IFRS Account based or Parallel ledger solution?

[Former Member]

Dear All,

We are currently in ECC6.0 with New GL activated, Leading ledger set up to USGAAP, Assets deprecation area also USGAAP. Now need to implement the IFRS reporting. What is the recommended best approach for doing that? Using account based (delta posting method) or parallel ledger approach? what are the pros and cons?

Concern is that, if we go for the parallel ledger approach then we need to use multiple SAP SLO service

1. To copy the USGAAP ledger to Non-leading ledger as IFRS

2. Migrate depreciation area to IFRS leading after the dual reporting period.

3. Migrate Non-leading IFRS to leading?

We will not need these migration service if we go for the Account based solution, but am not sure what I will be missing since seems a lot of the new functions will be developed based on parallel ledger instead of the account based.

Can anybody give me some advice what are the top 3 things that I need to consider to draw the right conclusion?

Thanks in advance.

Best regards,

MJ

[Former Member]

hi Jing Li,

I would recommend that you / business team review the major differences b/w US GAAP and IFRS applicable the business as a first step. WIth that well documented/understood, you'd need to think through the ramifications in your current system.

I would recommend the usage of parallel ledgers in most cases, since I have experienced account based solution before, and it was very messy indeed. I see no simple answer if you are already in ECC6, with a single leading ledger. Maybe you can consider copying the configurations to another set of company code(s) with dual ledgers? Then performing conversion? Not sure whether this will work out to be cheaper than approaching SAP's SLO.

Once the review of the major differences are done (a lot of on line resources are available for US GAAP vs IFRS), you'd be in a better position to go forward on the next step.

Best Regards,

Kelvin

[former_member188826]

An approach that would give clear visibility and reconciliation between the two accounting principles may be to use non-leading ledger. Consider that the IFRS based results via non leading ledger will serve primarily for the purpose of addressing legal requirements. Values directly posted into non leading ledger do not post to Controlling module, You may want to keep such postings to a minimum. They are purely company code driven.

With the NewGL in place, you may take advantage of the standard reports. If you go by account approach, more dependency will be on custom reports.

Initially, delta depreciation area can be created and posted to the non leading ledger to meet IFRS needs.

Non leading ledger would give more versatility in managing dual reporting.

[Former Member]

Hi, Account based solution good if you have not a lot of differenses.

Parallel ledger solution not good in some cases, eg you can't post to vendor/customer rec. account, also there is an issue for CO update.

Also there is one more solution-additional company code, here you can use all functional advantegas from accounts solution