IFRS COMPLIANCE IMPLEMENTATION WITH JD EDWARDS - Wipro

IFRS COMPLIANCE IMPLEMENTATION WITH JD EDWARDS
IFRS COMPLIANCE
IMPLEMENTATION WITH
JD EDWARDS
Standardizing Accounting with Global
Practices Across the Enterprise
What are International Financial Reporting Standards?
International Financial Reporting Standards (IFRS) is a single set of high quality, understandable, enforceable and globally accepted financial reporting
standards followed in the US. IFRS helps achieve a common and uniform method of accounting of transactions for an enterprise which would be
practiced globally.
Areas Where IFRS Gives an Edge
*
over Other GAAPs
• Event and the related treatment of accounting of transactions in
sub-ledgers
• Recording and treatment of accounting entries in general ledger
• Specific and addendum disclosure requirements
• Security compliance and control
Challenges in Using IFRS
Independently
Organizations that use IFRS independently can face a few challenges
which can eat up a significant portion of their resources. Here are
some of the issues:
Parallel reporting
• Multi-GAAP accounting during the transition phase for every
record of transactions
• All data should be held in a single database
Complex disclosure requirements
• Segmental reporting and disclosures
• Income statement and balance sheet
• Other specific disclosures required by the standards
Configuring the modules to meet the specific standards
• Changes in the treatment of accounting for sub ledgers
Reporting and consolidation
• Accurate and effective management reporting
• Global reporting and analysis
• Multi dimensionality in reporting
Automated internal control system
• Replace manual controls
• Optimize operational efficiency
• Meet the compliance mandated within timelines
• Complete audit trails
* GAAP
Generally accepted accounting principle

How JD Edwards Supports IFRS
If you are encountering any of these issues, it is time to implement JD
Edwards, which can support IFRS in three ways.
1. Ledger Approach
GAAP
GAAP
Adjustment
Ledger
2. Company Approach
GAAP
GAAP
Adjustment
Ledger
Common
AA Ledger
ABC
Company
3. Chart of Account Approach
Multi-GAAP
Ledger
IFRS
Adjustment
Ledger
Account Category Code
• GP - GAAP Account
• IS - IFRS Account
IFRS
IFRS
Adjustment
Company
IFRS
Understanding Wipro’s JD
Edwards-IFRS Methodology
Together, JD Edwards and IFRS work at different stages to provide
organizations an edge. Here are the different levels in the
methodology and some of their functions:
For more information, please contact us at info@wipro.com
Plan: Identify impact on consolidation process; individual financial
statement components; configuration for GL and sub-ledgers; and IFRS
conversion schedule
Analyse: Identify and map IFRS Chart of Accounts to existing Chart of
Accounts (Fit-Gap); parallel accounting; comparing GAAP and IFRS
standards; and identify differences
Design: Update Chart of Accounts; create setups; design & develop
IFRS financial reports; and configure general ledger system & sub ledger
Implementation: Build and execute test cases and scripts; conduct
end-user workshop; user acceptance testing; IFRS and GAAP report
testing
Transition: Support for first time IFRS opening balance sheet;
retroactive accounting - assets and liabilities; and testing daily
transactions in accordance with IFRS in JDE System
Key Offerings of IFRS Compliance
Implementation
Here are some of the key offerings you can benefit from, with IFRS
compliance implementation:
• Multi-ledger reporting
• Deferred taxes – FS presentation
• Depreciation – long lived assets
• Inventory valuation
• Revaluation – long lived assets
• Costing methods - inventory
• Asset componentization – long lived assets
• R&D expenses – intangible assets
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