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Friday, January 22, 2010

International Financial Reporting Standards (IFRS) Reporting

International Financial Reporting Standards (IFRS) Reporting
The SEC is considering measures that could lead to retiring US GAAP and adopting IFRS in the US. The effects of global reporting standards on US companies will accelerate over the next few years, regardless of how the SEC proceeds.
Starting in January 2012 it will be necessary to present an IFRS compliant balance sheet.
In view of the above, requirements are coming up from many Companies for the SAP FICO Consultants with IFRS reporting exposure. So the given below information which I have gathered from various recourses will help the SAP FICO Consultants during their interview process.

But in the present client environment, those who are in SAP EEC 6.0 with New GL might have a Leading Ledger with US GAAP reporting and linked with Depreciation area 01 & Asset valuation area 0, as IFRS reporting is

• Two-year dual-reporting periods will be 2012 and 2013 for most customers.
• IFRS-only reporting will be required in 2014.
Beginning in 2011, configure additional non-leading ledgers and additional asset valuation areas:
During this configuration step, both the leading ledger and new non-leading ledger must have the same fiscal-year date settings, and also
• 0L – Leading ledger set to report the local GAAP
• Depreciation area 01 – Asset valuation area 01 (link to the LL)
• Z1 – Non Leading Ledger (NL) set to report IFRS
• Depreciation area 02 – Tied to NL Z1 and reporting IFRS
• Depreciation area 12 – Set to record the delta between the local GAAP and IFRS total; this depreciation area is also tied to NL Z1

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