Adjustments to reported financial data v/s Standardizing Entry

[Former Member]

Hello Experts,

Can you please explain what is the difference between Adjustments to reported financial data and Standardizing entries?

Kindly provide example.

Regards,

UR

[Former Member]

CLOSING

[dan_sullivan]

One point in addition to Eugene's is that Adjusting entries (posting level 01) when carried forward become merged with the posting level 00 records. I try to avoid this as the audit trail is not clear after carry forward.

[Former Member]

Hi UR,

In my understanding, adjustments - are just corrections of some data due to mistakes made or data incompleteness.

Standardizing is making entries in order to, for example, calculate IFRS set of data from local GAAP data.

Or from fiscal accounting to financial accounting (different rates of amortization for fixed assets for those types of reporting). -- every reporting period you have to make some correcting entries.

And so on. Actually, the problem is much more deeper. I mentioned just the simpliest cases. -- Standardizing data from fiscal point of view to management one might require much more complicated activities.