12730.
B. Odonkor, S. Kaggwa, P. U. Uwaoma, A. O. Hassan, and O. A. Farayola, "The impact of AI on accounting practices: A review: Exploring how artificial intelligence is transforming traditional accounting methods and financial reporting," World Journal of Advanced Research and Reviews, vol. 21, no. 1, pp. 172-188, 2024, doi: 10.30574/wjarr.2024.21.1.2721.
J. Temitayo Oluwaseun, N. Z. Mhlongo, and T. O. Jejeniwa, "A comprehensive review of the impact of artificial intelligence on modern accounting practices and financial reporting," Computer Science & IT Research Journal, vol. 5, no. 4, pp. 1031-1047, 2024, doi: https://doi.org/10.51594/csitrj.v5i4.1086.
V. Ahmadian, A. Fazelzadeh, S. Naghdi, and I. Yahya Salman, "The Effect of Artificial Intelligence and Blockchain Technologies on Improving the Quality of Financial Reports," in The Twenty-First International Conference on Research in Management, Economics and Development, 2024. [Online]. Available: https://civilica.com/doc/2055226/.
N. Sreseli, "Use of artificial intelligence for accounting and financial reporting purposes: A review of the key issues," American International Journal of Business Management (AIJBM), vol. 6, no. 8, pp. 72-83, 2023.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Hamid Ravan Paknoodezh; Sasan Bagherpanah (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
