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STARTER KIT FOR IFRS SP3
Simplified Configuration Description
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2012 SAP BusinessObjects. All rights reserved. SAP BusinessObjects and its logos,
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Contents
Chapter 1
Foreword .................................................................................................................................. 4
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Foreword
Foreword
The starter kit for IFRS is a pre-configuration of SAP Financial Consolidation. It is pre-configured with all
reports, controls and rules for performing, validating and publishing a statutory consolidation in accordance
with IFRS standards.
Adopting IFRS is one of the most fundamental challenges that companies in many countries will have to
deal with over the next few years. The starter kit for IFRS includes dedicated data entry and analysis
reports to help companies manage IFRS adoption.
Data Collection
Data Collection
Data Entry Format
Account Typology
The chart of accounts of the starter kit for IFRS is based on the IFRS Taxonomy. This chart of accounts
enables financial statements to be presented following the requirements of IAS 1:
Assets and liabilities are classified according to the current/non-current distinction.
In the income statement, expenses are classified by function.
This chart of accounts is easy to customize according to the group's requirements.
EXAMPLE:
Subtotal
Account
Code
TA110
A1110
A1111
Data Collection
Summary schedules, used to guide the data entry and control data
Data entry schedules that are grouped into books by type of information: balances, securities and
shareholdings, movement analysis for balance sheet items, intercompany transactions
Data Collection
Package summaries
Breakdown by Flow
Flow entries allow you to identify variations in the balance sheet between the opening and closing balance
and therefore automatically generate the Statement of Cash Flows.
The flows available in the package may be classified into two categories:
Flows for current transactions (purchase, increase in depreciation, fair value, etc.)
Flows for special transactions (changes in accounting policies, internal merger, etc.)
Data Collection
Blocking controls: if these are not valid, the status of the data package cannot be validated. All these
controls must be valid.
Non-blocking controls: these controls are simply warnings and do not prevent the data package from
being validated. (For instance it is possible to enter the number of stocks of investment in subsidiaries
and capital in order to generate automatically the portfolio and the scope. This data entry is optional
and linked to non bloking controls).
Set of Controls
The controls are grouped in the package into sets of controls. Two control sets are configured in the starter
kit for IFRS, one for subsidiaries and joint-ventures and one for equity method companies.
Subsets of Controls
In the package, the controls are grouped together into subsets, where each subset of controls corresponds
to a book of schedules.
Example
Assets equal Equity and Liabilities
Check balances
Flow analysis
Intercompany breakdown
Data Collection
Control Levels
Each control is linked to a level. The level of control to be reached is set by the team at the central site
when the package is generated.
2 levels of control exist in the starter kit for IFRS:
The control levels check from the minimum level (LEV1: submission of Balance Sheet and Income
Statement only) to the maximum level corresponding to a full package (LEV2: complete submission).
When level 1 is required to be reached, only the controls attached to level 1 must be valid.
Consolidation Process
Consolidation Process
Overview of the consolidation process in SAP Financial Consolidation
Consolidation Definition
The settings of a consolidation definition are:
A scope
A variant
A consolidation currency.
The variant parameter is a technical dimension that allows different consolidation settings to be selected
for a given category, a given data period and a given currency:
Four variants are pre-defined in the starter kit for IFRS: IFRS - YTD, IFRS Periodic, Local GAAP YTD
and Local GAAP Periodic. If needed, these variants can be renamed and new variants can be created.
Consolidation Processing
Two processing modes exist: full processing and incremental processing.
During the course of full processing, the software executes the following steps:
Load data: data of the period (package data and manual journal entries) and the opening balance, if
any
The conversion of data entered in foreign currency is carried out as follows (using the closing rate method):
The closing balance of the balance sheet is converted using closing exchange rates, except for net
equity which is recorded using historical exchange rates (calculation and booking of the currency
translation adjustment)
The net income of the period is converted using average exchange rates
Balance sheet movements of the period are converted using the average exchange rates of the period.
Depending on the set of rule selected in the consolidation definition and the type of conversion rate filled in
in the conversion rate table, periodic or year to date conversion will apply.
The configuration handles the following methods of consolidation: full consolidation, proportionate
consolidation and the equity method.
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Consolidation Process
The scope changes handled by the starter kit for IFRS set of rules are:
Acquisitions
Loss of control
Equity transactions
Changes in interest rates of associates and joint-ventures
Internal mergers
Flows generated during the consolidation process allow you to retrieve changes due to currency translation
differences and changes in scope consolidation.
These flows makes it possible to automatically produce the following financial statements:
In addition to standard consolidation rules, a number of technical rules have been configured in order to:
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Analysis Process
Analysis Process
Publishable Financial Statements
The starter kit for IFRS contains a complete set of financial statements which follow the requirements of
IAS1:
Revenue by segment
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Analysis Process
Consolidation Analysis
The pre-configuration contains schedules that enable you to validate each step of the consolidation
process:
Check packages
Check main balances
Check conversion
Intercompany reconciliations
Transition from local to consolidated figures
Net Equity, dividends and goodwills
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Analysis Process
The PACK01 Package data audit ID tracks data that has been entered in the packages
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Analysis Process
With analysis schedules, each line of the Statements of Financial Position and of the income statement can
be detailed by account, reporting unit or audit ID.
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Analysis Process
Each line in the Statement of Other Comprehensive Income, the Statement of Cash Flows and the
Statement of Changes in Equity can be analysed via drill down to analyse which account/flow pairs
generated the amount.
EXAMPLE: Analysis of a Statement of Cash Flows line item (focus on the net cash flows from
financing activites):
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IFRS Adoption
IFRS Adoption
Data Collection
In the starter kit for IFRS, adjustments to IFRS can be entered on dedicated audit IDs directly in package
schedules.
The starter kit for IFRS also provides the ability to post IFRS specific journal entries on dedicated central
audit IDs.
Thanks to audit ID filter restrictions used in the consolidation definition, IFRS adjustments can be taken into
account in the IFRS consolidation process and not in the local GAAP consolidation process.
Financial statements for comparing data consolidated according to local GAAP and IFRS
Balance reconciliation with an analysis by audit ID of differences between local GAAP and IFRS
Analysis schedules for complete audit trail of differences until journal entry number
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EXAMPLE: Analysis of the differences between local GAAP and IFRS for a Statement of profit or
loss line item (detail by account and audit ID)
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