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Best practice processing GAAP adjustments (Statutory audit adjustments) in SAP

Jun 28, 2017 at 06:56 PM

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Former Member

Hi All,

Recently I have come across with a scenario where we have to process local GAAP adjustments (proposed by the statutory audit team) in SAP where the adjustments create significant variances in management reporting i.e under France GAAP Unrealised foreign currency gain and loss are not allowed as expenses and have to be deferred. These does not make sense when we have to do consolidate management reporting.

If I process all the statutory adjustments in period 15 and reversed back in period 16 so that the TB from period 1 to 15 is align with statutory report, however the statutory adjustments would reflect in carry forward balances (Retained Earnings).

Is there any solution to this dilemma? i would prefer to process the statutory adjustments in SAP so every year the retained earnings will remain same as the stats and it does not effect the management reporting.

Thanks in advance.

Best Regards,

VP

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