IFRS Accounting with Microsoft Dynamics GP®: Where Do You Start?

Due to the volume of responses and question we’ve been receiving on our IFRS series, we’d like to step back and start with an enhanced version that answers many of your questions.

The first step in analyzing your software systems is to determine the source of transactions and at what point you want to be able to diverge reporting between GAAP and IFRS.  Consider a system diagram: 

Three layers are considered for determining where you want to start to diverge

IFRS from GAAP:

1. Consolidated Financial Report level
2. General Ledger level
3. Sub-ledger transaction level

Selection of the level where you want to differentiate GAAP from IFRS determines the methods from which you choose to deploy IFRS.  The levels are enabled by the various methods.

Available Methods of Deploying IFRS within Microsoft Dynamics® GP

1. Duplicating your database then adding adjusting entries in the new database
2. Adding a parallel set of accounts representing the new ledger to your existing chart of accounts, providing for segment differentiation for the divergent standards.  This method increases the number of accounts in your general ledger.
3. Adding an Analytical Accounting dimension to your existing ledger accounts. This method doesn’t increase the number of accounts in your general ledger, but does add another dimension that must interface with your financial report writer, FRx or Management Reporter.
4. Classifying transactions by ledger within your existing chart of accounts—in Microsoft Dynamics® GP, a method in addition to adding a dimension.  This method could be termed to add an attribute to each transaction.
5. A hybrid approach combining two of the other methods.

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Over the next few blogs we’ll examine various methods and levels combined, starting with IFRS Accounting: Consolidated Financial Report Level.

©2011, Computeration^®, Inc.

Coming soon…our free IFRS white paper. Reserve your copy of  “If IFRS is on Your Horizon, What are Your Choices?” now.

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By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.

Computeration specializes in ways to enhance your company’s solutions with Microsoft Dynamics GP in Idaho, Oregon, and Southwest Washington, with clients around the world, Computeration makes your implementation successful by offering experienced project management, data integration, training, and consulting services.

IFRS Accounting with Microsoft Dynamics GP®: Where Do You Start? is a post from: ERP Software Blog

Related Posts

1. IFRS in Dynamics GP – Can You Do It?
2. IFRS Accounting with Microsoft Dynamics® GP: General Ledger Level
3. IFRS Accounting – Where Do You Start?