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Financials Tip #4: Changes to Asset Accounting configuration for IFRS

by Allison Martin

February 18, 2013

Take a minute to check out the following tip from Eric Barlow of Serio Consulting’s upcoming presentation the Financials 2013 event, March 19-22. Tips and Techniques to Manage Asset Accounting Activities to Stay in Compliance with IFRS


Changes to Asset Accounting configuration for IFRS

  • Asset Accounting requires parallel valuations to be tracked for each asset in order to produce financial statements in US GAAP and IFRS
  • Each valuation (depreciation area) must:

                  - Track cost and depreciation separate from the other valuations
                  - Be capable of using different useful lives and depreciation terms
                 - Be posted to the GL in order to produce financial statements by valuation

  • Most US-based FI-AA solutions manage a single valuation (US GAAP)
  • Managing and integrating multiple valuations f rom Asset Accounting into the GL is the first challenge to implementing IFRS in Asset Accounting!

 

IFRS Solution for FI-AA Using an Account Solution in 7 Steps

  1. Add new Depreciation Area(s) for IFRS
  1. Configure new area(s) to update the Alternative Accounts
  2. Add new accounts to the COA to receive the parallel valuation postings
  3. Adjust month-end processes to incorporate periodic processing from Asset Accounting
  4. Adjust GL and Asset Accounting reporting processes to incorporate new accounts and depreciation areas
  5. Adjust RICEFs to accommodate new areas and processes
  6. Build preventative measures to avoid mixing main and
    alternative accounts in an unbalanced posting

For more on SAP ERP Financials global rollouts join us in March in Las Vegas at Financials 2013, March 18-22 and follow me at @AllisonMartin14 for more information on upcoming Financials events.

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