Note references that stay in step
How note references stay in step with the statements in Achekam when notes are added, removed or reordered, and the reading checks still done by hand.
By Achekam · · 4 min read · For Accountants & audit firms in South Africa, Nigeria, Kenya
Few things undermine a set of statements faster than a broken cross-reference. A reader follows the note number beside trade receivables and lands on the leases note, or finds that the inventories line has no note at all although one sits in the set. The figures may be perfect; the reader's confidence is not.
References break because sets change. Notes are added when a client takes on a lease, dropped when a loan is repaid, reordered when the partner prefers a different sequence. This article covers how references behave in Achekam and the reading checks that keep a set coherent.
Why broken references undermine a set
A note reference is a promise: the explanation of this figure is over there. When the promise fails, three things happen. Readers stop trusting the cross-references and stop reading the notes. Reviewers lose time checking every reference by hand. And regulators and lenders, who read many sets, take it as a sign the preparer was not in control of the document.
The presentation standards ask for notes to be presented in a systematic order and for each item in the primary statements to be cross-referenced to any related information in the notes. The IFRS Foundation's summary of IAS 1 sets out those overall requirements for the presentation, structure and minimum content of financial statements; IFRS 18 replaces IAS 1 for periods beginning on or after 1 January 2027, and IFRS for SMEs carries similar requirements of its own.
A reference appears only when its note is in the set
In Achekam, a line carries a note reference only when that note is in the set. That one rule removes the most common broken reference of all: a pointer to a note that was deleted or never written.
It also means references follow content rather than being typed by hand. Notes take their figures from the mapped trial balance, so when accounts move into or out of a line, the note that explains that line comes into play or drops out with them. In practice:
- Removing a note removes the references to it.
- A line whose note is not in the set carries no reference pointing at nothing.
- A line whose note is in the set shows the reference, whether or not the note's wording is finished.
The last point deserves emphasis. A reference that lands correctly on a note still full of "[to be completed]" markers is valid in form and useless in substance. Facts the trial balance does not hold are left marked that way for a person to complete, and a reference does nothing to fill them.
Adding a note for a custom line
Custom lines add a wrinkle. A firm can add its own statement lines and groups and reword any row title, and each custom line still totals into a standard line. That keeps the figures in the notes consistent, but it raises a presentation question: which note explains the custom line?
Work through it for each one:
- Identify the standard line it totals into.
- Read that line's note and decide whether it explains the custom line properly.
- If it does not, add wording to that note, or write a separate note, so a reader who follows the reference finds what they expect.
- Check that the row title in the statement matches the heading the reader will find in the note.
Custom lines themselves are covered in adding your own statement lines and wording.
Checking ties between statements and notes
Two kinds of check apply, and only one of them is automatic.
Figure ties. Achekam's Validation & Math Engine runs fixed, non-AI checks such as double entry and note ties. Separately, staff can run an automated review of a draft that lists findings for a person to accept, resolve or dismiss. Neither blocks signing; both are advice for the reviewer.
Sense ties. No check confirms that the note a reference points to actually explains the line in words a reader understands, or that the numbering a reader sees runs cleanly. That is a reading job. After notes are added, removed or reordered late in the job, read the set from front to back and confirm that the notes are numbered in order and that every reference lands on the right heading.
A final read-through before issue
Before the partner signs, someone who did not draft the notes should do a reference read. A practical routine:
- Start at the statement of financial position and follow every reference to its note and back.
- Repeat for the statement of comprehensive income, the statement of changes in equity and the cash flow statement.
- In each note, confirm that the total agrees to the statement line and that no "[to be completed]" marker remains.
- Check references inside the policies: where a policy names a note, the note should exist under that number.
- Confirm that notes no statement points to, such as related parties, commitments and events after year end, still belong in the set.
Each set names a preparer, a reviewer and an engagement partner, and this read belongs with the reviewer. The draft is rebuilt whenever the trial balance changes, with figures recalculated in code and any text block a person edited kept as it was, so a late rebuild is the moment to repeat the read. Policies and notes more generally are covered in accounting policies and notes.
A set whose references all land where they should reads as the work of a firm that was in control from the first page to the last.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
