IFRS Postings

[Former Member]

In the current environment we have one leading ledger and one non leading ledger. However now we are moving to IFRS and per the team they would like to make leading ledger as IFRS ledger and non leading ledger as GAAP. The question is can we make ledger specific postings to leading ledger? If not then what is the alternative to support this design.

Thanks,

[Former Member · Accepted solution]

you don't have to configure multiple ledgers to capture two sets of accounting principles. this can also be done by extending your chart of accounts. whichever way you end up going your auditors will have to understand and approve before they certify your financial statements.

[Former Member]

Hi,

You mention that you are already using one leading and I non leading ledger. Once you have chosen the leading ledger to represent a particular accounting method, you cannot change it later.

So in your case, if you are already using leading ledger for local GAAp, you cannot now change it to use leading ledger for IFRS. You can however configrure an additional non leading ledger and use it for IFRS.

Ledger specific postings can be made to the leading as well as to the non leading ledgers. i,e. you can choose the ledger to which you want to post to, during document entry. So you can post a document only to the leading ledger with no effect on Non leading ledgers and vice versa.

Hope this helps.

Thanks,

Uma Toraskar

[Former Member]

Thank you for answering my question, just as it entails, what is the impact of Accounting principle setting in SAP. We are debating on having Leading Ledger as our IFRS ledger (currently set on GAAP Accounting Principle) and non leading ledger as our GAAP ledger. If we go on this path, which means that the ledger accounting principle will be set on GAAP however we will be doing ledger specific postings on Leading Ledger and analyze the same for IFRS and non Leading Ledger where all other postings will flow will have only GAAP related postings. So if we don't change the accounting principle, can we still have Leading Ledger as our IFRS Ledger, what are the implications?

Thanks,

[Former Member]

Hi,

Yes, I think you can do that. However the comparative reports will show incorrect picture when you are comparing the earlier years data with current years, after the switch.

Reports would show comparisn between GAAP(earlier year) with IFRS(new year after change) and vise versa.

I think the accounting principle setting is just a kind of description and does not have any impact .

Also I think you also need to discuss this issue with auditors and get their buy in.

Thanks and Regards,

Uma