IFRS accounting policies

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IFRS accounting policies for a company are governed by the "Accounting policy" parameter. It can be set up, for example, in a company card.

To enable the history of applying accounting policies in companies, select the Use versioning of IFRS accounting policies check box in the IFRS settings.

By applying different accounting policies for different scenarios or periods of a company, you can:

Manage multiple report sets. For example, you can choose to keep management reporting for one scenario and IFRS for another.
Change accounting policies over time. For example, during the last annual period, the company data was obtained from an external infobase, and since the next annual period, the company data will be obtained from the current infobase. Or, subaccounts and extra dimensions may change in the chart of accounts; this requires a new translation template.
Manage multiple functional currencies. For example, you can choose to apply different functional currencies to IFRS and management accounting.
Make changes to translation template versions. For example, you might want to change the translation rules to reflect recent changes to the report item accounting in the source.
Change a translation method. For example, during the last period, the Summary entries by dates method was used. Starting from a new year, the deferred when posting method will be used.
Change profit tax rates or accounting object parameters.

"IFRS accounting policy" document

This document stores the list of accounting policies. It is useful for aligning different accounting procedures between companies.

The IFRS accounting policy document contains:

Number. Unique ID number of the accounting policy.
Description. Brief description of the purpose of the accounting policy. For example, "Sales", "Production", "Resource extraction industry". This field is optional.
Translation template. The translation (transformation) template that is assigned to the accounting policy. The template specifies the chart of GL accounts and the accounting model for the policy.
IFRS accounting model. The IFRS accounting model depends on the translation template (transactional accounting for the accounting register, or transformational adjustments for report instances).
Source chart of accounts. The source chart of accounts depends on the translation template.
Source currency. The main currency used for the source data. Depends on the translation template. For example, the most common source currency in Russia is Russian ruble received from the "Self-financing" predefined accounting register.
Chart of GL accounts. The chart of accounts (including the related accounting register or analytical TB report type) the company uses to select a current accounting policy.
Accounting currency. The functional currency (the main destination operational currency) used in the accounting policy. If an accounting currency does not match a source currency, the source operation totals will be automatically converted into the accounting currency during the translation step. Further currency rates will be converted in accordance with IFRS regulations (IAS 21) as a separate document.
Additional accounting currency. The report presentation currency that is used as an additional currency together with the main accounting currency. If an additional accounting currency does not match a source currency, the source operation totals will be automatically converted into the accounting currency during the translation step. Further currency rates will be converted in accordance with IFRS regulations (IAS 21) as a separate document.
Translation method. Determines when translation is performed. Translation methods include: Summary entries by dates, By documents (manual start), By documents (scheduled job), By documents (when posting).
Lease recognition threshold. Debts exceeding this threshold (expressed in the accounting currency) are recognized as a finance lease.
NCA materiality threshold. NCA expenses or inventory exceeding this threshold (expressed in the accounting currency) are recognized as material expenses or inventory.
Source for net selling price of inventory. The source of inventory selling price data minus sale expenses, for reserve calculation purposes.
Transformational NCA adjustment mode. Determines how NCA adjustments are reflected in analytical trial balance. Select Reversing entry and full amount to maximize operational details, or select Adjustment for difference to minimize analytical trial balance adjustments.
Rate of deferred corporate profit tax. Applies to calculation of deferred taxes.
Standard accounts. The list of standard accounts from the chart of accounts. For example, you can specify the opening balance account and extra dimensions, financial result account, or other accounts used in IFRS parallel accounting.
Accounting parameter exceptions. Describes exceptions from the main settings of IFRS parallel accounting. Each exception applies to a specific accounting policy. The exceptions are useful when you want to apply a non-default value to an accounting object in a specific accounting policy. The default value is specified in the accounting object and applies to all accounting policies that share the same chart of accounts. To apply a non-default value to a specific policy, create an exception. For example, IFRS and management accounting share the same chart of accounts but they translate to different scenarios. Management accounting does not use NCA parallel accounting or FI. When creating an exception, specify an accounting object (for example, a non-current asset) to display the default value used for the chart of accounts. Then, specify an exception value to apply instead of it. Alternately, you can specify a blank value to disable an accounting parameter. For example, if you specify a blank reference for accounting parameters of a non-current asset, data for this asset will not be filled in the Enter NCA events document.
Creation date. Date when the accounting policy was created. The creation date is filled automatically. It is used for reference purposes and does not affect the effective dates of the accounting policy for any company. Applying an accounting policy to an entity is a separate operation. For example, you can do it in the Accounting policy setting report.
Responsible person. The person responsible for keeping the accounting policy. This field is filled automatically. It is used for reference purposes
Comment. Text comment to the accounting policy. You can fill it with a detailed description of the policy or some specifics of its usage for reference.

"Accounting policy settings" report

The Accounting policy settings report sets up an accounting policy for a company.

The report specifies the accounting policies and scenarios applicable to the company. In the report header, select a policy application date, scenario, and policy fields to analyze.

The report will generate a table of companies (in rows) and scenarios (in columns), where each intersection contains an accounting policy, its commencement date for the corresponding company, and the policy attributes. To harmonize the accounting, specify the same default accounting policy for all companies in a scenario. When you add a company to the perimeter, the default accounting policy applies to it automatically.

If the default accounting policy is specified in the scenario, it is displayed in the header of the scenario column.

In this report, you also can set accounting policies for one or several companies or view the accounting policy change history for a company.

For convenience, the company card contains the latest accounting policies for each scenario and their main attributes. In the company card, you also can edit the accounting policy or view the accounting policy change history.

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