The impact of AI on IFRS 7 through internal corporate governance mechanism

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Published: Dec 31, 2025

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Keywords:
AI, IFRS 7, internal corporate governance mechanism,
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DOI:10.25130/tjaes.21.72.1.23
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Zardasht Abubaker Qader
Law Political Science and Management/Soran University, Soran, Iraq
zardasht.qader@soran.edu.iq
Pakhshan Omer Abdullah
Erbil Technical Administrative Institute/Polytechnic University, Erbil
poxshan.abdulla@epu.edu.iq

DOI:https://doi.org/10.25130/tjaes.21.72.1.23

Abstract

The current research examines how artificial intelligence (AI) impacts the roll-out of IFRS 7 by processing internal corporate governance mechanisms. Leveraging data from plenty companies during a range of industries, the study investigates how AI components such as Automation of Risk Assessment, Data Analytics and Predictive Modeling, Real-Time Monitoring and Reporting, and Enhanced Decision-Making and Compliance impact the effectiveness of IFRS 7. The research community consists of firms from plenty industries that adopt International Financial Reporting Standard 7 (IFRS 7) and include artificial intelligence (AI) into their internal corporate governance mechanisms. The sample involves companies from the technology, industry, and service business sectors with distinct degrees of AI adoption and governance practices. A survey was completed by 242 individuals (n = 242), including key decision-makers such as CEOs, CFOs, and audit committee members. Delegates have been picked based on their duties in firms that embrace AI-driven corporate governance solutions and IFRS 7 compliance. The feedback of those polled was compiled through a methodical questionnaire regarding the impact of AI components on internal governance mechanisms and IFRS 7 practices. The outcomes show that the Automating of Risk Assessment (Mean = 4.3, SD = 0.5) and Enhanced Decision-Making and Compliance (Mean = 4.4, SD = 0.4) are the two AI factors that are regarded to have a major impact on the usage and application of IFRS 7. Nevertheless, it seems that Real-Time Monitoring and Reporting has less of an impact (Mean = 3.0, SD = 0.6). By diving more profound into disparities in various firm types, spanning technology, industry, and service businesses, the research uncovers sector-specific differences in the integration of AI with corporate governance procedures. Due to these findings, tech companies are setting the norm for implementation, and AI is becoming more and more significant in improving corporate governance, particularly in risk management and decision-making. The study adds to our understanding of how AI-driven processes could enhance the effectiveness and transparency of financial reporting standards, particularly IFRS 7.

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How to Cite
Zardasht Abubaker Qader, & Pakhshan Omer Abdullah. (2025). The impact of AI on IFRS 7 through internal corporate governance mechanism. Tikrit Journal of Administrative and Economic Sciences, 21(72 part 1), 449–465. https://doi.org/10.25130/tjaes.21.72.1.23
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Vol. 21 No. 72 part 1 (2025): vol.21, no 72 part 1 year 2025
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Articles

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