IFRS VS US GAAP

Hi,
Can some one throw some information related to IFRS Vs US GAAP.
I get some information but it is in general i am not able to understand.
Thanks in advance.
Regards,
Sankar

HI Durgashankar
Your Question is an open ended one......
pl follow this link: http://wiki.ifrs.com/
Home > Overview > Small and Medium-Sized Entities > IFRS for SMEs - U.S. GAAP Wiki > Wiki Home
to have more understanding about the comparison between IFRS and US GAAP, as on today.
If necessary Register in this site, which is free and get more insight about all standards.
I hope this will help you some extent... Please let me know if you need any more on IFRS & USGAAP.
Thanks & Regards
ukraghu

Similar Messages

  • Financial statements to comply with IFRS and US GAAP.

    Hi everyone,
    We need to start reporting our external financial statements to comply with IFRS and US GAAP.
    There are some primary differences in the 2 accounting principles relates to PPE (Fixed Assets/Capital Expenditure) and therefore multiple/different valuations of the assets, they need to be provided for.
    Do you know how we can comply with both the IFRS and US GAAP reporting requirements in general using the tools in SAP ?
    Thanks in advance and best regards.
    Dago

    Hi,
    A few tips: Asset Area 1 should be mapped to IFRS and linked to leading ledger. Area 20 is mapped to GAAP and liked to non-leading ledger. Area 1 should be 100% depreciated to capital expenditure in the very first depreciation run, which will allow you to report capital expenditure at the end of the month. Area 20 is for depreciation over the life (the regular GAAP stuff).
    Regards,
    Ming
    Edited by: Minghong Ji on Jun 15, 2011 6:48 PM

  • Accounting standerds: IFRS VS INDIAN GAAP

    Hi,
    I am using ECC 6.0. I want ot make my leading ledger as IFRS and Non Leading as  Indian Gaap. How can i mange the different accounting princiles within the Leading and non leading ledger. For e.g.
    If i make sales entry following entry will be get passed in leading ledger , and same will flow to non leading ledger .
    As per IFRS my entry for sale is
    Debtor a/c Dr. 95
         to Sales a/c  cr. 95
    But as per Indian GAAP  the entry should be,
    Debtor a/c Dr. 95
    cash Discount a/c Dr.5
         to Sales a/c  cr. 100
    How I can able to manage the discount account with Rs.5 for non leading ledger.

    Hi
    i have a solution for this:
    Maintain your leading ledger as per IFRS say 0l,Y1 as Indian GAAP
    enter your transactions using FB 50L and enter ledger group in the tab given
    Regards

  • Best approach for transition to IFRS from US GAAP

    Hi SAP Gurus,
    I have gone through some of SAP presentations and also 2 EcoHub sessions on IFRS.
    I understand the SAP's suggestion to use of Parallel ledger as best approach.
    Can any one clear below my queries?
    1.  Assuming current SAP system is in ECC 6.0 with classical ledger and we are trying to migrate to SAP GL.  It is suggested to migrate to SAP GL first (lets say by 2010) and plan for adopting IFRS as one of parallel ledger (Non Leading) as a separate project (lets say from 2012).  For the years 2012 & 2013 we will have reporting both in US GAAP & IFRS. Till here it is clear. I am not sure how we can drop reporting in US GAAP from 2014 when it is set as leader ledger while migrating to SAP GL.
    Is there a way to migrate the IFRS non leading ledger as Leading ledger by 2014 and deactivate 0L - US GAAP ledger from 2014?
    2. Although I understand the reporting in IFRS can happen prospectively from 2012 onwards, I am not sure how to build the open balances as of 2012. For E.g., how to get the current book values of Fixed Assets as per IFRS principles.
    3. Is it advisable to migrate to SAP GL with leading ledger as IFRS directly and marking one of non leading ledger for US GAAP reporting? And how to drop posting in US GAAP non leading ledger from 2014 onwards?
    Thanks in advance,
    Regards,
    Som

    Duplicate post

  • Legal Consolidation - A comparision between Indian AS, IFRS and US GAAP

    Hi Experts,
    Can any one shed light on the above subject?  My Client is based out of India and has business spread across US and Europe. Are there any significant variations between these standards?
    Thanks in Advance.
    Points will be given.

    Hello Harikrishnan,
    To start with, there is nothing like legal when it comes to consolidation.  We prepare Group accounts to take into account the increase/decrease in the shareholders funds of the parent company.  In doing so we follow rules which are generally accepted at local country level also known as GAAP or at an international level also known as IAS/IFRS.
    Companies own companies and the parent company is required to pay taxes on the global profits and parent company's country of incorporation is used as tax base.
    My understanding of Indian Standards are limited and therefore providing information only for US GAAP and IFRSs.
    Accounting rules in the US is heavily controlled especially post-Enron collapse.  The have legislation to govern and investigate anything that is not correct.  While US GAAP is pretty much in line with overall impression of standards, some rules vary like treating the value of inventory and recognition and derecognition of property, plant & equipment also known as Tangile Non-Current Assets.  It is not possible to give you full explanation but some rules varies.
    With the full comprehensive development of International Standards, more and more countries are following IFRSs to local GAAPs.  In many countries like Australia and New Zealand, they just added country names before the IFRSs and made that their local GAAP to avoid confusion and differential treatments.
    Hope the above would be helpful.
    CONMJI

  • Dual Reporting IFRS and US GAAP

    Hi,
    anyone here who have implemented dual reporting US GAAP and IFRS at the same time? Hope you could share on how to implement this. Is implementing parallel ledgers enough?
    Thanks.

    We just implemented IFRS accounting without effecting GAAP accounting.  No parallel ledgers were required.  Our strategy was to start with GAAP chart of accounts and identify all accounts as follows:
    o   Common u2013 Both U.S. GAAP and IFRS standards are the same.  No adjustments to U.S GAAP
         accounting are necessary to meet IFRS.
    o   Re-class u2013 U.S. GAAP costs are classified differently under IFRS.  Costs must be u201Cmovedu201D to
        the proper accounting classification in the IFRS financial statements.
    o   Elimination u2013 U.S. GAAP costs are not applicable in IFRS reporting and are eliminated from the
         IFRS financial statements.
    o   Valuation u2013 U.S. GAAP Costs are applicable in IFRS but must be revalued from a U.S. GAAP basis
         to IFRS basis in the IFRS financial statements.
    We then created new accounts preceded with an u2018Iu2019 concatenated with the original account.  Any adjustment required to meet IFRS is booked to the u2018Iu2019 accounts only.  Our GAAP financial statements include only the original accounts (i.e. no accounts that begins with u2019Iu2019).  Our IFRS statements include all the GAAP accounts plus the IFRS accounts.
    The naming convention was carried through to all modules in SAP.   In CO, we also had a naming convention to segregate IFRS related objects.
    Works slick and the external orders are happy.

  • WIP according local GAAP vs IFRS - only one result analysis key

    Dear experts,
    I am faced with the following issue. We use WBS-elements for long running activities. We set result analysis key on WBS-element for periodic WIP calculation. The actual result analysis key is set up according local GAAP.
    Now we want to implement parallel accounting according IFRS. Here we can use percentage of completion for valuation of our project(s).
    How can we handle two methods of WIP calculation? We can only set one resulat analysis key on WBS element?
    How do you handle this issue.
    Thanks for your reply in advance
    Regards,
    Butch

    Thanks for the quick feedback.
    Maybe some additional information:
    01 - IFRS (real time link with FI)
    02 parallell currency deprec area
    20 - LOCAL GAAP
    50 - Grants IFRS value (investment measure support area)  linked realtime to FI
    51 parallel currency deprec area of 50
    60 - Grants Local GAAP
    I already checked the SAP library and the SDN forum, but could not find anywhere how to set up the depreciation area(Grants LOCAL GAAP) to which the investment measure is not directly linked to (not the support area (50) in Tr ANVEST).
    Is it possible with only one investement key to fill the IFRS (50) & Local GAAP (60) value investment depreciation area and still depreciate them in different ways?
    Thanks again!
    Kr,
    Roeland

  • Inspiration needed on IFRS change to US GAAP

    Dear gurus
    I a need a little inspiration on this scenario:
    A company that is using IFRS has been acquired by another company that is reporting according to US GAAP!
    How do I change the accounting principles (change posting principles in G/L) from IFRS to US GAAP without resetting FI-AA? Incl. an update of u201Cfairu201D APC values?
    Any help would be appreciated << Please do not offer points >>
    Edited by: Rob Burbank on Sep 21, 2010 2:39 PM

    Each situation is very specific, I can´t give you any advice really. You need to contact SAP consultant.
    Best regards,
    Blaz

  • IFRS - Ledger / Fiscal Year Selection.

    Hello,
    We would like to implement New GL with IFRS compliances . Please clarify on following  doubts:
    1 . Whether Leading Ledger would be for IFRS  or Indian GAAP ? 
             What are the Pros and Cons of each selection ?
    2. What exactly differences with Leading Ledger Vs Non Leading Ledger
    3. Is it mandatory to follow Calender Year ( Jan to Dec) for IFRS compliance.
    Regards,
    Sujana

    Regarding your first questions, as india is moving towards complying completely with the IFRS, it would be better to have your leading ledger in IFRS and then the non-leading ledger in Indian GAAP. This way you will not have re-work. However, once you have activated a way of principle for one ledger, it is difficult to re-do and go to another ledger.
    Therefore, caution and a lot of discussion with your client and their auditors is required about the timelines on compliance with IFRS
    On your second question:
    As SAP says leading ledger should be based upon main reporting GAAP. non-leading ledger will be based upon additional reoprting requriements. For example if the company is EU based and it has operations in US and China then it should have leading ledger with IFRS. Non-leading ledgers with USGAAP and China GAAP.
    Regarding your third questions :
    IFRS does not put any restriction on usage of year. financial year is local legal requirement and rule of the land.

  • IFRS/USGAAP/LOCAL  LEDGER

    Hi experts!
    I have to configure 3 ledger.
    I need to report in IFRS in 2011, and the other ledger and I have to define a leading ledger and non leading leadger, what is your recommendation, define a leadind ledger according IFRS or USGAAP or Local, which of the three option would be the best option as leading ledger and Why?

    <<thanks!
    I going to have:
    a) the New GL is going to be active.
    b) the same accounts for all companies
    c) I don´t know in this moment, if I going to have different fiscal year for the non-leading ledger.
    - what, would be happen if I have different fiscal year?
    >>
    Please refer to the following document pages 11 - 12
    http://www.google.com/search?q=CONVERTINGTOTHEINTERNATIONALFINANCIALREPORTING+STANDARDS&sourceid=ie7&rls=com.microsoft:en-us:IE-SearchBox&ie=&oe=
    This should answer most of your questions.
    Some key points:
    - Do you have CO-based reporting? If so, please note that only your Leading Ledger posts to CO.
    - Do you need to change Leading Ledger accounting methods later? If so, this needs to be treated as a separate migration, and may require SAP SLO support + extra fees if depreciation area changes are involved.
    - You can setup different fiscal years per each ledger...The leading ledger should be your home office/headquarter's fiscal year.
    - What accounting method will be used in day-to-day business? This should be the leading ledger...
    - I would strongly advise you not set up another country's specific statutory ledger as the leading ledger. You should narow down your choices between the international standard (IFRS) & the local GAAP of the corporate headquarters.

  • How to multiple/ parellal sets of books to generate more than one financial statement based on different (or the same) accounting principles.

    How to multiple/ parallel sets of books to generate more than one financial statement based on different (or the same) accounting principles.
    My Client needs Parallel Ledger in SAP B1 similar like SAP ECC. Is this functionality available ?

    Dear Mr. Nagrajan,
    Thank you for your response. I have already gone through documents but not able to understand. Is there any setup for this ? or its just work around i.e. using template and special field in JV i.e. Ref. 1 /2
    My doubts :
    I understand that Chart of Account structure is one and common for IFRS and other accounting method. We need to create only those account separately ( 2 times with prefix like IFRS revenue account, GAAP Revenue account).
    Now at time of entry, Assume some entries / adjustment are specifically for IFRS and not for other ledger. In this case, What need to do ?
    You have mentioned about DTW approach but do we need to insert all JV's again with other ledger ?
    Someone suggested that if any entry which are specific to IFRS Ledger, We need to user Ref.1 /2 column or Transcation code column and in which we can put IFRS
    Based on this, Need to create 2 seperate template for IFRS and other ledger for all report.
    This is my understanding of Solution in SAP B1. Please help me to clarify my though process
    Please do needful.If you have done implemenation and if you can share doucment, it would be great help.
    Email :[email protected]

  • Capitalization of an investment order/project - Original cost elements

    Hi all,
    I do have a question concerning the capitalization of an investment order/investment project onto an asset under construction (AuC).
    I have configured the system in a way, using capitalization key and capitalization versions, that I can capitalize 100 % of the costs within the IFRS depreciation area to the AuC and 0 % of the costs within my local gaap depreciation area to the AuC.
    Instead of capitalizing the costs within the local gaap depreciation area, the cost are booked to the u201CAccount for capitalization differences/nonoperating expensesu201D.
    With the settlement of the investment order/investment project to the AuC the original cost accounts/cost elements (shared between IFRS and local gaap) are credited and the AuC is debited for the IFRS deprecation area and the u201CAccount for capitalization differences/nonoperating expensesu201D is debited for the local gaap depreciation area.
    My problem is, that I do not want to have the costs for my local gaap P&L on the u201CAccount for capitalization differences/nonoperating expensesu201D, I do want to have them instead on the corresponding local gaap cost accounts/cost elements to  the original shared cost accounts/cost elements within FI and CO. 
    Is there any possibility to do this within SAP Standard?
    (If possible the solution should also work within New GL, using multiple ledgers for parallel accounting instead of different account)
    Thank you!
    Regards

    Hi Prad,
    I am on 4.6C/D.
    Please check on your settings for Capitalization of AUCs created through Investment Support Measures: -
    1. Go to the IMG, Asset Accounting under Special Valuation and determine the Depreciation Areas you would like your Investment Support Measures to post to.
    2. Still in Special Valuation, define an Investment Support Key and assign it to the relevant depreciation area
    3. Also, define the relevant account determination for such posting under the Special Valuation
    4. Proceed in the same area to define the Transaction type for the Investment Support Measure by changing any of the Standard ones in there in line with your requirements
    5. Now move back to IMG, Asset Accounting then Master Data. Here you go to the screen layout and pick the relevant asset class for AUCs. Get this logical feild group and pick on the item Investment Support. Proceed to define its feild group rule as optional at the required asset maintenance level (Main Asset and/or Sub Level)
    6. Leave the IMG and access the relevant AUC's Master Data from the User Menu. Click the tab Investment Support and insert the Investment Support Key you created in note 2 above
    7. Now capitalise the AUC. Should work

  • Error- Postings to G/L accounts with open item management are not permitted

    Hi,
    Can't we post to a GL, which is open item managed, in a non-leading ledger (statutory ledger)? We get this error when we try to post an entry, in the statutory ledger, to a GL that is open item managed.
    Can anybody explain this, please?
    Regards,
    Mike

    This is due to a design with the new GL.
    In the new G/L accounting, when you use a particular ledger or ledger group, you can no longer make a direct ledger specific posting to accounts managed on an open item basis or to accounts with an account type not equal to 'S'.
    You need to do posting with ledger group blank, which updates all the ledgers. The idea is, for open item accounts, all the ledgers should be in sync. for open item accounts IFRS and Local GAAP values are never different.
    If you are doing this to do some correction posting while doing year end posting or migration for example. (A typical example is when an account is made open item managed at a later date). You need to change temporarily message control using transaction SE91 to force ledger specific postings to OI accounts

  • Transferring Standard and Actual costs to COPA

    Hi,
    We are using 3 valuations (Legal, Profit Center and Group Valuations). In order to transfer standard and actual costs to COPA for all 3 valuations do we need to create 3 costings (total 6) for transferring standard and and 3 costings keys for transferring actual costing to COPA?
    Thanks.

    Hi Ravi.
    Very interesting question!
    1: Ledgers in FI are not related with Material Ledger Valuation. EG, in FI you can have IFRS, TAX, and GAAP; and in ML You can have "currency/valuations"  Legal, PCA / Group. Keep in mind this are different stuff.
    2: In Material Ledger, you can valuate your stock according to different ledgers, with the bussiness function FIN_CO_COGM (Paralell cost of goods manufactured). The idea of this BF is have alternative valuations assigned to the principles (IFRS, TAX, GAAP), so in FI you can accomplish different Stocks, COGS and on accounts, based on different accounting principles. You can understand this as the brothers of FI Ledgers, in order to do product costing.
    3: In PA, you only post (or transfer) one record.  You have to decide if use "Local, Group, PCA or Paralell Cost of Goods Manufactured". (Im 90% sure based on lot of reading, maybe im missing somethings).
    Please, check this old post. Waman is a good source of info!
    CO-PA & IFRS
    Hi Waman!Waman Shirwaicar Could you please clarify the concept?  This is a topic that there are not much info!
    Arturo.

  • Why do we need more than one retained earnings accounts & what is the use?

    Hi FI Experts,
    Why do we need more than one retained earnings accounts, what is the precise use of two?
    I know the retained earnings account is used to carry forward the balances during the year end to the balance sheet and there by making the p&L A/cs balances as zero.
    I guess the second one is used for different valueations for example  as depreciation accounts for different valuations will have different retained earnings accounts.
    Kindly correct me if I am wrong and eloborate on the use having more than one retained earnings accounts.
    with regards
    Ramesh Y

    Hi,
    Well, separate retained earnings accounts are used for parallel financial reporting, it means when you need to report in accordance with, for example, local GAAP and IFRS or US GAAP at the same time. Several retained earnings accounts  are necessary when the company chooses account based approach for parallel reporting. (GL accounts are broken down into several groups, for example you use different accounts for IFRS valuation, for local GAAP and they are also shared accounts common for both principles.)
    m.

Maybe you are looking for