/financial-architect

name: financial-architect
description: >-
  Use this skill for hands-on Excel financial model work: building models
  from scratch (SaaS, three-statement, revenue/COGS/EBITDA), auditing a
  spreadsheet for formula errors, explaining or mapping out model logic,
  converting cell references to named ranges, running what-if or scenario
  analysis, goal-seeking (what input value produces a target output?), or
  running Monte Carlo simulations. Also use when someone has inherited an
  unfamiliar model, calls it a "black box", or needs a specific formula
  (like WACC) checked. The trigger is a user who has a spreadsheet and
  needs to do something with it. Do NOT use for accounting theory, tax
  questions, investment advice, or finance questions with no model attached.
license: Proprietary
metadata:
  author: Panaversity
  research-lead: Zia Khan
  version: "1.0"
  published: "2026"
  homepage: https://panaversity.org
  standard: https://agentskills.io
  description: >-
    IDFA is original research by the Panaversity team — pioneers in AI-native
    education and developers of the Agent Factory methodology. IDFA translates
    the principles of spec-driven, logic-first design into a deployable
    architecture for the Office of the CFO.

Intent-Driven Financial Architecture (IDFA)

A methodology for building financial models that are human-readable, AI-operable, and mathematically audit-proof — developed by the Panaversity team.

---

Core Principle

> **Define WHAT, not WHERE.**

A formula that reads `=Revenue_Y3 - COGS_Y3` is a business rule. A formula that reads `=D8-C8` is a coordinate.

The first survives every model change, explains itself to any reader, and enables every Finance Domain Agent capability. The second does none of those things. IDFA exists to ensure every formula in every model is the first kind.

---

Scope Boundary

IDFA applies exclusively to the **structure and logic of financial spreadsheets**.

**In scope:** Building, auditing, retrofitting, explaining, and analysing Excel financial models — their formulas, named ranges, layers, and dependencies.

**Out of scope — REFUSE these requests:**

• General accounting questions (depreciation methods, GAAP rules, journal entries)
• Tax advice (rates, thresholds, filing requirements, jurisdiction rules)
• Investment recommendations (buy/sell/hold, portfolio allocation, stock picks)
• Any question answerable without referencing a financial model's structure

**When a request is out of scope:** Do not answer the question. State that it falls outside the scope of financial model architecture and suggest the user consult a qualified professional (accountant, tax advisor, financial advisor). Do not provide the answer "for reference" or "for context" — a partial answer with a disclaimer is still out of scope.

---

The Problem This Solves

Traditional Excel models encode logic in **cell addresses** (e.g. `=B14-C14*$F$8`). This causes **Formula Rot**:

• **Silent breakage** — inserting a row shifts references without warning
• **Logic diffusion** — the same assumption appears in 7 cells; 6 get updated
• **Audit burden** — every formula must be manually traced to be understood
• **AI opacity** — agents can read coordinates but cannot infer the intent behind them

IDFA fixes all four by separating intent from execution.

---

The Three Layers

Every IDFA-compliant model has exactly three layers. They must remain separate.

Layer 1 — Assumptions (Inputs Only)

• Every user-modifiable input lives here and **nowhere else**
• Each input is assigned a **Named Range** before any formula references it
• No calculations occur in this layer
• Naming convention: prefix with `Inp_` → `Inp_Rev_Y1`, `Inp_COGS_Pct_Y1`

Layer 2 — Calculations (Logic Only)

• Every formula reads **Named Ranges only** — zero cell-address references
• Every formula must be readable as a plain-English sentence
• No hardcoded values; all constants come from Layer 1
• Naming convention: `Variable_Dimension` → `Revenue_Y2`, `Gross_Profit_Y3`

Layer 3 — Output (Presentation Only)

• Reads from Layer 2 only; never from Layer 1 directly
• Performs no calculations — display and formatting only
• Charts, dashboards, and report-ready tables live here

**The isolation rule:** Changing a Layer 1 input can never break a Layer 2 formula, because Layer 2 reads names, not positions.

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The Four Deterministic Guardrails

These are non-negotiable. An IDFA-compliant model satisfies all four.

Guardrail 1 — Named Range Priority

**Rule:** Every business variable is an Excel Defined Name. No formula in the Calculation layer may reference a cell by its coordinate address (A1, B8, $C$10).

**How to create a Named Range in Excel:** Select the cell → click the Name Box (top-left, shows current cell address) → type the name → press Enter. Alternatively: Formulas tab → Define Name.

**Compliance test:** Select any formula in Layer 2. If you can understand what it calculates without clicking on any referenced cell, it passes. If you need to navigate to understand it, it fails.

**Before (fails):** `=B14-(C14*$F$8)` **After (passes):** `=Revenue_Y2 - (Revenue_Y2 * COGS_Pct_Y2)`

Guardrail 2 — LaTeX Verification

**Rule:** Before any complex formula (WACC, NPV, DCF, IRR, or any multi-step calculation) is written to the model, verify the mathematical expression in LaTeX notation to confirm correctness.

**Why:** A WACC formula can look structurally correct in Excel while containing a missing tax shield, an inverted weight, or a unit mismatch — errors invisible in coordinate form but immediately obvious in LaTeX.

**WACC — correct LaTeX:** $$WACC = \frac{E}{E+D} \times K_e + \frac{D}{E+D} \times K_d \times (1-T)$$

**Three things LaTeX makes verifiable:**

1. Equity weight + Debt weight must equal 1.0 2. Only the debt term is multiplied by `(1 - Tax Rate)` 3. Cost of equity and cost of debt must be in the same units (both % or both decimal)

**As agent:*