Appropriation of RE in Cons Area....

[Former Member]

Hi,

Appropriation of Retained Earnings selection in Consolidation area, In ideal scenario which one need to select.

How selction of Balnce sheet differ from Income statement.

Regards

Naveen.KV

[dan_sullivan · Accepted solution]

For US Generally Accepted Accounting Principals (GAAP) it must be balance sheet (retained earnings).

However "correct" answer depends on the accounting principals for which the system is being configured for the most part. In many cases, the source data may be based on US GAAP and the final consolidated results may be on a different say International (IFRS) GAAP. In this case adjustments are typically made in BCS to accomplish the requirements of IFRS. IN some other cases the situation may be reversed.