Discover Flexible Financial Reporting with Dynamics GP 2010

Financial Reporting

Microsoft Dynamics GP 2010® offers a seamless way to comply with U.S. Generally Accepted Accounting Principles (GAAP) while making the adjustments necessary to prepare financial reporting that is compliant with International Financial Reporting Standards (IFRS) – and report in both modes. This solution uses three separate reporting ledgers–BASE, IFRS and LOCAL–to simplify the reporting process.

New Features Allow for Easier Compliance

More multinational companies with U.S. operations now have an immediate need to comply with IFRS. Last year we saw Canada join the European Union in adopting IFRS, and it is likely that U.S. GAAP will be forsaken for IFRS over time. To provide flexibility in meeting the different financial standards, Microsoft Dynamics GP 2010 offers three separate reporting ledgers:

BASE (would be the U.S. GAAP ledger)
LOCAL (important if you observe non-GAAP-non-IFRS local accounting rules)

No More Messy Work-Around

Before Dynamics GP 2010, there was no good way to follow U.S. GAAP and then make separately reportable adjustments to present financial information compliant with IFRS. At one point, Microsoft had posted a solution from a partner that was nothing more than a clumsy work-around: create a second GP company to shadow the first, make IFRS adjustments in the second company, and finally, create FRx reports to consolidate the two.

My immediate reaction was: work-around = pain + agony + suffering = errors = trouble

Strangely, anyone who has used Dynamics GP knows that this math DOES add up.

How the IFRS Features Work in GP 2010

With Dynamics GP 2010, the solution is elegant in its simplicity. Regular transactions such as Sales, Purchasing, Payroll, Inventory and Financial will all post to the BASE Ledger. Closing entries to adjust the BASE ledger to IFRS standards will be made in the IFRS ledger. From here, FRx can prepare a financial report without consolidating reporting trees or clumsy backups, and restores to a separate database.

Flexible financial reporting is just one of the great features of Dynamics GP 2010. Compliance is no joke, and you can rely on Dynamics GP to keep you where you need to be.

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