IFRS exhange rate differenced and Ax

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Posted on by AnnGrev

Hello,

My customer says that paragraph IAS 21 forces them to post exhange rate differences for large financial propety into specific accounts in the P&L. This is becuase they need to put them ina specific place in their financial statement. Having 4 accounts in the Ledger set up isn't enough for them, they say, according to IAS 21.

Anyone that has handled this without modification?

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guk1964 10,888 on at

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its difficult to comment without knowing a lot more about the scale of the operations, and where those are .e.g is there financial consolidation.?

There is also the need to consider other standard even IAS1, and certainly IAS 16 and maybe IAS 12 re income taxes, and IAS 39 re P&L treatment etc.

as minimum you have to separate Unrealised from Realised and for each of those the Gains from the Losses so that means at least 4 accounts so I agree with your customer.

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Ludwig Reinhard Microsoft Employee on at

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Hi AnnGrev,

in the currency revaluation accounts form you are able to specify unrealized and realized Profit/loss accounts per currency.

Have you tried making use of this functionality?

Can you find out some additional information on why your customer wants to have more accounts for posting exchange rate differences and for what purpose?

When should those exchange rate difference accounts be used; i.e. what is the trigger you have in mind?

Best regards,

Ludwig

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AnnGrev on at

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Hello,

According to IFRS it is not per currency that should present the exchange rate differences, it is per balance sheet account (main account)

So putting it per currency would not help.

We need to be able to specify for some main account other unrealized/realized accounts than the once set up in the ledger. Thos in the ledger can be used for AR and AP and normal bank accounts.

But according to IFRS, some types of assets, and the differences that fluctuations in exhange rate causes, should be presneted in the P&L in special accounts.

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AnnGrev on at

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Yes, we are now thinking of taking this to Microsoft. I think it i simportant to know how Dyanmcis Ax can support IFRS in this matter.

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Ludwig Reinhard Microsoft Employee on at

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Hi AnnGrev,

There is some Basic Information available here:

mbs.microsoft.com/.../MSDAXIFRSIASB (requires Login to partnersource)

Yet, there is not much (nothing) stated about the functionality you are looking for.

Would be great if you could get into contact with MS and keep us updated here.

Many thanks and best regards,

Ludwig

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AnnGrev on at

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This has been added as an idea to the ideaportal now.

Please vote at ideas.dynamics.com/.../ID0001825

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