I am in the process of designing the Finance Solution at one of the Leading construction companies (constructing structures for oil exploration). The primary requirements and some preliminary design thoughts are as follows:
- Group reporting under IFRS (group consisting of about 100 Legal entities- company codes)
- Fiscal year is December to November
- Operating chart of accounts - IFRS
- Leading Ledger in the New GL is for IFRS accounting and reporting
- For all the companies the group Fiscal year is proposed to be December to November
- One Controlling area for the group - all legal entities assigned to the same controlling area
- Non-Leading ledger for complying with Country specific requirements. There are situations that some of the countries in the group have different fiscal year for local reporting
- On the Fixed Assets- Each country will have country specific chart of depreciation and invariably it is intended that Book 01 will be IFRS rules and will be integrated and post to the Leading ledger
- Other Books (Depreciation areas) will be for the local statutory and tax requirements.
Questions for Brazil country version
- I have been told that for Brazil the Fiscal year will be Calendar year and the Brazilian Localisation tables looks at the Fiscal Year that is assigned to the company code and not the fiscal year that is assigned for the company code to the Non-leading ledger--- Is this true?? That means I have problems with Fiscal year and also Controlling area
- Understand the best practice for Fixed Assets is that Book 01 for Brazil has to be for Local requirements (CIAP) and cannot be IFRS---- Is this true??
Any documentation on a similar design or help in this area for the Brazil implementation will be of great help to me.