The balance sheet reporting must meet numerous valuation requirements:
USGAAP / IFRS / Local GAAP
Those who do not have “ledger accounting”, such as that offered by SAP, usually develop their own solutions for this outside of the normal accounting systems, e.g. Excel. Here, a lot of time is spent on reconciling the figures, checking formulas and eliminating input errors. One plausibility check follows the other, usually at the expense of time that would be better spent on clarifying valuation methods or other, technically exciting questions.
The account solution for consolidation described below provides a very efficient method of meeting reporting requirements in a timely manner.
It enables balance sheet valuation differences to be posted immediately after clarification in the individual financial statements. The balance sheet reporting is thus always up to date. Reconciliation work with ancillary systems is no longer necessary; the documentation can be found and documented at any time via the posting documents.
The principle can be applied to any group accounting system. Integration into the consolidation according to the different balance sheet rules is thus conceivably simple.
As is well known, the annual financial statement begins on the first day of each business year. If you follow this basic rule consistently, you will achieve a very high quality already in the monthly interim financial statements and considerably reduce the time-consuming work on the annual financial statements.
The booking of the monthly accruals or the formation of the intra-year provisions is carried out exclusively by the financial accounting department, of course in close cooperation with the controlling department, i.e. the bookings are made in the accounting department and not in the downstream controlling system.
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