onto-mcp 0.3.0

package/.onto/domains/accounting/domain_scope.md

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+---
+version: 2
+last_updated: "2026-04-16"
+source: manual
+status: established
+---
+
+# Accounting Domain — Domain Scope Definition
+
+This is the reference document used by coverage to identify "what should exist but is missing" in accounting systems.
+This domain applies when **reviewing** accounting systems and financial reporting frameworks — transaction recording, journal entries, ledger aggregation, closing procedures, financial statement preparation, and note disclosure.
+
+> **Boundary with finance domain**: The finance domain covers the output of accounting — financial statement ontologies, taxonomies, inter-statement relationships, analytical metrics. This domain covers the input and processing — journal entries, ledger posting, closing procedures, recognition/measurement rules, and disclosure mechanics. A completed income statement belongs to finance; the sequence of journal entries that produced it belongs to accounting.
+
+> **Boundary with accounting-kr (Korean-specific) domain**: The accounting-kr domain covers Korea-specific accounting practices, K-GAAP vs K-IFRS transition issues, and Korean tax code interactions. This domain covers accounting fundamentals applicable across jurisdictions. Korean-specific regulatory filings (DART reporting) belong to accounting-kr; K-IFRS core standard principles belong here.
+
+## Classification Axes
+
+| Axis | Values | Description |
+|---|---|---|
+| Recording basis | Cash basis / Accrual basis | Timing of revenue/expense recognition |
+| Standard | K-IFRS / K-GAAP / US-GAAP | Applicable accounting standard |
+| Reporting unit | Consolidated / Separate | Financial statement preparation unit |
+| Reporting frequency | Annual / Semi-annual / Quarterly / Monthly | Closing frequency |
+| Entity type | General / Financial / Public sector / Non-profit | Chart of accounts structure varies |
+| Measurement basis | Historical cost / Fair value / Amortised cost / NRV / Value in use | Valuation method per asset/liability |
+
+## Key Sub-Areas
+
+Classification axis: **Accounting concern** — Classified by the concern that an accounting system must address.
+
+Applicability markers:
+- **(required)**: Must be addressed in any accounting system review. Absence indicates a fundamental gap
+- **(when applicable)**: Address when the entity's activity includes the relevant pattern. Condition type: feature existence (binary)
+- **(scale-dependent)**: Becomes required beyond a scale threshold documented per item. Condition type: scale threshold (quantitative boundary crossed)
+
+### Double-Entry Bookkeeping
+- **Double-entry principles** (required): Debit (차변) / Credit (대변) balance, Journal Entry (분개), Trial Balance (시산표), Posting (전기), General Ledger (총계정원장)
+- **Accrual basis accounting** (required): Revenue/expense recognition timing, differences from cash basis, period attribution via adjusting entries
+- **Chart of accounts** (required): 5-element classification (Assets/Liabilities/Equity/Revenue/Expenses), account code hierarchy, subsidiary ledgers
+
+### Financial Statements
+- **Statement of Financial Position (재무상태표)** (required): Assets = Liabilities + Equity identity, current/non-current classification, measurement basis per item
+- **Statement of Comprehensive Income (포괄손익계산서)** (required): Revenue/expense recognition, Operating Income structure, Other Comprehensive Income (기타포괄손익, OCI)
+- **Statement of Cash Flows (현금흐름표)** (required): Operating/investing/financing classification, direct/indirect method for operating CF
+- **Statement of Changes in Equity (자본변동표)** (required): Changes in equity components, Retained Earnings (이익잉여금) appropriation, OCI accumulation
+
+### K-IFRS Core Standards
+- **IFRS 15 Revenue Recognition (수익인식)** (required): 5-step model (contract → performance obligations → transaction price → allocation → recognition), over-time vs point-in-time
+- **IFRS 16 Leases (리스)** (required): Right-of-Use Asset (사용권자산) / Lease Liability (리스부채) recognition, short-term and low-value exemptions
+- **IFRS 9 Financial Instruments (금융상품)** (required): Classification (AC/FVOCI/FVTPL), Expected Credit Loss (기대신용손실), hedge accounting basics
+- **IAS 36 Impairment (자산손상)** (when applicable): Cash-generating units, recoverable amount, impairment indicators, impairment reversal
+- **IAS 2 Inventories (재고자산)** (when applicable): Cost formula (FIFO / weighted average), net realizable value, write-down
+- **IAS 16 PP&E (유형자산)** (when applicable): Depreciation method, useful life, residual value, revaluation model
+- **IAS 38 Intangible Assets (무형자산)** (when applicable): Recognition criteria, amortisation, internally generated intangibles
+- **IFRS 3 Business Combinations (사업결합)** (when applicable): Acquisition method, goodwill (영업권) recognition, purchase price allocation (PPA)
+
+### Period and Closing
+- **Accounting period** (required): Fiscal year definition, interim periods, period attribution enforcement
+- **Closing procedures** (required): Adjusting entries (수정분개), closing entries (마감분개), reversing entries, opening balance rollover
+- **Disclosure and notes** (required): Significant accounting policy disclosure, estimation uncertainty, related party transactions, subsequent events
+- **XBRL reporting** (scale-dependent): Electronic disclosure taxonomy mapping, tagging rules, validation. Scale threshold: listed entity
+
+### Supporting Areas
+- **Tax accounting** (when applicable): K-IFRS ↔ Corporate Tax Law reconciliation, Deferred Tax (이연법인세), tax adjustments (세무조정)
+- **Cost accounting** (when applicable): Manufacturing cost allocation, job order vs process costing, standard costing, activity-based costing
+- **Management accounting** (when applicable): Budgeting, variance analysis, break-even analysis, CVP analysis
+- **Audit and internal controls** (when applicable): ISA-based audit procedures, internal control design (COSO framework), audit evidence, management assertions
+- **Consolidated accounting** (when applicable): Control determination (IFRS 10), consolidation scope, intercompany elimination, Non-controlling Interest (비지배지분)
+- **Foreign currency translation** (when applicable): Functional currency determination, transaction date rate, period-end rate, translation differences
+
+## Normative System Classification
+
+Standards governing accounting operate at four distinct tiers.
+
+| Tier | Name | Enforcement Mechanism | Change Velocity | Examples |
+|------|------|----------------------|-----------------|---------|
+| Tier-1a | Accounting Standards | **Legal obligation** + auditor enforcement | Slow (years) | K-IFRS standards, IFRS/IAS, K-GAAP for non-listed, US-GAAP ASC |
+| Tier-1b | Regulatory and Tax Requirements | **Regulatory/tax authority** enforcement | Medium (annual) | Financial Services Commission (FSC) disclosure rules, Corporate Tax Law, Income Tax Law, listing requirements |
+| Tier-2 | Audit Standards and Data Taxonomies | Audit firm and regulatory review | Medium (annual) | ISA (International Standards on Auditing), XBRL taxonomies, DART filing rules |
+| Tier-3 | Industry Practice and Heuristics | Professional convention, peer comparison | Fast (per analysis) | Common cost allocation methods, typical materiality thresholds (5% of pre-tax income), industry-specific metrics |
+
+**Ordering principle**: Tier-1a > Tier-1b > Tier-2 > Tier-3. Accounting standards override everything; tax requirements override data standards and practice.
+
+Tier classification decision tree:
+1. **Tier-1a**: Is this rule from K-IFRS, IFRS/IAS, K-GAAP, or US-GAAP? Would non-conformance produce a qualified audit opinion?
+2. **Tier-1b**: If not Tier-1a, is this rule from tax law, regulatory filing requirements, or listing rules? Would non-conformance produce a regulatory penalty?
+3. **Tier-2**: If not Tier-1a/1b, is this rule from audit standards (ISA) or data taxonomies (XBRL)?
+4. **Tier-3**: If none of the above, is this an industry practice or professional convention?
+
+## Cross-Cutting Concerns
+
+### Audit Trail
+
+Spans all sub-areas. Every recorded transaction must be traceable from origin (source document) through journal entry, ledger, trial balance, to financial statement presentation.
+
+- Transaction-to-statement traceability: logic_rules.md §Double-Entry Balance Logic
+- Journal-to-ledger posting: dependency_rules.md §Direction Rules
+- Supporting documentation retention: structure_spec.md §Verification Structure
+
+### Period Attribution Integrity
+
+Spans Double-Entry Bookkeeping, Financial Statements, and Period/Closing. Transactions must be attributed to the correct accounting period through accrual basis accounting.
+
+- Accrual adjustments: logic_rules.md §Period Attribution Logic (unearned/accrued revenue, prepaid/accrued expense)
+- Period boundaries: logic_rules.md §Closing Procedures
+- Comparative period consistency: dependency_rules.md §Period Dependencies
+
+### Measurement Consistency
+
+Spans Financial Statements and Accounting Standards. Measurement basis (historical cost, fair value, amortised cost) must be consistently applied per accounting policy.
+
+- Policy disclosure: concepts.md §Accounting Policy Choices
+- Policy changes: extension_cases.md §K-IFRS Standard Amendment
+- Measurement hierarchy: logic_rules.md §Measurement Logic
+
+## Required Concept Categories
+
+| Category | Description | Risk if Missing | Example of Failure |
+|---|---|---|---|
+| Debit/Credit balance (차변/대변) | Every transaction must have equal debits and credits | Trial Balance imbalance, financial statement integrity breakdown | Cash sale of 1M KRW recorded only as revenue increase — assets don't increase, trial balance broken |
+| Accrual basis (발생기준) | Economic events recognized at occurrence, not cash exchange | Revenue/expense period attribution errors | December 31 service delivered, cash received January — if recorded in January only, December revenue understated |
+| Going concern (계속기업) | Assumption that entity continues operations | Asset valuation basis breakdown; liquidation value application required instead | Bankruptcy-imminent entity still values assets at historical cost instead of NRV |
+| Materiality (중요성) | Threshold for influencing user decisions | Excessive disclosure (noise) or omission of significant information | Disclosing every 10,000 KRW rounding difference as a note, obscuring material items |
+| Substance over form (실질우선) | Economic substance drives accounting, not legal form | Formal classification errors | Sale-and-leaseback structured as sale for legal form but economically financing — must be classified as financing |
+| Audit trail (추적가능성) | Traceability from transaction to statement | Audit impossible, error sources unidentifiable | Financial statements show revenue 10B but supporting journal entries only total 8B |
+| Chart of accounts integrity | All accounts used are defined, classified correctly | Unauthorized accounts emerge, reporting drift | Journal entry uses "miscellaneous" account not in chart; aggregation produces inconsistent totals |
+| Closing discipline | Period-end procedures executed completely | Period attribution errors carried forward | Adjusting entries not posted — accrued expenses missed, next period's opening balance wrong |
+| Estimation reasonableness | Estimates (depreciation, ECL, Fair value) based on documented methodology | Subjective swings, manipulation risk | Depreciation useful life changed from 10 to 20 years without documented rationale — smoothed earnings artificially |
+
+## Reference Standards/Frameworks
+
+This file is the **single source of truth for external standard version information** within the accounting domain.
+
+| Standard | Version | Application Area | Core Content |
+|----------|---------|-----------------|--------------|
+| K-IFRS | 2024 (aligned with IFRS) | Listed entity accounting | Korean adoption of IFRS; 17 IFRS + 29 IAS standards |
+| K-GAAP | 2024 | Non-listed SME accounting | Korean accounting standards for entities not applying K-IFRS |
+| Corporate Tax Law | 2024 (revised annually) | Tax accounting | Tax adjustments, Deferred Tax calculation |
+| Income Tax Law | 2024 | Personal tax | Individual taxpayer filing and deduction rules |
+| XBRL | 2.1 (2003, maintained) | Electronic disclosure | Structured reporting format for financial data |
+| IFRS Taxonomy | 2024 | XBRL mapping | Element definitions for IFRS disclosure requirements |
+| ISA | 2023 (IAASB) | Audit procedures | 40+ standards for audit planning, execution, reporting |
+| COSO Internal Control Framework | 2013 | Internal controls | 5 components (control environment, risk assessment, control activities, information/communication, monitoring) |
+| DART Taxonomy | Current | Korean electronic disclosure | Financial Supervisory Service taxonomy for DART filings |
+
+## Bias Detection Criteria
+
+### Coverage Distribution
+
+- If 3 or more of the 5 concern areas are not represented at all → **insufficient coverage**
+- If concepts from a specific standard (e.g., IFRS 15) account for more than 70% of the total → **standard bias**
+
+### Transaction Path Completeness
+
+- If only normal transactions are addressed with no adjusting entries/error corrections → **path bias**
+- If only recognition/measurement is present with no disclosure/notes → **reporting incomplete**
+- If closing procedures (adjusting, closing, reversing entries) are not addressed → **closing gap**
+
+### Reporting Unit Completeness
+
+- If only individual financial statements are present with no consolidated perspective (when applicable) → **consolidated perspective absence**
+- If only current period is addressed with no comparative period → **comparability absence**
+
+### Standard Separation
+
+- If K-IFRS income is used directly as taxable income without tax adjustments → **tax-accounting confusion**
+- If fair value measurement and cost measurement coexist for the same asset without policy documentation → **measurement policy ambiguity**
+- If substance over form principle is not applied to complex transactions (e.g., leaseback, repo) → **form-driven classification**
+
+## Inter-Document Contract
+
+### Rule Ownership
+
+| Cross-cutting Topic | Owner File | Other Files |
+|---|---|---|
+| Double-entry balance logic | logic_rules.md §Double-Entry Balance Logic | structure_spec.md (references) |
+| Recognition rules (IFRS 15/9/16) | logic_rules.md §Recognition Logic | dependency_rules.md (references) |
+| Concept definitions and synonyms | concepts.md | All other files reference, do not redefine |
+| Source of Truth priority | dependency_rules.md §Source of Truth Management | domain_scope.md (tier mapping) |
+| Structural requirements | structure_spec.md §Financial Statement Structure Required Elements | Other files reference |
+| Conciseness criteria | conciseness_rules.md | Other files reference |
+| Competency questions | competency_qs.md | Other files provide inference path targets |
+| Constraint conflict resolution | logic_rules.md §Constraint Conflict Checking | dependency_rules.md (cascading failures) |
+
+### Sub-area to CQ Section Mapping
+
+| Sub-area | CQ Sections | Coverage |
+|---|---|---|
+| Double-Entry Bookkeeping | CQ-DE | Full |
+| Financial Statements | CQ-FS | Full |
+| IFRS 15 Revenue Recognition | CQ-RR | Full |
+| IFRS 9 Financial Instruments | CQ-FI | Full |
+| IFRS 16 Leases | CQ-LS | Full |
+| Period and Closing | CQ-PC | Full |
+| Tax Accounting | CQ-TX | Full |
+| Audit and Internal Controls | CQ-AU | Full |
+| Consolidated Accounting | CQ-CS | Full |
+| Disclosure and Notes | CQ-DS | Full |
+
+Cross-cutting CQ sections:
+- CQ-AT (Audit Trail) — spans all transaction flow sub-areas
+- CQ-PA (Period Attribution) — spans Double-Entry, Financial Statements, Period/Closing
+- CQ-MC (Measurement Consistency) — spans Financial Statements and Accounting Standards
+
+## Related Documents
+- concepts.md — Definitions of terms within this scope
+- structure_spec.md — Specific rules for financial statement structure and chart of accounts
+- competency_qs.md — Questions this scope must be able to answer
+- logic_rules.md — Recognition, measurement, and balance logic
+- dependency_rules.md — Inter-statement linkage, inter-standard dependencies
+- extension_cases.md — Scenarios for accounting evolution (new revenue types, standard amendments, consolidation changes)
+- conciseness_rules.md — Allowed/prohibited redundancy patterns

package/.onto/domains/accounting/extension_cases.md

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+---
+version: 2
+last_updated: "2026-04-16"
+source: manual
+status: established
+---
+
+# Accounting Domain — Extension Scenarios
+
+Classification axis: **Change trigger** — cases classified by the type of change that triggers accounting system evolution. Cases cover growth triggers (Cases 1–8) and shrinkage/simplification triggers (Cases 9–10).
+
+---
+
+## Case 1: Adding a New Revenue Source
+
+### Situation
+
+A previously non-existent type of revenue occurs (subscription model, licensing, bundled sales, usage-based billing).
+
+### Case Study: SaaS Subscription Transition
+
+A software company shifted from perpetual licenses (recognized at delivery) to SaaS subscriptions (over-time recognition). Each subscription has multiple performance obligations: software access (over-time), implementation services (point-in-time on delivery), customer support (over-time over subscription period). Revenue recognition required IFRS 15 allocation at standalone selling price.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Performance obligation identification | New types must be identified and documented |
+| Over-time vs point-in-time determination | New arrangements may require different pattern |
+| Transaction price allocation | Multi-element contracts require allocation |
+| Chart of accounts | New revenue account may be needed |
+| System support | ERP must handle over-time revenue and contract liabilities |
+
+### Verification Checklist
+
+- [ ] Can 5-step IFRS 15 model be applied to new revenue source? → logic_rules.md §Recognition Logic
+- [ ] Are Performance Obligations properly identified? → concepts.md §Revenue Recognition Terms
+- [ ] Can chart of accounts accommodate new revenue type? → structure_spec.md §Chart of Accounts
+- [ ] Does ERP system handle over-time recognition? → domain_scope.md §Key Sub-Areas
+- [ ] Are contract assets/liabilities distinguishable from trade receivables/payables? → concepts.md §Revenue Recognition Terms
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| concepts.md | Verify | §Revenue Recognition Terms |
+| logic_rules.md | Verify | §Recognition Logic (Revenue) |
+| structure_spec.md | Modify | §Chart of Accounts |
+| dependency_rules.md | Verify | §Inter-Account Dependencies |
+
+---
+
+## Case 2: K-IFRS Standard Amendment
+
+### Situation
+
+A major amendment to an applicable standard changing recognition, measurement, or disclosure requirements.
+
+### Case Study: IFRS 16 Leases Adoption (2019)
+
+Operating leases moved from off-balance-sheet to on-balance-sheet. Companies must choose transition method:
+- Full retrospective (prior periods restated)
+- Modified retrospective (cumulative effect at transition date, no prior period restatement)
+
+Impact: total assets and liabilities increase materially (10-30% for asset-heavy companies). Leverage ratios fundamentally altered.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Accounting policy change | Retrospective or modified retrospective |
+| Prior period restatement | Comparative statements may be restated |
+| Ratio recalculation | Leverage, ROA, interest coverage all affected |
+| Disclosure transition year | Additional disclosures in first year of application |
+| Tax effect | Tax adjustment items change (tax often uses prior treatment) |
+
+### Verification Checklist
+
+- [ ] Is transition method chosen and documented? → dependency_rules.md §Period Dependencies → IAS 8
+- [ ] Are prior period comparatives restated (if full retrospective)? → logic_rules.md §Period Attribution Logic
+- [ ] Is transition impact disclosed in notes? → domain_scope.md §Key Sub-Areas → Disclosure
+- [ ] Do tax adjustments reflect new treatment? → logic_rules.md §Tax-Accounting Difference Logic
+- [ ] Are affected ratios recalculated and disclosed? → dependency_rules.md §Inter-Financial-Statement Linkage
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| concepts.md | Modify | relevant IFRS section, §Accounting Policy Choices |
+| logic_rules.md | Modify | relevant rules, §Constraint Conflict Checking |
+| dependency_rules.md | Verify | §Period Dependencies, §External Dependency Management |
+
+---
+
+## Case 3: Subsidiary Acquisition/Disposal
+
+### Situation
+
+Consolidation scope changes: new acquisition, share disposal, loss of control, gaining control.
+
+### Case Study: Control Assessment Change
+
+A company owned 45% of an associate (equity method). Board composition change gave the investor majority board seats, passing the power test. All three IFRS 10 tests (power + variable returns + link) now met → reclassification from associate to subsidiary → full consolidation required from date of control.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Control determination | 3-element test applied (IFRS 10) |
+| Consolidation scope change | Subsidiary added or removed |
+| Intercompany elimination | New intercompany transactions to eliminate |
+| NCI calculation | NCI share of subsidiary's net assets and income |
+| Goodwill | PPA required for acquisition; goodwill = acquisition cost - fair value of net assets |
+| Retrospective vs prospective | Generally prospective from acquisition/disposal date |
+
+### Verification Checklist
+
+- [ ] Are control determination criteria applied (3 elements)? → logic_rules.md §Consolidation Logic
+- [ ] Is consolidation scope updated? → structure_spec.md §Required Relationships
+- [ ] Are intercompany transactions identified and eliminated? → logic_rules.md §Consolidation Logic
+- [ ] Is NCI calculated correctly? → concepts.md §Consolidation Terms
+- [ ] Is goodwill recognition documented per IFRS 3? → logic_rules.md §Consolidation Logic
+- [ ] For disposal: is loss of control recognition appropriate? → concepts.md §Consolidation Terms
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| logic_rules.md | Verify | §Consolidation Logic |
+| dependency_rules.md | Verify | §Referential Integrity |
+| structure_spec.md | Verify | §Required Relationships |
+
+---
+
+## Case 4: Foreign Currency Transaction Increase
+
+### Situation
+
+Increase in transactions with overseas counterparties, establishment of overseas subsidiaries with different functional currency.
+
+### Case Study: Overseas Subsidiary Establishment
+
+Korean parent establishes US subsidiary with USD as functional currency. Consolidation requires:
+- Subsidiary's assets/liabilities translated at closing rate
+- Subsidiary's income/expenses translated at average rate (or transaction-date rate)
+- Translation differences recognized in OCI (Foreign Currency Translation Reserve)
+- On disposal, accumulated translation differences reclassified to P&L
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Functional currency determination | Primary economic environment of operations |
+| Initial recognition rate | Transaction date rate |
+| Period-end translation | Monetary items at closing rate; non-monetary at historical |
+| Translation differences | P&L for monetary; OCI for consolidated foreign operations |
+| Exchange rate disclosure | Basis for applicable rates disclosed |
+
+### Verification Checklist
+
+- [ ] Are initial recognition and period-end rates applied separately? → logic_rules.md §Measurement Logic, §Period Attribution Logic
+- [ ] Are translation differences classified correctly (P&L vs OCI)? → dependency_rules.md §Inter-Financial-Statement Linkage (OCI)
+- [ ] Are exchange rate effects separately presented on CF? → structure_spec.md §Financial Statement Structure → CF
+- [ ] Is functional currency determination documented? → concepts.md §Accounting Policy Choices
+- [ ] For consolidated foreign operation, is translation reserve tracked? → logic_rules.md §Consolidation Logic
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| structure_spec.md | Verify | §Financial Statement Structure |
+| logic_rules.md | Verify | §Measurement Logic, §Consolidation Logic |
+| dependency_rules.md | Modify | §External Dependency Management |
+
+---
+
+## Case 5: Tax Law Amendment
+
+### Situation
+
+Corporate tax rate change, tax adjustment item change, new tax credit introduction, transfer pricing rule change.
+
+### Case Study: Corporate Tax Rate Reduction
+
+Korea reduces Corporate Tax rate from 25% to 22%. All Deferred Tax assets and liabilities must be remeasured at new rate. Impact:
+- DTL reduction → Deferred Tax benefit in current period P&L
+- DTA reduction → Deferred Tax expense in current period P&L
+- Net impact depends on entity's DT balance composition
+- Disclosure: change impact on effective tax rate
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Deferred Tax recalculation | All DT at new rate |
+| Current period P&L | Net impact of remeasurement in current period |
+| Effective tax rate | Shifts toward new statutory rate |
+| Prior period | Unchanged (rate change applies prospectively) |
+| Disclosure | IAS 12 requires disclosure of tax rate change impact |
+
+### Verification Checklist
+
+- [ ] Are DT assets/liabilities recalculated at new rate? → logic_rules.md §Tax-Accounting Difference Logic
+- [ ] Is remeasurement impact in current period P&L? → concepts.md §Tax Accounting Terms
+- [ ] Are temporary vs permanent differences classifications reviewed? → concepts.md §Tax Accounting Terms
+- [ ] Is tax law change disclosed? → domain_scope.md §Key Sub-Areas → Disclosure
+- [ ] Is effective tax rate reconciliation updated? → competency_qs.md CQ-TX-05
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| logic_rules.md | Modify | §Tax-Accounting Difference Logic |
+| dependency_rules.md | Modify | §External Dependency Management |
+| concepts.md | Verify | §Tax Accounting Terms |
+
+---
+
+## Case 6: Audit Standards Change
+
+### Situation
+
+ISA amendments, strengthened internal control requirements (SOX-like), new audit report format.
+
+### Case Study: Key Audit Matters Introduction (ISA 701, 2016)
+
+Listed company audit reports must include Key Audit Matters (KAM) section. Auditor identifies matters of most significance in current period audit:
+- Areas of higher assessed risk
+- Areas involving significant management judgment
+- Significant transactions in the period
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Audit procedures | KAM identification formalized |
+| Audit report | New KAM section |
+| Entity response | Management prepares for enhanced audit scrutiny |
+| Internal controls | Enhanced documentation may be needed |
+| Disclosure | Entity notes align with KAM areas |
+
+### Verification Checklist
+
+- [ ] Does audit trail meet strengthened requirements? → domain_scope.md §Cross-Cutting Concerns → Audit Trail
+- [ ] Is internal control documentation updated? → concepts.md §Audit and Internal Control Terms
+- [ ] Are KAM identification procedures established? → concepts.md §Audit and Internal Control Terms → KAM
+- [ ] Are management estimates more robustly documented? → logic_rules.md §Measurement Logic
+- [ ] Are disclosures aligned with KAM topics? → domain_scope.md §Key Sub-Areas → Disclosure
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| structure_spec.md | Modify | §Verification Structure |
+| concepts.md | Modify | §Audit and Internal Control Terms |
+| competency_qs.md | Verify | CQ-AU section |
+
+---
+
+## Case 7: Digital Reporting Transition
+
+### Situation
+
+XBRL tagging expansion, real-time reporting requirements, electronic disclosure format changes.
+
+### Case Study: DART (Korea) Expanded XBRL Tagging
+
+Financial Supervisory Service expands XBRL tagging scope from main statements to notes (block tagging). Companies must:
+- Map chart of accounts to DART taxonomy elements
+- Tag main statements and note items
+- Validate referential integrity between tagged items
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Taxonomy mapping | Chart of accounts mapped to DART elements |
+| Note tagging | Additional tagging burden |
+| Referential integrity | Tags in notes must match main statement tags |
+| Validation | Filing system validates before acceptance |
+| Reporting frequency | More frequent tagging if reporting cycles shortened |
+
+### Verification Checklist
+
+- [ ] Does chart of accounts map to XBRL taxonomy? → structure_spec.md §Chart of Accounts
+- [ ] Is referential integrity between financial statement items and XBRL tags maintained? → dependency_rules.md §Referential Integrity
+- [ ] When reporting frequency shortens, is period attribution verification scaled? → logic_rules.md §Period Attribution Logic
+- [ ] Are extension elements documented when standard taxonomy insufficient? → concepts.md §Accounting Policy Choices
+- [ ] Is validation pipeline established? → structure_spec.md §Verification Structure
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| structure_spec.md | Modify | §Chart of Accounts |
+| dependency_rules.md | Verify | §Referential Integrity |
+| domain_scope.md | Verify | §Reference Standards/Frameworks |
+
+---
+
+## Case 8: ESG/Sustainability Reporting Integration
+
+### Situation
+
+Adding ESG (Environmental, Social, Governance) reporting requirements alongside financial reporting.
+
+### Case Study: ISSB S1/S2 Adoption
+
+International Sustainability Standards Board (ISSB) releases S1 (General sustainability) and S2 (Climate) requiring disclosures:
+- Climate-related risks and opportunities
+- Scope 1/2/3 greenhouse gas emissions
+- Climate-related financial effects
+- Transition plans
+
+Integration with financial reporting: sustainability metrics may flow into impairment assessment, provisions, contingent liabilities.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| New reporting standards | ISSB alongside IFRS |
+| Financial impact | Climate risks may trigger impairment, provisions |
+| Disclosure integration | Sustainability and financial disclosures connected |
+| Data requirements | Non-financial data (emissions, workforce) alongside financial |
+| Audit scope | Assurance on sustainability may be required |
+
+### Verification Checklist
+
+- [ ] Are ISSB standards applicable and adopted? → domain_scope.md §Reference Standards/Frameworks
+- [ ] Do climate risks trigger impairment or provisions? → logic_rules.md §Recognition Logic (Asset/Liability)
+- [ ] Are sustainability disclosures connected to financial disclosures? → domain_scope.md §Cross-Cutting Concerns
+- [ ] Is audit scope extended to sustainability? → concepts.md §Audit and Internal Control Terms
+
+### Affected Files
+
+| File | Impact | Section |
+|---|---|---|
+| domain_scope.md | Modify | §Key Sub-Areas (new sub-area) |
+| concepts.md | Modify | new §Sustainability Terms |
+| dependency_rules.md | Verify | §External Dependency Management |
+
+---
+
+## Case 9: Chart of Accounts Simplification
+
+### Situation (Shrinkage)
+
+Reducing chart of accounts to improve reporting clarity and reduce maintenance burden.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Account consolidation | Rarely-used accounts merged into parent accounts |
+| Subsidiary ledger preservation | Detail may be retained in subsidiary ledgers |
+| Historical comparability | Prior period re-classification may be needed |
+| System migration | ERP updates required |
+| Reporting impact | Simplified statements possible |
+
+### Verification Checklist
+
+- [ ] Are merged accounts documented with migration mapping? → structure_spec.md §Chart of Accounts
+- [ ] Is detail preserved in subsidiary ledgers? → concepts.md §Double-Entry Bookkeeping → Subsidiary Ledger
+- [ ] Are prior period statements re-classified for comparability? → dependency_rules.md §Period Dependencies
+- [ ] Are system changes tested? → structure_spec.md §Verification Structure
+
+---
+
+## Case 10: Interim Reporting Discontinuation
+
+### Situation (Shrinkage)
+
+Private company that went private or de-listed discontinues interim reporting.
+
+### Impact Analysis
+
+| Principle | Impact |
+|---|---|
+| Reporting frequency | Quarterly → Annual only |
+| Internal management reporting | May continue interim for internal use |
+| Audit scope | Annual audit remains; quarterly review discontinued |
+| Disclosure relief | Fewer mandatory disclosures |
+| Data retention | Historical interim data retained but not published |
+
+### Verification Checklist
+
+- [ ] Are regulatory requirements updated for private company status? → domain_scope.md §Reference Standards/Frameworks
+- [ ] Is internal reporting structure separated from external? → structure_spec.md §Verification Structure
+- [ ] Is audit contract updated? → concepts.md §Audit and Internal Control Terms
+- [ ] Are historical interim records retained? → domain_scope.md §Cross-Cutting Concerns → Audit Trail
+
+---
+
+## Scenario Interconnections
+
+| Scenario | Triggers / Interacts With | Reason |
+|---|---|---|
+| Case 1 (New Revenue Source) | → Case 2 (Standard Amendment) | New revenue patterns may reveal standard interpretation questions |
+| Case 2 (Standard Amendment) | → Case 5 (Tax Law) | Accounting change often triggers tax treatment review |
+| Case 3 (Consolidation Change) | → Case 4 (Foreign Currency) | International acquisitions create FX exposure |
+| Case 4 (Foreign Currency) | → Case 7 (Digital Reporting) | Multi-currency reporting requires XBRL dimensional tagging |
+| Case 5 (Tax Law Change) | → Case 2 (Standard Amendment) | Tax change may require accounting policy review |
+| Case 6 (Audit Standards) | → Case 8 (ESG) | Enhanced audit often includes sustainability assurance |
+| Case 7 (Digital Reporting) | → Case 9 (Chart Simplification) | Taxonomy mapping reveals chart consolidation opportunities |
+| Case 8 (ESG) | → Case 6 (Audit Standards) | ESG assurance expands audit scope |
+| Case 9 (Chart Simplification) | → Case 1 (New Revenue) | Simplified chart must still accommodate new revenue types |
+
+---
+
+## Related Documents
+- domain_scope.md — Classification axes, sub-area definitions affected by scenarios
+- concepts.md — Term definitions for scenario impact analysis
+- structure_spec.md — Structural basis for new elements
+- dependency_rules.md — Inter-statement linkages, referential integrity, external dependencies
+- logic_rules.md — Recognition, measurement, consolidation, tax logic
+- competency_qs.md — Questions verifying scenario handling