Microsoft Dynamics GP 2010 provides an effective way to comply with U.S. GAAP while making adjustments necessary to prepare financial reporting that is compliant with International Financial Reporting Standards (IFRS) – and report in both modes. The reporting process is simplified through the use of three separate reporting ledgers: BASE, IFRS and LOCAL.
New Features Equals Easier Compliance
More than ever before, multinational companies with U.S. operations have an immediate need to comply with the International Financial Reporting Standards. Last year, Canada joined the European Union in adopting IFRS, and it is likely that U.S. GAAP will be declined for IFRS in the coming years.
- BASE (would be the U.S. GAAP ledger)
- LOCAL (important if you observe non-GAAP-non-IFRS local accounting rules)
Work-arounds: A Thing of the Past
Prior to Dynamics GP 2010 arriving on the scene, there was no easy way to follow U.S. GAAP and then make separately reportable adjustments to present financial information compliant with IFRS. In fact, Microsoft had once posted a solution from a partner that was nothing more than a clumsy work-around in which a second GP company was created to shadow the first. Then IFRS adjustments would be made in the second company, and finally, FRx reports were created to consolidate the two.
In general, work-arounds are not a good long-term solution and anyone who has used Dynamics GP knows how work-arounds can go bad in a hurry. Microsoft Dynamics GP 2010 offers a logical, permanent solution that addresses this challenge head-on.
IFRS Features in Dynamics GP 2010
With Dynamics GP 2010, the solution is elegant in its simplicity. Regular transactions such as Sales, Purchasing, Payroll, Inventory and Financial will all post to the BASE Ledger. Closing entries to adjust the BASE ledger to IFRS standards will be made in the IFRS ledger. From here, FRx can prepare a financial report without consolidating reporting trees or clumsy backups, and restores to a separate database.
Flexible financial reporting is just one of the great features of Dynamics GP 2010. Compliance is no joke, and you can rely on Dynamics GP to keep you where you need to be.
by BroadPoint Technologies,