Financial Reporting Router v0.1

What this file is

The entry point for the financial-reporting skill library. Before any topic skill can run, two things must be settled: which framework the entity reports under, and which standard(s) the transaction engages. This skill settles both, then loads the workflow base and the right topic skill(s).

The user never sees this skill. They describe a transaction in plain language; the router works silently and hands off.

The router computes nothing — no recognition, no measurement, no journal entries. Its only job is framework detection, standard identification, scope gating, sequencing, and handoff. If you find yourself booking an entry inside the router, stop: you have skipped the handoff.

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Step 0: Establish the reporting framework

Before routing, determine which framework governs the financial statements the output will feed. Check, in order:

Signal	Example	Framework
Explicit statement	"we report under IFRS", "US GAAP filer"	as stated
SEC registrant / US domestic filer	"10-K", "Form S-1", "SEC"	US GAAP
Local-GAAP-on-IFRS jurisdiction	EU-listed, UK, Australia, most of Asia/Africa	IFRS
US private company	"GAAP", "ASC", "FASB", US-based, no IFRS mention	US GAAP
Parent / subsidiary mismatch	"US sub of a German group", "we file local + group"	Dual reporter — both

Dual reporters

If the entity prepares one set of statements under US GAAP and another under IFRS (e.g. a US subsidiary consolidated into an IFRS group, or an IFRS company with a US-GAAP-reporting segment), load both editions of every applicable topic skill and run the computation under each, presenting the answers side by side with the topic skill's Divergence section called out. Flag this to the user explicitly — the divergence is usually the whole reason they asked.

If the framework is unclear

Ask ONE question and do not proceed until answered:

"Which framework do these statements report under — US GAAP, IFRS, or both (e.g. a local statutory set plus a group-reporting set)? It changes the citations and sometimes the answer."

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Step 1: Identify the standard(s) the transaction touches

Match the fact pattern to a topic. A single transaction may hit more than one row — that is normal and is handled in Step 3.

Signal in the fact pattern	Topic	Skill (US GAAP / IFRS)
Sale of goods/services, contract with a customer, performance obligations, variable consideration, licences, bundled deliverables, "when do we recognise revenue"	Revenue	us-gaap-asc606-revenue / ifrs15-revenue
Right to use an asset for a period, rent, hire, charter, embedded lease, lessor/lessee, sale-and-leaseback	Leases	us-gaap-asc842-leases / ifrs16-leases
Instrument that could be a liability or equity — preferred shares, redeemable instruments, warrants, convertible notes, "is this debt or equity", puttable instruments	Debt vs. equity	us-gaap-debt-vs-equity / ias32-debt-vs-equity
One entity obtains control of a business — acquisition, merger, purchase-price allocation, goodwill on acquisition, bargain purchase, contingent consideration	Business combinations	us-gaap-asc805-business-combinations / ifrs3-business-combinations

If the fact pattern matches a topic, route to it (Step 4). If it matches none, go to Step 2.

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Step 2: Scope gate — what this library does NOT cover yet

The library currently covers four topics. Many common questions sit just outside them, and several are adjacent to a topic skill (the topic skill covers initial recognition but a different standard governs the next step). Be honest: route to the closest skill for the part that is covered, and explicitly name the uncovered standard the user still needs.

If the user actually needs...	Governing standard (not yet covered)	What to say
Goodwill / asset impairment testing	ASC 350 / ASC 360 ; IAS 36	Business-combinations skill covers initial goodwill; impairment is a separate standard not yet in the library.
Income tax accounting, deferred tax	ASC 740 ; IAS 12	Not covered. Deferred tax often interacts with every topic — flag it.
Financial instruments measurement / impairment (ECL), hedging	ASC 326 / ASC 815 ; IFRS 9	Debt-vs-equity covers classification of the issuer's instrument only — not measurement, impairment, or hedge accounting.
Share-based payment	ASC 718 ; IFRS 2	Not covered.
Inventory, PP&E, intangibles (standalone)	ASC 330/360/350 ; IAS 2/16/38	Not covered except where acquired in a business combination.
Provisions, contingencies	ASC 450 ; IAS 37	Not covered.
Consolidation, equity method, JVs	ASC 810/323 ; IFRS 10/11, IAS 28	Business-combinations covers the acquisition accounting, not ongoing consolidation mechanics.
Foreign currency translation	ASC 830 ; IAS 21	Not covered.
Statement presentation, cash-flow classification as a primary question	ASC 205/230 ; IAS 1/7	Topic skills state where amounts land, but full statement presentation is not a standalone skill.

Out-of-scope message template

"I can compute the part of this that falls under [covered topic], but the core of your question is governed by [standard], which isn't in the financial-reporting library yet. I'd flag that to your reviewer rather than guess. Want me to handle the [covered part] and mark the [uncovered part] as an open item for sign-off?"

Never fabricate a treatment for an uncovered standard. Conservative-default (workflow base §5) applies to missing facts within a covered topic — it is not licence to improvise an uncovered standard.

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Step 3: Sequence when multiple topics apply

Real transactions cross topics. When two or more rows in Step 1 match, apply them in the right order — later steps depend on the outputs of earlier ones.

Combined fact pattern	Order	Why
Business combination that includes contracts/leases/instruments	Business combination first, then revenue / leases / debt-vs-equity on the acquired items	Acquired assets and liabilities are first measured at fair value at the acquisition date (ASC 805 / IFRS 3); the topic skills then apply prospectively from that fair-value baseline.
Sale-and-leaseback	Revenue first (is the transfer a sale under ASC 606 / IFRS 15?), then leases	Whether a sale occurred determines whether leaseback or financing accounting applies.
Convertible / hybrid instrument issued to fund or settle a contract	Debt vs. equity first (classify the instrument), then revenue/leases on the underlying deal	Classification of the instrument is independent of, and precedes, the customer/lease accounting.
Any combination with a divergence-sensitive dual reporter	Run the sequence under each framework separately	Ordering can differ in effect even when steps are the same.

State the sequence to the user before computing:

"This touches [topic A] and [topic B]. I'll do [A] first because [reason], then [B] using A's output as the starting point."

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Step 4: Handoff

Always load, in this order:

1. financial-reporting-workflow-base — the shared contract (output format, journal-entry format, flash points, self-checks).
2. The topic skill(s) identified in Step 1, in the edition fixed by Step 0:
   • US GAAP filer → the us-gaap-* edition
   • IFRS filer → the ifrs* / ias* edition
   • Dual reporter → both editions
3. Where Step 3 sequenced multiple topics, load them all and run in the stated order.

Then tell the user, in one line, what you loaded and what you'll produce:

"Loaded the workflow base + [topic skill(s), edition]. I'll produce the conclusion, journal entries (day 1 + subsequent), statement impact, disclosure checklist, and a reviewer brief. I'll ask for any missing facts first."

Hand control to the workflow base's structured intake (§6) — do not start asking for facts inside the router.

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Router self-checks

Before handing off, confirm:

• Reporting framework established (or the one clarifying question asked)
• Every standard the fact pattern touches identified — including the adjacent ones in Step 2
• Anything uncovered named honestly, not improvised
• Multi-topic transactions sequenced, with the order stated to the user
• Correct edition(s) selected for the framework (both, for dual reporters)
• Workflow base loaded alongside the topic skill(s) — never a topic skill alone

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PROHIBITIONS

• NEVER compute, classify, or book an entry inside the router — route and hand off.
• NEVER load a topic skill without also loading financial-reporting-workflow-base.
• NEVER guess the reporting framework — ask if unclear.
• NEVER fabricate a treatment for a standard the library does not cover — name it and flag it.
• NEVER pick a single edition for a dual reporter — load both and show the divergence.
• NEVER run multi-topic transactions out of order — business combination before the topics on acquired items; revenue (sale test) before leaseback.

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Disclaimer

This skill routes between computational guidance skills for US GAAP and IFRS. It does not constitute accounting, audit, or financial advice, is not an assurance engagement, and does not produce filed financial statements. Recognition, measurement, and disclosure frequently turn on entity-specific facts and significant judgement. All outputs of the skills this router loads must be reviewed and signed off by a qualified accountant (CPA, ACCA, Chartered Accountant, or equivalent) before they are reflected in financial statements relied upon by third parties.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.