financial-statements

Financial Statement Preparation (Financial Statements)

Overview

Supports the preparation of financial statements in accordance with K-IFRS (Korean International Financial Reporting Standards). It reflects the changes in K-IFRS No. 1118 (Presentation and Disclosure of Financial Statements), which may be early adopted in 2026, and supports a complete set of financial statements, including the statement of financial position, income statement, cash flow statement, statement of changes in equity, and notes.

Disclaimer: This skill is an AI-assisted analysis and does not replace professional advice from a certified public accountant. Financial statements must be reviewed or audited by a certified public accountant.

Trigger Keywords

financial statements, K-IFRS, income statement, balance sheet, cash flow statement, financial report, accounting closing, quarterly report, annual report, audit report, operating profit, EBITDA

Workflow

Step 1: Confirm Applicable Standards

Select applicable accounting standards:

K-IFRS: Listed companies, financial institutions, corporations above a certain size (mandatory)
Korean Generally Accepted Accounting Principles (K-GAAP): Non-listed small and medium-sized enterprises

Confirm reporting period (annual/semi-annual/quarterly)

Decide whether to early adopt K-IFRS No. 1118 (early adoption possible in 2026, mandatory implementation in 2027)

Step 2: Apply Major K-IFRS Changes for 2026-2027

K-IFRS No. 1118 'Presentation and Disclosure of Financial Statements' (newly enacted)

Replaces the existing K-IFRS No. 1001
Mandatory application: 2027년 1월 1일 fiscal years beginning on or after
Early application: 2026년 1월 1일 permitted for fiscal years beginning on or after

Classification of the income statement into 5 categories (K-IFRS No. 1118)

Category	Included Items
Operating	Revenue and expenses arising from main business activities (residual concept)
Investing	Revenue and expenses related to investment assets (equity method, dividends, etc.)
Financing	Revenue and expenses related to financing (interest expense, foreign exchange gains and losses, etc.)
Income tax	Income tax expense
Discontinued operations	Profit or loss from discontinued operations

Mandatory disclosure of MPMs (management performance measures)

Company-specific performance measures disclosed externally (e.g., adjusted operating profit, Adjusted EBITDA)
Disclosure in the notes of the basis of calculation and reconciliation with K-IFRS subtotals is required
Consolidated into a single note

Amendment to K-IFRS No. 1117 (Insurance Contracts - effective January 1, 2026)

Strengthened note disclosure of differences in estimation techniques for no-surrender and low-surrender insurance products

Step 3: Prepare the Financial Statement Set

Statement of Financial Position

자산
  유동자산: 현금및현금성자산, 매출채권, 재고자산, 기타유동자산
  비유동자산: 유형자산, 무형자산, 투자자산, 기타비유동자산
  자산 합계

부채
  유동부채: 매입채무, 단기차입금, 기타유동부채
  비유동부채: 장기차입금, 퇴직급여충당부채, 기타비유동부채
  부채 합계

자본
  납입자본, 이익잉여금, 기타포괄손익누계액
  자본 합계

Statement of Profit or Loss — Reflecting K-IFRS 1118

영업 범주:
  수익 (매출액)
  매출원가
  매출총이익
  판매비와관리비
  영업이익 (EBIT)

투자 범주:
  지분법 이익(손실)
  배당금수익
  투자자산 처분손익

재무 범주:
  이자비용
  이자수익
  외환손익

법인세비용차감전순이익
법인세비용
당기순이익

Statement of Cash Flows

Cash Flows from Operating Activities (Indirect Method Recommended)
Cash Flows from Investing Activities
Cash Flows from Financing Activities

Step 4: Note Disclosures

Required Note Items:

Summary of Significant Accounting Policies
Significant Estimates and Assumptions
Capital Management Objectives and Policies
Financial Risk Management (Market Risk, Credit Risk, Liquidity Risk)
MPM Disclosures (Upon Early Adoption of K-IFRS 1118)
Related Party Transactions
Contingent Liabilities and Commitments

Step 5: Financial Ratio Analysis

수익성: 매출총이익률, 영업이익률, 순이익률, ROE, ROA
안정성: 부채비율, 유동비율, 당좌비율, 이자보상배율
활동성: 매출채권 회전율, 재고자산 회전율, 총자산 회전율
성장성: 매출 성장률, 영업이익 성장률, 자산 성장률

Usage Examples

Example 1: "Prepare a statement of financial position under K-IFRS" → Assets, Liabilities, Equity Items → Enter Balances → Generate Statement of Financial Position

Example 2: "Analyze the statement of profit or loss into 5 categories" → Existing Statement of Profit or Loss → Reclassify into 5 Categories → Apply K-IFRS 1118

Example 3: "Review early adoption of K-IFRS 1118 in 2026" → Current Financial Statements → Analyze 5 Categories → Determine MPM Disclosure → Recommend Early Adoption

Deliverables

K-IFRS-Compliant Financial Statement Set (Statement of Financial Position, Statement of Profit or Loss, Statement of Cash Flows, Statement of Changes in Equity)
Draft of Key Notes
Financial Ratio Analysis Report
Year-over-Year Change Analysis

Precautions

Disclaimer: This is AI-assisted analysis and does not replace professional advice from a certified public accountant.

Accounting Standards Information Sources

Korea Accounting Standards Board (kasb.or.kr) — K-IFRS Full Text and Interpretations
KIFRS.com — K-IFRS Article Search
Financial Supervisory Service DART (dart.fss.or.kr) — Reference to Listed Companies' Financial Statements

2026 Key Timeline

Timing	Details
2026.1.1.	Early adoption of K-IFRS 1118 available
2026.1.1.	Mandatory implementation of amendments to K-IFRS 1117
2027.1.1.	Mandatory application of K-IFRS 1118
2027 Comparative Year	2026 Financial Statements Need Restatement (Retrospective Application)

Troubleshooting

Unable to Verify Tax Rate Changes: Corporate tax rate and deferred tax calculations must reflect the latest tax law amendments. Check the current tax rates at the National Tax Service (nts.go.kr) or consult a tax accountant.
Prior Period Data Not Provided: Comparative presentation is not possible without prior period financial statements. Please provide prior period financial statements (at least one year).
Uncertainty Regarding K-IFRS Basis: If the accounting treatment for special transactions (financial instruments, leases, revenue recognition) is unclear, refer to the authoritative interpretations of the Korea Accounting Standards Board (kasb.or.kr) or consult a certified public accountant.
Determining Whether Subject to External Audit: If total assets are 12 billion KRW or more, or total liabilities are 7 billion KRW or more, external audit is mandatory. To use AI-prepared financial statements for official submission, you must have them reviewed by an external auditor.

Related Skills

moai-finance:close-management: Month-end and payroll closing tasks
moai-finance:variance-analysis: Budget vs. actual performance analysis
moai-finance:tax-helper: Tax filing, HomeTax guidance

Post-processing chain (narrative outputs such as financial statement commentary, notes, and financial ratio comments)

After producing sentence-based outputs such as financial statement analysis comments, narrative paragraphs in draft notes, financial ratio commentary, and explanatory text for management reports, finish with the chain below.

financial-statements (해설·코멘트 부분) → moai-core:ai-slop-reviewer → moai-content:humanize-korean

moai-core:ai-slop-reviewer: Review and revise AI-sounding expressions, exaggeration, and clichés
moai-content:humanize-korean: Korean naturalness correction (limited to narrative outputs)

Table and numeric outputs such as balance sheets, income statements, cash flow statements, and financial ratios are not subject to the chain; if Excel conversion is needed, moai-office:xlsx-creatorroute to it. The chain applies only to commentary, notes, and comment sentences surrounding tables.

When not to use this skill

Month-end and payroll closing tasks: For account closing, payroll settlement, and four major insurances calculation, the moai-finance:close-management skill is more suitable.
Budget vs. actual performance analysis: For variance analysis and KPI tracking, use the moai-finance:variance-analysis skill.
Tax filing and payment: For VAT and corporate tax filing procedures, check the moai-finance:tax-helper skill first and engage a tax accountant.
Due diligence (DD) for investment decisions: Financial due diligence for M&A and investment decisions requires official due diligence by a certified public accountant or accounting firm.