IFRS/USGAAP/LOCAL LEDGER

[Former Member]

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?

[former_member188826]

If you need to address IFRS, there is also an option of additional account approach. Saves, from creating an additional ledger. To produce statements in accordance with more than one accounting principle, it is not necessary to maintain a non leading ledger, additional separate accounts shall address the need.

Is the fiscal year common for all the GAAPs? If the fiscal year is different for one of the ledgers, you could create that as a non-leading ledger. You may note that exclusive CO postings in non-leading ledgers are not available.

We need to analyze various factors before we can take a decision. Some of the factors to consider could be

a) Are we using newGL feature?

b) Is the fiscal year common for all the accounting principle

c)What are key differing factors that affect your organization with respect to IFRS v. GAAP

the community can add more to it.

[Former Member]

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?

[former_member188826]

For differing fiscal years, you would need to have two different ledgers for certain.

[Former Member]

<<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.