+1
Hello,
For a company that provides consultancy services, Bookkeep is going to be done according to Ifrs as well. The items are fixed asset and depreciation, provisions (severance pay and annual leave), IFRS 6 — Exploration for and Evaluation of Mineral Resources. Normally the company follows accounting bookkeeping accourding to Turkish GAAP. Please kindly advice. How can do it.
Best Regards.
Best answer by Adam Bereda
View originalIn general, there are multiple possibilities to manage two GAAP (IFRS and local) parallelly in IFS.
One of possibilities is to use Internal Ledger, and use one GAAP in IL and the other in IL.
Another one is to create dedicated set of IFRS adjustment accounts, where we can book in parallel IFRS-specific entries (like IFRS FA depreciation).
Decision depends on how many differences we might have between these two GAAP and if we expect reporting time differences (IL solution allows us to have IL open while GL is closed, so e.g. we can do report in local GAAP - GL and keep doing IFRS adjustments in IL).
You have another thread you might be interested:
+1
In general, there are multiple possibilities to manage two GAAP (IFRS and local) parallelly in IFS.
One of possibilities is to use Internal Ledger, and use one GAAP in IL and the other in IL.
Another one is to create dedicated set of IFRS adjustment accounts, where we can book in parallel IFRS-specific entries (like IFRS FA depreciation).
Decision depends on how many differences we might have between these two GAAP and if we expect reporting time differences (IL solution allows us to have IL open while GL is closed, so e.g. we can do report in local GAAP - GL and keep doing IFRS adjustments in IL).
Hello Adam,
First of all thank you for received, for second option how can i arrange ifrs account seperately gaap accounts and close, when booking ifrs.
many thanks.
Best Regards,
Hi,
Using single ledger (GL) assuming your GL is following local GAAP, you should create dedicated set of accounts (let’s say Statistical for IFRS costs/revenues and Statictical with Opening balances for IFRS assets and liabilities).
Then you can book e.g. provisions (severance pay and annual leave) using manual journals on these dedicated accounts.
In Fixed asstes, you can created separate IFRS book and calculatre IFRS depreciation, posting it to dedicated IFRS accounts (using FAP5 and FAP6 posting types)
and so on...
In balance sheet and profit and loss for local GAAP statistical accounts should not be presented, but you should incude them in IFRS reports (excluding corresponding accounts for local GAAP).
I hope you can understand the idea now.
+1
Hi dear,
many thanks,
Regards.
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