IFRS

Examining technology's role in enhancing IFRS compliance and accuracy

Darshan Varma, Financial Accounting Advisory Services Partner, EY India
Darshan Varma

Financial Accounting Advisory Services Partner, EY India

4 minute read 25 Sept 2025
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Discover how AI can transform IFRS compliance and reporting accuracy.

In brief

  • AI technologies can automate data collection and analysis, improving reporting efficiency.
  • Organizations adopting these technologies can reduce compliance costs and risks.
  • Businesses can simplify year-end processes with automation by reducing errors and improving financial reporting.

In today's fast-paced business environment, organizations face mounting pressure of complex and large quantities of data that have to be processed to comply with the International Financial Reporting Standards (IFRS). The emphasis on adherence to these standards is underscored by the growing recognition among financial leaders of the importance of accurate and timely financial reporting. As businesses operate in an increasingly complex global landscape, the integration of technology, particularly Artificial Intelligence (AI),has become pivotal in enhancing IFRS compliance and reporting accuracy. These technologies not only streamline processes but also provide deeper insights into financial data, enabling organizations to make informed decisions.

The importance of IFRS compliance

IFRS compliance is essential for organizations operating in multiple jurisdictions, as it enables transparency, consistency and comparability in financial statements. Non-compliance can lead to severe penalties, loss of investor confidence and reputational damage.

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The role of AI in IFRS compliance

AI technologies are revolutionizing the way organizations approach financial reporting. By automating data collection and analysis, AI can significantly reduce the time and effort required for compliance. For example, AI-driven tools can analyze vast amounts of financial data in real-time, identifying discrepancies and enhancing adherence to international financial reporting standards. Moreover, AI enables real-time monitoring and predictive analytics, allowing organizations to anticipate and address potential compliance risks. These proactive measures help minimize penalties and safeguard reputational integrity.

  • Predictive analytics: AI can provide predictive insights, helping organizations anticipate potential compliance issues before they arise. This proactive approach enables C-suite executives to make informed decisions and mitigate risks effectively.
  • Natural language processing (NLP): NLP can streamline the preparation of financial statements by automating the extraction of relevant information from unstructured data sources, such as contracts and agreements. This capability enhances accuracy and reduces the likelihood of human error.

However, businesses need to be aware of risks related to AI, such as biases in decision-making, and create strong governance frameworks to address these issues.


Several organizations have successfully implemented AI technologies to enhance their IFRS compliance.

To leverage technology for enhancing IFRS compliance and reporting accuracy, C-suite executives should consider the following strategies:

  1. Invest in AI-driven solutions: Implement AI-powered tools that automate data collection and analysis, enabling real-time compliance monitoring and reporting.
  2. Foster a culture of continuous improvement: Encourage finance teams to embrace technology and innovation, providing training and resources to enhance their skills in using AI
  3. Collaborate with technology partners: Engage with technology providers that specialize in financial compliance solutions to identify the appropriate tools and practices for your organization.
  4. Monitor regulatory changes: Stay informed about changes in international financial accounting standards and technological advancements to ensure your organization remains compliant and competitive.

Summary

The integration of AI technologies presents a significant opportunity for organizations to enhance their IFRS compliance and reporting accuracy. By adopting these technologies, C-suite executives can not only mitigate risks but also drive strategic growth and long-term value creation.

As the landscape of financial reporting continues to evolve, it is imperative for leaders to embrace innovation and leverage technology to stay ahead of the curve. Learn how your organization can leverage these strategies to drive growth in an increasingly complex.

GenAI was used to develop an iteration of this article. In accordance with EY editorial guidelines, the end product was reviewed and edited by EY professionals before publication.

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    About this article

    Darshan Varma, Financial Accounting Advisory Services Partner, EY India
    Darshan Varma
    Financial Accounting Advisory Services Partner, EY India
    Darshan is an expert in digitization of Financial Reporting; an avid follower of football and badminton; passionate about music and spirituality.
    Related topics

    EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.