Capitalisation of assets in local ledger but not in IFRS

Financials (FI, CO, TR, EC)

Moderators: Snowy, thx4allthefish, Baz, darkduck

Post Reply
dersimli
Posts: 3
Joined: Tue Apr 13, 2010 9:49 am

Capitalisation of assets in local ledger but not in IFRS

Post by dersimli » Tue Apr 13, 2010 9:53 am

Hi,

I have got a client in France who holds Fixed Assets only in the local ledger. In the IFRS ledger it is not held. How can FA be capitalised only in local ledger, but not in IFRS? SAP ECC 6.0

Thank you in advance for the replies.

darkduck
Posts: 2469
Joined: Thu Aug 25, 2005 3:55 pm
Location: whereami?
Contact:

Re: Capitalisation of assets in local ledger but not in IFRS

Post by darkduck » Wed Apr 14, 2010 12:56 am

You can specify separate asset class with separate GL account. Under local rules you assign this class to assets, under IFRS - to WIP (AuC).
When asset is ready to be capitalized in both, you move asset value from asset in one asset class to asset in another.

Will it help?
SAP FI FAQ: http://en.sap.darkduck.com

Just before submitting any question, have a look at http://www.catb.org/~esr/faqs/smart-questions.html please...

dersimli
Posts: 3
Joined: Tue Apr 13, 2010 9:49 am

Re: Capitalisation of assets in local ledger but not in IFRS

Post by dersimli » Thu Apr 22, 2010 3:12 am

Thanks darkduck for the reply!

We do use the ledger based solution. I think what you are referring to is the account based solution. So this won't help!

rje
Posts: 36
Joined: Fri May 27, 2005 7:48 am
Location: Ontario

Re: Capitalisation of assets in local ledger but not in IFRS

Post by rje » Thu Apr 22, 2010 6:09 am

I assume the cost will be expense in the IFRS ledger? If so, you require 2 depreciation areas - one for local, one for IFRS. On acquisition of the asset (for example transaction ABZO), edit "line items" and enter a value of zero in the IFRS depreciation area. The acquisition transaction will post the "local" asset value to both ledgers but when you process transaction ASKB it will move the cost in the IFRS ledger from the asset balance sheet account to expense (as long as you have done all the correct configuration ). Asset is now capitalized in the local ledger and expense in IFRS.

If you capitalize through investment measures (orders, WBS) you can use "capitalization keys" to direct the costs to the appropriate depreciation area.

Post Reply