Reporting only during deployment of Consolidated Financial Reports is the most common option selected by companies. Only summary transactions are created, frequently in spreadsheets. For companies just starting with IFRS, this is an easy method with which to begin. Companies with less complex requirements may continue with this level of reporting during their two-year transition period.
Because most companies considering IFRS will eventually switch from GAAP to IFRS, the initial concern is the difference between the two methods which must be reported for two years. While the Consolidated Financial Report Level is in use, the company may be deploying a more permanent solution capable of continuing to report by IFRS.
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 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 level of reporting may also be enabled by use of external worksheets.
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By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.