Translation

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To translate information about balances, turnovers, and correspondence (depending on the model) from the NAS chart of accounts to the IFRS chart of accounts, use the Translation document. In the document header, specify the company and the period for data translation. To specify translation frequency, go to IFRS accounting – IFRS settings – Translation and transformation. After you select a company and a period, the Translation template attribute will be automatically filled in accordance with your accounting policies. To define the information transfer rules, map NAS accounts (hereinafter referred to as Source) and IFRS accounts (hereinafter referred to as Destination) in the template. If the template describes data translation from an external infobase, fill the External infobase attribute on the Additional attributes panel. After you fill the required attributes, click Fill in document to fill the document automatically.

Translation template

To view the list of translation templates, go to IFRS accounting – IFRS settings – Translation and transformation. The translation template has the following key attributes: Translation direction, Source chart of accounts, and Destination chart of accounts. Other attributes required for data transfer depend on the translation direction:

• Trial balance indicators – Trial balance indicators (transformation model). Report type indicator values with the Balance and turnovers by accounts purpose generated from the NAS and IFRS charts of accounts are transferred. It is necessary to specify report types for both source and destination charts of accounts.
• Accounting register – Trial balance indicators (transformation model). Report type indicators of the IFRS trial balance are filled based on NAS accounting register data. It is necessary to specify a report type for destination and a register resource for source.
• Accounting register – Accounting register (transactional model). Entries under NAS chart of accounts are transformed into entries under IFRS chart of accounts. After you select the charts of accounts, a table of correspondence between the source and destination register resources is generated automatically. The table can be manually edited. Then, go to a setting for filling destination register dimensions and specify filling rules: based on the source register dimensions or fixed values.

The source chart of accounts can be stored either in the current or in an external infobase. In the second case, the accounting register translation procedure directly selects data from the external infobase specified in the Translation document.

Once you fill the main template attributes, click Mapping settings to map source and destination accounts. Drag or right-click an item to specify correspondence for it. Next, you may optionally set up the account translation rules.

• Check boxes in the DrCr column indicate whether the rule is applied to debit or credit turnovers of the source account. By default, both check boxes are selected.
• Corr. account (out.). If this cell is filled, the rule is applied only to the specified source correspondence. Only for translation of accounting register data.
• Check boxes in the Balance and Turnovers columns indicate whether balance and/or turnover indicators of a trial balance report type need to be transferred. Only for translation of indicator values.
• Double-click the More column to open a form for the detailed data transfer rule setup. There, you can specify additional settings for getting data from the source and filling the destination fields. If these settings exist, they are displayed in this column.

The mapped accounts of the source chart of accounts are displayed in grey. Click the buttons to select the mapped or unmapped accounts. If you select a source account, the first active mapping setting is selected. You can both consolidate data from several sources into a single destination and separate data from a single source into several destinations. In the latter case, you need to set up data filters in order to avoid data duplication during translation. To validate the mapping settings for a selected source account, click Filter by source on the destination account panel. This selects all destination accounts mapped to the source and displays active filters in the More column.

Parallel accounting of specific transactions

Some object kinds can be accounted for under IFRS separately from NAS. Accounting data for these objects translated from NAS may not be translated in IFRS accounting.

These accounting object kinds include:

• Non-current assets
• Deferred expenses
• Financial instruments
• Reserves
• Deferred taxes

In the Fixed assets, Intangible assets, and Assets under construction catalogs, you can set the Accounting option radio button to Parallel accounting or Translation for each object or a group of objects. If you set this radio button to Parallel accounting, entries where a parallel accounting object is a dimension will not be translated. The amount of these transactions is displayed in the NCA column of parallel accounting in the Translation reconciliation report.

In the Product range and Deferred expenses catalogs, you can set the Accounting option radio button to Parallel accounting or Translation for each object or a group of objects. If you set this radio button to Parallel accounting, it does not affect translation of entries where a dimension is a parallel accounting object.

If you set the radio button to Parallel accounting, you can reclassify objects of these catalogs into NCA objects. To do it, post the Reclass of NCA from expenses and inventory items document, which will be filled automatically.

Once the translation is completed, enter IFRS documents for NCA objects that are recorded in parallel. For fixed assets, enter information for parallel accounting using the Enter NCA events document.

To set the parallel accounting option for one group of fixed assets (provided that data is translated for other categories), set the Parallel accounting parameter in the settings of the “Facilities” fixed asset group and the cards of the relevant fixed asset objects.

You can use the Enter NCA events document to enter data for the "Facilities" group (data from the appraiser's report). Upon period-end closing in IFRS, depreciation is accumulated for the “Facilities” group. Depreciation data is not translated from NAS. In case of disposal or receipt of objects of the “Facilities” group in NAS, this data is also not translated into IFRS. You can automatically fill in documents of parallel accounting of IFRS based on this data. For example, in the Enter NCA events document, click Fill in from accounting system to transfer NAS data to the IFRS document. Users can adjust this data.

For parallel accounting areas, there is a separate procedure for entering data in IFRS not related to translation. You can enter this data either based on existing NAS data by filling in parallel accounting documents from the NAS accounting system or from external sources not related to the accounting system (for example, from the appraiser's report).

Period-end closing is another IFRS parallel accounting tool. Period-end closing involves the following operations: revaluation of financial instruments, closing operations of parallel accounting of fixed assets (adjustment of the financial result of disposal of fixed assets and accumulation of depreciation of fixed assets), calculation of deferred taxes and cost adjustment in IFRS, and so on.

Some transactions can be performed “on a selective basis”. That is, they are not required for period-end closing and their execution depends on company's accounting specifics.

You can read about the mentioned accounting object kinds and period-end closing procedures later in this chapter.

Entry translation reconciliation

To validate correspondence translation, use the Entry translation reconciliation report. To open the report, go to the IFRS accounting panel or the Translation document form or list. The report compares the NAS and IFRS account records for a selected company and period. Several reconciliation options are available in the report. To select one option, go to the Settings panel:

• By correspondence. Account correspondence amounts are compared.
• By turnovers. Debit and credit turnovers of each account are compared.

Non-translated turnovers by IFRS parallel accounting objects are displayed in a separate column.

To display data translation rules for each account pair in the report, select the Display mapping settings check box. To reduce the amount of displayed data, select the Display only errors check box.

The report supports retranslation of the selected data. The Retranslation tab contains a list of correspondences for NAS accounts that have records for the selected company and a period. To perform retranslation, manually or automatically select correspondences and click Translate.

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