New GL - Accounting Principles

[Former Member]

Hello,

We are setting up New GL and wondering whats the purpose of defining Accounting Principles.

We understand the concept of ledgers, we have defined one leading ( IFRS) and one local ledger ( supporting the local requirements of the countries) but whats the added value of linking a ledger to an Accounting Principle, is this just for information purposes or is this object been used in other areas?

Many thanks

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[atif_farooq]

Dear:

Linking your ledger with IFRS enhances the creditability of your financial reporting purpose. Public limited companies as you know have annual audits and they are required to follow the IFRS to ensure compliance with international reporting standard. This is for your information.

Regards