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US GAAP FOR ALL ENTITIES

Jan 17, 2017 at 08:31 AM

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Former Member

Hi All,

One of the client wants the accounting principle to be US GAAP for all entities irrespective of the place of operations/ registration of the entities.

If we use US GAAP for all entities what will be the pros and cons?

example: If A entity is registered in India and operating India we want to use US GAAP as accounting principle for that entity.

same is applicable for all entities in other countries also.

Is this possible in BYD ?

Is this recommended?

Thanks & Regards,

Afzar

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1 Answer

Otfried von Geisau
Jan 26, 2017 at 08:12 AM
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Hi Afzar,

the usual approach in situations like yours is to have - at least - two set of books per country:

  • One "local" set of books with a "local" accounting principle in order to fulfil legal requirements in that very country and
  • One "reporting" set of books which allows you report cross-company.
  • In some cases depending on the company's special needs, additional set of books.

Please be aware that you must decide on this question very early in the implementation. You are currently not able to introduce new set of books for an existing company once you have done the first postings in that company.

Should you run into this situation this requires a reimplementation.

Best regards
Otfried

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