The General Ledger Level of deployment implies transactional-based entries and greater complexity. It may be regarded as a step towards full deployment of IFRS. The basic premise implies that a transaction originates in the subsidiary modules and when its distribution is passed through to the General Ledger, the distribution is modified in some manner via a method to double post the transaction; a transaction based on GAAP and a second transaction based on IFRS.
An alternative of this level is to post the transaction once based on GAAP and, if IFRS requires a deviation from GAAP, to post the deviation.
The General Ledger Level may be deployed by using any one of the five available methods: a
- If a company chooses to make their IFRS entries as the difference between GAAP and IFRS, they must develop one process.
- If a company chooses to make their IFRS entries as a replacement to their GAAP entries, that is another process.
- And the company must decide how long they will be using the process—two years while they transition to IFRS or year over year in order to meet multiple international standards.
We have created customizations that make a copy of all general ledger entries from one database and post them to a duplicate database general ledger. Duplicating general ledger entries can also be accomplished by using GP’s SmartList to export the transactions to Excel. Integration Manager can be utilized to import them to the duplicated database.
The same type of customization can be adapted to duplicate transactions, before or after posting, so the journal entry can be adapted then posted to a new chart of accounts in the same database.
AA (Analytical Accounting) attributes can be attached to distributions at the General Ledger level or module level. The AA attribute can be your signal that a distribution requires attention for either GAAP or IFRS.
The new functionality in Microsoft Dynamics® GP 2010 for attributing a transaction to a Ledger is used solely at the General Ledger level. While on the surface this functionality is useful, the user must still create the duplicate or additional general ledger journal entry.
A hybrid approach may be necessary.
In the next blog we’ll begin a 3-part examination of IFRS Accounting: Sub-ledger Transaction Level and the 5 Available Methods of Deployment.
©2011, Computeration®, Inc.
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By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.