Parallel Ledger in "New Ledger"

Question

Hi,
In the new ledger we have the facility of posting to a parallel ledger,by way of non-leading ledgers
We maintain this parallel ledger to meet a specific accounting principle,say,US GAAP,IFRS etc.
In IMG we define the "Accounting Principles"  and assign them to the ledger groups.
Once done the system posts the documents to this particular non leading ledger.
My question is:
Every accounting standard has its own peculiar accounting treatment in terms of valuation etc.How does the system understand these priniciples and standards and treat them accordingly?
For example, i configure IFRS as a non leading ledger.
IFRS has its own peculiar set of accounting principles.
How does the system appreciate,understand these principles and treat them?
In other words i would like to know if the database of these "accounting principles"are defaulted in the system or Do we need to default them?
Pl.reply me specific to the question.I dont want any help on menu path,config.etc.I have already done this.
Thanks.
Regards.
Ramesh

Answer 1

Hello Ramaswamy,
The very precise answer to ur question is as following.
if the database of these "accounting principles"are defaulted in the system? No
Do we need to default them? Yes
In IMG when u define the accounting principles and assign it to ledger groups it is only the skelton u define where in additionally the database is required to be put specific to the defined accounting principles.
To give u an analogy I can sya that it similar to defining Financial statement version to some extent.
Hope this helps.
Rgds
Manish