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
Similar Messages
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Reporting, local gaap and ifrs gl acc
hi
1) i would like to know why 2 sets of book? in the coa, there are main gl account, ifrs gl account and local gaap account. i am thinking 3 sets. please clarify.
2) double entry on DR/CR for main gl account, DR/CR for ifrs account, DR/CR for local gaap account. right?
3) can have mix of gl account in double entry? DR main gl CR local gaap or DR local gaap CR ifrs account.
3) what kind of transaction post to local gaap? can have example?
4) why need to have local gaap account although having main gl account? can have example?
thanksParallel account work like this:
1 In new GL u have the concept of leading ledger and non Ledger.
2 Leading ledger will inherit all the properties of the company code settings like currency, fiscal year variant etc.
3 you can define two additional currencies in addition to company code currency for each company code
4 Defining non leading ledger is optional for which u can assign depending upon the requirement different currency and fiscal year variant
5 When u are posting to the company ocde system will post for all ledgers assigned to the company code. (leading and non leading)
6 If u want to make posting only to a particular ledger for gap requirement u can make posting only to that ledger either leading or non leading ledger
7 U can define as many non leading ledgers as the need be
8 U can assign the non leading ledgers for each accounting principles
I think i have covered most of the points pl let me know u have any -
Hello Experts,
My client had dep area 01 for local gaap(posts leading ledger) and 30 as IFRS(posts non leading ledger), Delta dep area 31(31-01) post to non leading GL posting setup as below
Dep 01: Real depreciation GL Posting indicator as 01 ledger group as leading ledger
Dep 30: real Depreciation area GL Posting indicator as 03( Posts Depreciation only) ledger group as non leading ledger
Dep 31: Derived Depreciation (delta between 01 and 30) GL posting indicator as 06( Posts APC directly) ledger group as non leading ledger
The above set is as per the SAP standard setup.
Questions:
1. Delta Depreciation is not posting any difference depreciation to non leading ledger where client want to post the differences to non leading ledger.
how to achieve this, is any set up am I missing
Your advise would be greatly appreciated.
Thanks
MohiniHi Mohini
You need to run ASKBN so that the Delta dep posts to Ledger
br, Ajay M -
Module changes in SAP from GAAP to IFRS
Hi,
I would like to know from you IFRS experts with SAP if you could please tell me the following
What are actual changes within SAP modules FI, MM, PP, CO SD from GAAP to IFRS?
In addition, what are the actual physical field or option changes that will take place. (I know one is tax, which will affect tax juristicion input, acc in or out for balance sheet fields within FI)
I cant seem to put my finger on any other key changes within SAP, thank you.<<Hi,
I would like to know from you IFRS experts with SAP if you could please tell me the following
What are actual changes within SAP modules FI, MM, PP, CO SD from GAAP to IFRS?
In addition, what are the actual physical field or option changes that will take place. (I know one is tax, which will affect tax juristicion input, acc in or out for balance sheet fields within FI)
I cant seem to put my finger on any other key changes within SAP, thank you.>>
This is a very open ended question. In general all the changes are within FICO currently (GL, AP, AR, Assets are the biggest). SAP R&D is currently looking into enhancements within MM/SD to include New GL functionality.
From a field change standpoint, the biggest that come to mind are:
- Ledger field can be input in FI postings (FB50L) to book to specific ledgers in New GL
- Segment field, which can now be used for dimensional reporting.
Most of the fields stay the same, it's the nature in which they are treated that changes (biggest change: PROFIT CENTER if splitting is activated, GLPC* tables go away and move to the *flex tables). -
DATA TRANSLATION FROM GAAP TO IFRS USING BFC STARTER KIT
Dear All,
1.Does the Starter Pack provide data translation from GAAP to IFRS especially when the underlying GL is a non-SAP GL?
2.What are the specific u201CAutomated controls, business rules and calculationsu201D that are performed in the starter kit as stated in the presentation?
3.For banks not using SAP ERP, what combination of SAP solution will you advise that they take and why, if they must beat the January 1, 2012 deadline.
4. Where SAP GL is in place, what relevance will the IFRS Starter pack provide?
5. Can't I just build a universe in BOBJ to do the data translation from GAAP to IFRS and display the report in the IFRS format?
Thanks for your adviceHi and sorry for the late answer.
You may find answers to your questions in the paper about "IFRS adoption in consolidated statements with BOFC".[http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/30effe30-6c44-2d10-c48a-fb26102b0bf6]
Be aware that BOFC is a consolidation product, it doesn't cover the same areas as the GL.
Regards
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Would you need further information, or real-time update on all new IFRS/XBRL assets for SAP BusinessObjects solutions I would recommend you join the following social media:
- Facebook http://www.facebook.com/sapifrs
- Twitter http://twitter.com/SAP_IFRS_XBRL
- LinkedIn http://www.linkedin.com/groups?mostPopular=&gid=1851849 -
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,
ButchThanks 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).
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Thanks again!
Kr,
Roeland -
Asset Posting date different in Book depreciation and IFRS depreciation.
Hi SAP gurus,
i have a problem in Asset Accounting.
The posting date of the asset is taken as 05.05.2008 in Book depreciation and it is taken as 28.02.2008 in IFRS books..
How do I change the posting date to 05.05.2008 from 28.02.2008 in IFRS books.
I have tried to reverse the transaction in IFRS but these transactions have no effect on Fixed assets register.
Please help me.
Thanks
HariHi Hari
Did u try to reverse thru FB08 or AB08
All Asset accounting documents posted which needs to be reversed should be reversed with AB08 not FB08.
Secondly I believe IFRS is one of your dep area. Did you do a transfer or acqusition and what is the relation of IFRS dep area to Book dep area?
Sanjeev -
Acuisition of a Company based on US GAAP by IFRS based parent .
Hi
A very abstract/high level question.
We are in process of acuiring a new company which is reporting based on US GAAP & our organization is based on IFRS
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Additionally we have fiscal year from Jan to Dec ,they have from july to June ?
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I agree with Greg, for me it also does not looking like an abstract question.
I'd say it's a demand for particular projects solutions. With the formulations of the bunch of the project's problems in general words, without any details. The more general the question, the more general the answer. -
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I'd need to know if there's any template that could help an implementation team to develop the consolidation processes to comply with IFRS. I know there are several BPC (OutlookSoft) implementations in Europe that comply with IFRS reporting standards.
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Diego.Hi,
Our company has been around for several years now and we come from an OutlookSoft background. We have been implementing IFRS applications on OutlookSoft and we have our own standard. Check on cfobelux.com and drop me a mail (use the contact page)
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Leading ledger can be local GAAP? Pros and Cons. 1 company code scenario
My client /the company uses 2 GAAPs: local GAAP and IFRS.
I have read that "the leading ledger is based on the same accounting principle as that of the consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company codes (if posting is not ledger specific)."
If we have only 1 company code can we have local GAAP as the leading ledger? What are the pros and cons?
ArjanHi,
Local GAAP must be a leading ledger because country you are operating your business will require wide reporting like financial statements, tax registers, stock registers. So, primary posting will be related to your local GAAP which will be directed to both leading and non leading ledger. If there are certain things which are required to be altered then you can post the differences exclusively to the non leading ledger using transaction FB50L.
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Product and Region wise Balance Sheet
Dear Experts,
I am working in a project right now and the company requirement is to get the Balance sheet as follows
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Regards
Lakhbir SinghHi,
I believe both US GAAP and IFRS have this requirement.
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http://help.sap.com/erp2005_ehp_04/helpdata/EN/e8/da2c4057cb185de10000000a1550b0/frameset.htm
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Ming -
How can I get 'K-IFRS guidebook for applying SAP solutions' ?
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How to clear the open item for non-leading ledger?
Hi, Experts,
I have two valuation area VA001 and VA004 and two accouting principle GAAP and IFRS.
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you do posting in TRM, but clearing is done in FI, so I moved the thread.
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