Transformational adjustments

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Use this document to update information about balances and turnovers for the IFRS chart of accounts. Depending on the model currently in use, select a method for recording the document data. To do this, go to the Additional attributes panel.

If you use the transformational model, select the Indicator value adjustments method. This method records table entries as pairs of indicator adjustments for a trial balance report type specified in the Report type for balance and turnovers attribute in the IFRS chart of accounts. Indicators of debit turnover and closing balance related to the entry debit account are changed for each entry. Indicators of credit turnover and closing balance related to the credit account are also changed.

If you use the transactional model, select the Accounting register records adjustment method. This method creates the IFRS accounting register records based on the document table rows. There are multiple ways to create and fill the document:

• Manually, without templates. Manually fill header attributes and the Detailed entries table. After you fill the Company and Period attributes, most header attributes are filled automatically in accordance with the active accounting policy.
• Manually, with template. After you select a template, the Detailed entries table is automatically populated with account correspondences defined in the template. You can enter entry amounts manually or click Fill in document to calculate the entry amounts using the rules defined in the template.
• Automatically when posting documents that have an additional entry generation template.
• Automatically when posting IFRS documents that create transformational adjustments.

Documents that create transformational adjustments include:

• Posting of previous period adjustments
• Period closing operation by financial instruments
• Closing operation by NCA
• Calculation of deferred taxes
• Revaluation of currency assets and liabilities
• Inventory provisions
• Allowances for expected credit losses of accounts receivable and advance payment
• IFRS cost adjustment
• Cost calculation
• Profit (loss) calculation
• Nominal account reclassification
• Accruals
• Consolidation adjustments
• Elimination
• Intercompany transaction discrepancy settlement

If the Transformational adjustment document is generated from another document, its header displays a reference to the source document.

Transformational adjustment templates

To view the Transformational adjustment templates catalog, go to the IFRS accounting – IFRS settings – Translation and transformation panel. The catalog stores settings for filling and processing the Transformational adjustment document. When creating a new template, first enter its name and select a chart of account; then, specify its purpose. The further procedure depends on the purpose you specify.

• Transformational adjustments. Select this option for manual or automated generation of summary entries when closing the report preparation period. If you select this option, specify the list of required entries and (optionally) formulas for automated calculation of adjustment values.
• Generation of entries when posting a primary document. If you select this option, specify a document kind whose posting requires generation and filling of a Transformational adjustment document based on this template. Besides generation of entries and calculation of formulas, this option allows to quickly set up the entry generation process based on the data and records of the source document.

The entry resource calculation formulas are always editable, regardless of the template purpose. After you set up the entry account correspondences, double-click the Procedure field to open the editor of the entry resource calculation formula. It is similar to the report indicator calculation formula editor. Specify one or several data source in the upper table to have their codes added to the formula text. Data sources from both the current and external infobases are allowed. To use data sources from an external infobase, go to the template form, open the processing rule, and specify the infobase type.

When creating a simple entry template based on the primary document data, specify the following:

• Entry correspondence.
• Data source for populating entry fields.
  • □ Document header attributes.
  • □ Document tables. Header attributes are available in the Reference field.
  • □ Sets of accounting register, accumulation register, and information register records, for which the document is a recorder. Document header attributes are available in the Recorder field.
• Rules for populating entry fields and resources based on the source data.
• Additional filters (if required).

Data available to fill entry fields is displayed on the left side of the form. Required fields are displayed on the right. The setup is similar to filling operand fields when you set up formulas for calculating report indicators. You can either select the source field from the available ones and dereference it if needed, or specify a fixed value to fill extra dimensions, dimensions, or entry attributes. If you need to use additional filters for source data, specify them on the corresponding tab.

To manage templates for generating additional IFRS register records when posting documents, use the Set up document entry generation form (IFRS accounting — IFRS settings). The left panel displays documents, for which transaction templates are configured. The right panel displays templates configured for the selected document. Documents, for which transaction templates are already configured, are marked.

You can temporarily disable either the entire transaction template or each of its entries to increase the system performance when you are not planning to use the configured template currently for various reasons. You can do it either from the form described above or right from the transaction template form.

For each template of transactions generated upon posting source documents, on the Filter of primary documents for generating entries tab, you can specify the limits of its use depending on the document header attributes or their derivatives. For example, for frequently used documents such as cash flow or inventory documents, various templates can be configured. These templates will be used when posting a particular document based on its transaction type, contract details, currency, and so on.

Accruals document

Usage

In accordance with IFRS, recording income and expenses does not depend on the receipt or registration of primary accounting documentation in the reporting period. For example, if a company has been provided with rental services or electricity, recognize the corresponding expenses in IFRS accounting, regardless of whether the primary accounting documents were received from the lessee or the electricity supplier before the reporting period end closing date.

Under NAS, unlike IFRS, income and expenses are recognized only if there are primary documents that confirm the transaction.

Accrual recording frequency

Income and expense accrual transactions are recorded as of the last day of the reporting period (month).

Determining accrual amount

Income/expense accrual amount is estimated for the purpose of IFRS accounting. Its value is calculated depending on the cost evaluation terms defined in the corresponding customer (supplier) contract.

The exact income/expense amount is determined after receiving the primary accounting documents from the customer or supplier.

Reversing accruals

An income/expense transaction reversal is recorded as of the date of registration of primary accounting documents on actual income/expense by comparing the accrual transaction and actual amount.

To create an accrual reversal, it is recommended that you drag a row from the primary accounting document on actual income/expense to the income/expense accrual document.

A reversing entry amount can be calculated automatically as the smallest amount out of accrual and actual amounts. If necessary, you can enter it manually.

Accrual registration procedure

1. To register an income/expense accrual under IFRS, create the Accruals document. In this document, specify the transaction name, the counterparty, and the contract, and manually enter the entry for the accrual of expenses that are not confirmed by source documents at the end of the reporting period.

Analytical accounting for accrual registration

IFRS accounting of income/expense accruals based on the Accruals document requires the following data:

• □ Transaction name
• □ Counterparty
• □ Contract
• □ Account debit and corresponding extra dimensions
• □ Account credit and corresponding extra dimensions
• □ Income item
• □ Expense item
• □ Transaction amount
• □ Scenario
  1. During the next reporting period, a primary accounting document for this counterparty is recorded in NAS. The document includes the amount of actual income/expenses incurred under the counterparty contract (or approved by the counterparty) or otherwise related to the counterparty (for example, fines or penalties).

To ensure correct translation of a NAS business transaction to IFRS accounting, set up the account mapping in the Translation templates catalog.

The amount listed in the original received document is not required to be exactly equal to the accrued amount in IFRS; it can be greater or less.

When posting the document, the Transformational adjustment (for transformational accounting model) or IFRS transaction (for transactional accounting model) document is generated. A reversing entry of accrued expense dated with the reversal period date is also generated.

1. To analyze and map transactions accrued under IFRS, and record them under NAS, use the Plan vs. Actual matching of IFRS transactions data processor.

For the specified scenario, period and company, IFRS accrual documents and their corresponding actual NAS documents are displayed. To match Plan vs. Actual values by accruals, find a transaction record corresponding to the IFRS accrual in NAS documents and transfer it to the Actual documents mapped to the current accrual table. You can edit the matching amount.

Income/expense accrual reversing entries are generated based on comparing the Accruals document and the actual accrual documents.

1. To monitor the remaining accruals and undelivered documents, use the Plan vs. Actual matching of IFRS transactions data processor.

The list of IFRS income/expense accruals that have no primary accounting documents recorded in NAS is displayed in the Accruals document window. The list contains the following information:

• Document reference
• Counterparty name
• □ Contract
• Accrual amount

To display the list of remaining accruals in Microsoft Excel format, click More – Display list.

The Planned-actual matching of IFRS transactions data processor has the following windows: Accrual documents, Documents fact, and Actual documents mapped to the current accrual.

The Accrual documents window of the specified period and company shows created and posted IFRS accrual documents. Once you map the accrual document in the data processor, the Amount actual column displays the mapped amount of the NAS document.

The Actual documents window shows references to NAS documents, in which the next reporting period records transactions accrued under IFRS in the previous period.

The Actual documents mapped to the current accrual window maps actual documents to accrual documents. To do this, select the document to map in the Accrual document window, and then drag the reference from the Actual documents window to the Actual documents mapped to the current accrual window. If the mapping is successful, the mapped fact document will be displayed in the Actual documents mapped to the current accrual window and the Amount actual and Adjustment columns will be filled in the current accrual document in the Accrual documents window.

To match planned and actual values by accruals, find in NAS documents the transaction record corresponding to the IFRS accrual and transfer it to the Documents mapped to accruals table. You can edit the matching amount.

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