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Central GAAP versus Local Gaap
br@mc
Member Posts: 16
Hi there,
We have a situation where a corp policy imposes a single chart of account (COA) to its legal entities. All good. Now besides the layout of the COA, there is the policy or 'how you post'. People will post according to local statutory requirements (local gaap).
Now for group reporting, local gaap is not always correct. As an example, if a customer has not paid within 240 days, corp mandates it is taken out of revenue. However, local statutory wise, this needs to stay in revenue.
Today this is managed in a seperate set of books (usgaap book) in which these corrections are posted. Local gaap and usgaap are then added to come to the corp results.
Now, this is perceived as a work around and they would like to post both local gaap and usgaap in one and the same company. Struggling to think how this could ever work. You create a dimension or seperate accounts, but this could lead to all kinds of issues I fear.
Thoughts?
Much appreciated!
We have a situation where a corp policy imposes a single chart of account (COA) to its legal entities. All good. Now besides the layout of the COA, there is the policy or 'how you post'. People will post according to local statutory requirements (local gaap).
Now for group reporting, local gaap is not always correct. As an example, if a customer has not paid within 240 days, corp mandates it is taken out of revenue. However, local statutory wise, this needs to stay in revenue.
Today this is managed in a seperate set of books (usgaap book) in which these corrections are posted. Local gaap and usgaap are then added to come to the corp results.
Now, this is perceived as a work around and they would like to post both local gaap and usgaap in one and the same company. Struggling to think how this could ever work. You create a dimension or seperate accounts, but this could lead to all kinds of issues I fear.
Thoughts?
Much appreciated!
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