Can any body guide me Regarding IFRS implementaion in SAP ECC6.0?

[Former Member]

Hello every one ,

Can any one give me brief idea about how can i start to implement IFRS with SAP ECC6.0?

Would any body suggest best document which will help me in details (Step by step Guidence) ?

I want to know the key chnges required in SAP to implement IFRS.?

Thank you In advance

Deepak Pawar

[krishnakishore_gaddam · Accepted solution]

Hi,

About your query on how to start implementing IFRS with SAP ECC6.0.....

You can use leading ledger and non-leading ledger in ECC 6.0 to acheive IFRS and Local accounting standards.

Example:

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Leading ledger 0L is posted based on IFRS principles and itu2019s the group accounting standard for all legal entities. Each company code posts their IFRS figures using this ledger.

Non-Leading Ledgers are posted based on Local GAAP and tax GAAP rules.

For Example if you have legal entities in US and in India(IN).

US company codes use Non Leading ledgers L1 for Local US GAAP and T1 for Tax GAAP.

IN Company Codes use Non Leading Ledgers L2 for Indian GAAP and T2 for Tax GAAP.

Both of them use a different fiscal years for local reporting purposes.

Any new Legal entity will use Leading Ledger 0L but they have to create 2 new non-leading ledgers L3 and T3 to cover there local requirements.

Regards,

Krishna Kishore

[Former Member]

Hi All,

In my current implementation, we plan to set up the ledgers as follows: 0L - US GAAP; L1 - US TAX and L2 - Local GAAP (we have two separate countries i.e. UK and Canada besides the parent US). My question is as follows: For the local GAAP for UK and Canada, do we have to have separate non-leading ledgers or can we just have one for non-leading ledger for both the countries?

Any help understanding this would be appreciated.

Thanks

[former_member188826]

My thoughts on IFRS and how technology can be influenced to address the compliance.

The whole topic starts from the basic need of presenting financial statements to compliance authorities like SEC. In the US context, these statements are prepared in accordance with US GAAP. This is more a rule based compared to a principle based IFRS. The requirement in the near future would be to prepare financial statements based on IFRS. There are several areas where IFRS differs from US GAAP. First we need to know all these differences that impact a public organization. Only upon ascertaining the differing areas, can an organization address preparing financial statements per IFRS.

So, typically, there would be an overlapping period when financial statement need to be prepared per both the standards before it becomes mandatory. In order to accommodate these, SAP broadly has to options, either to have a separate ledger or separate accounts. In the separate accounts method in a same single ledger, you can use those accounts that are common for US GAAP and IFRS. Create only those accounts that addresses IFRS specifics. These could be in a different number range and easily identifiable. With ECC6, you have the newGL feature, wherein you can have a leading ledger to address one set of standards and a non leading ledger for the other. Once an organization with the help of their auditors have scrutinized the differences, the decision to adopt could be easier.

The format of IFRS compliant financial statements are available through SAP's starter kit for IFRS. This kit can be integrated over and above the Busienssobjects Planning and Consolidation or Financial Consolidation.

[Former Member]

Dear Sridhar,

We are in 6.00 with Indian GAAP as Leading Ledger. Ho can we convert LEading Ledger to IFRS.

Regards,

Alok

[surs_mittal]

Hi Alok,

You will have to consider SLO and migration related activities if you wish to change your leading ledger

http://www.google.co.in/search?q=CONVERTINGTOTHEINTERNATIONALFINANCIALREPORTING+STANDARDS&sourceid=ie7&rls=com.microsoft:en-us:IE-SearchBox&ie=&oe=&redir_esc=&ei=h3XaTOfSGYq3cJDrscMG

[Former Member]

Thank you Kishore for you ans ,

Additionally i would like to ask can we flow Controlling data (CO) through leading ledger as well as Non leading ledger ??

Thank you in Advance.

[krishnakishore_gaddam]

Hi,

Only the values from the leading ledger are posted to CO.

Regards,

Krishna Kishore

[Former Member]

Hi,be aware that it's not possible to use Reconciliation accounts in non-leading ledger!