US GAAP and IFRS

Hi,
my clients is Indian company. Now they wants implement SAP (ECC 6). They are asking, other than standard ledger they want US GAAP and IFRS reports also.
So can some one tell me how to configure this in SAP and what are the impacts on other modules if we activate Parallel Accounting.
Thanks
Rams N

Hi,
Parallel Accounting supports multible accounting principles. For your client Accounting principle reporting requirements could include local Generally Accepted Accounting Principles (GAAP), US GAAP and International Financial Reporting Standards (IFRS).
SAP Provides Additional Ledger feature from ECC 5.0 onwards. With this feature Data recorded in the general ledger is recorded in multiple ledgers. That means apart from the leading ledger you can maintain 2 additional ledger to fulfill your requirement i.e. Local GAAP and US GAAP. The ledgers are assigned to specific Accounting Principles and difference postings can be recorded to specific ledgers through a single user interface. Foreign currency valuation methods can be assigned to specific ledgers and fixed asset accounting for various accounting principles is managed through the use of depreciation areas and ledgers.
When it comes to impacts i worked on FCV, Asset Depreciation and Accrual Engine using the New GL with ECC 6.0. I have identified below changes during my workout. May be some more impacts might be there in other application areas with the introduction of parallel ledger.
1. In asset accounting ledger groups are assigned to the depreciation areas. Consequently, postings are made to separate ledgers in FI. The leading ledger has to be assigned to depreciation area 01.
2. Within the General Ledger Receivables / Payables / foreign currency balance sheet accounts may be valuated differently on the basis of different accounting principles. Accruals and deferrals need to be allocated to the relevant periods. The use of parallel accounting may mean that different accrual/deferral postings need to be made, depending on the accounting principle. This needs Assignment of the accrual method to the accounting principle (determination of the ledger group).
Hope it will give some inputs to your requirements.
Regards,
Krishna Kishore

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