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Hello All,

We are attempting to be IAS 21 compliant,  in regards FX translations.  We have asked IFS consultants and the IFS Customer Success team but cannot get a satisfactory answer,   

Currently in IFS

Closing FX rates are entered into a designated field in IFS on a weekly/monthly basis
In the GL Balance Analysis IFS converts all NZD balances to AUD (parallel currency) at the transaction/voucher dates using the closing FX rates entered into IFS.
This is not aligned with the IAS 21 currency conversions.
 

Required

We should be able to enter Closing FX rates and Average FX rates into IFS on a monthly basis

In line with IAS 21 – we would like IFS to be able to do the FX conversion per below:

All P&L accounts balances in NZD (for the period/ year to date) converted to AUD (parallel currency) using the Average FX rate
All Balance Sheet accounts converted to AUD using the Closing FX rate
Equity, Retained Earnings and balances with Parent Company – historical rate/ manually entered
Resulting FX differences taken to FX reserve
 

Any advice or pointer on how this can be achieved would be much appreciated.

Hello @DW_Sydney,

 

Did you find any solution regarding this topic? 

Would love to hear your opinion / advice on it

 

Thank you
Tanya

Hi Tanya,

We have been told by various IFS specialists that there are two solutions:  

 

  1. Use the Consolidation Module to perform the adjustments
  2. Download the data, in Business Reporter (BR), and make the adjustments in the spreadsheet

We do have the Consolidation Module but due to some of our account codes having internal and external costs mixed in, the Consolidation (understandably) struggles to eliminate the internal balances.  

Short term we will use the BR route and Consolidation Module when we fix the account codes.

Hello @DW_Sydney, 

 

Thank you very much for sharing the solutions 

 

Best regards

Tanya

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