Transitioning to IFRS in SAP ERP Financials

0. Preface This chapter will outline the global Financial Accounting settings related to country codes, currency type, and the integration of these two settings with other SAP compo-nents and subcomponents.

0.1. Transition to IFRS

0.2. Using SAP Functionality to Assist Transition

0.3. Intended Audience and Skill Prerequisites

0.4. How this Book is Organized

1. Introduction to IFRS This chapter will give an overview of the International Financial Reporting Standards and what the conversion to those standards from US GAAP means for companies.

1.1. Introduction

1.2. Adoption of IFRS by Country

1.3. Current Situation

1.4. Summary

2. IFRS and US GAAP This chapter will cover the deltas between IFRS and US Generally Accepted Accounting Principles (US GAAP) from an organizational and company code level.

2.1. Introduction

2.2. Differences Between IFRS and US GAAP

2.2.1. Assets

2.2.2. Liabilities

2.2.3. Revenue Recognition

2.2.4. Expense Recognition

2.2.5. Consolidation

2.2.6. Derivatives and Hedging

2.3. Summary

3. IFRS and SAP ERP Financials This chapter will detail the functionality available in SAP ERP Financials as it maps to the IFRS and US GAAP deltas.

3.1. Introduction

3.2. Upgrade to SAP ERP

3.3. Migrating to SAP General Ledger

3.3.1. Parallel Ledgers

3.3.2. Document Splitting

3.3.3. Segment Reporting

3.4. Parallel Reporting

3.5. Consolidations

3.6. XBRL

3.7. Impact of IFRS on other SAP Components

3.8. Summary

4. IFRS Conversion Project This chapter will cover the roadmap, timing, and project phases for a typical IFRS con-version project.

4.1. Introduction

4.2. IFRS Timelines for US

4.2.1. Comparative Period

4.2.2. IFRS Period

4.3. IFRS Roadmap

4.4. IFRS Project Phases

4.5. IFRS Challenges

4.6. Summary

5. Case Study This chapter will provide a complete IFRS transition case study involving a large petrochemical

Paul Theobald, CFO of CAPE Consulting, Inc. has worked with SAP since 1993. He has been a Financials consultant for 14 years. Paul specializes in Foreign Currency Valuation, the General and Special ledgers, local GAAP reporting, etc. He has worked in two major international SAP Financials projects and has been lead consultant in various projects, focused on GL, Accounts Receivable and Payable, and Banking, Fixed Assets and the Special Ledger. A qualified chartered accountant (should get from the UK, Paul has lived and worked in the US for 12 years making him uniquely qualified to understand the problems that arise in large, global implementations.