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BroadPoint Technologies, LLC

Financial Reporting Standards Compliance with Microsoft Dynamics GP 2010


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With the release of Microsoft Dynamics GP 2010, many organizations are finding new ways to improve their business operations.  One of these ways is the ability to prepare standard reports to comply with US GAAP guidelines and make the adjustments necessary to prepare financial reporting compliant with International Financial Reporting Standards (IFRS).  The newly released Microsoft Dynamics GP version uses three separate reporting ledgers - BASE, IFRS and LOCAL - to simplify the reporting process.

As more and more US-based companies operate abroad and have to adopt IFRS standard reporting, the need has increased for multiple standards reporting. To provide the flexibility that accounting departments need, Microsoft Dynamics GP 2010 offers three separate reporting ledgers including:

  • BASE (commonly used as the US GAAP ledger)
  • IFRS
  • LOCAL (for organizations that apply non-GAAP-non-IFRS local accounting rules)

Eliminate Work- arounds for IFRS Reporting

Before the release of Dynamics GP 2010, manual adjustments were required to present financial information compliant with IFRS.  The recommended solution was a challenging work-around:  create a second GP company to shadow the first, make IFRS adjustments in the second company and, finally, create FRx reports to consolidate the two.

My immediate reaction is…

                WORK-AROUND = PAIN + AGONY + SUFFERING = ERRORS = TROUBLE

We can prove this mathematically…and we have all felt the pain.

IFRS in Dynamics GP 2010

With Dynamics GP 2010, the solution is simple and easy. Regular transactions – Sales, Purchasing, Payroll, Inventory, Financial  – post to the BASE Ledger. The IFRS ledger is adjusted with closing entries and then FRx financial reports can be used to create the reports.

There is an outstanding determination being made for a patch to FRx that would segregate reporting among the ledgers.  Until that patch is released, you should consider segregating IFRS accounts to a unique GL Account segment so that the adjustments can be isolated or separated.

To learn more about Microsoft Dynamics GP 2010 and IFRS reporting, download the Microsoft Dynamics GP and IFRS White Paper and contact Steve Kane (301-634-2404 andskane@broadpoint.net) at BroadPoint Technologies, Virginia’s most experienced Dynamics GP Microsoft Partner.

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