Updated · Originally published
Duplicating your database facilitates consolidated reporting.
Typically, we are concerned with 75% of companies using Microsoft SQL and the other 25% using Oracle SQL or Pervasive SQL. We don’t include “QuickBooks SQL” because QuickBooks is not a real Standard Query Language, and there are a mud-puddle-size pool of public companies using QuickBooks.
Most accounting products today allow for the preparation of consolidated financial statements. Using a merging technique within the financial statement report writer, one common method of preparing both GAAP and IFRS (International Reporting Standards) statements is to first execute your primary type of reporting in one database. Then in a second database with an identical chart of accounts, enter your adjustments to translate the financial reports to the other standard.
This method keeps the complication of divergence out of the sub-ledgers—GAAP and IFRS transactions aren’t accidentally co-mingled within the sub-ledgers. This is generally good and makes this option the most popular method.
For most companies, the primary database will initially be based on GAAP. The second database contains the adjustments to translate the financials to IFRS when the databases are consolidated.
This option also provides the method for financially tracking adjustments from one method to the other—a requirement during the first two years of transition to IFRS.
The FRx and Management Reporter designers use what is called “Tree” technology to consolidate reports. Within the software when a report is first generated, one can report only on the GAAP transactions. The IFRS company, containing adjusting entries, is consolidated with the first company to produce IFRS statements.
Visually the tree is quite simple and appears as follows:
Next blog we’ll answer the question, “IFRS in Dynamics GP - How do You Add a Parallel Set of Accounts with Segment Differentiation?"
Coming soon…our free IFRS white paper. Reserve your copy of now.
.
By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.
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.