Using ADempiere, Open Source ERP, to Support IFRS and GAAP

"Because of our interactions with various government departments, we have reporting requirements to comply with existing and upcoming IFRS standards. We may also need to report against multiple standards. Any known issues in that arena?"

I believe option #2 deserves a more in-depth discussion. If you were to create a GL Journal to update your books to reclass values, you should provide the control report that defends some or all the amounts. ADempiere has a feature that allows you to attach any document to any record. This ability means you can support each GL Journal Line with its own control document. Having processes and results that are self-documenting is a love story. Anyone with the right access can go into any standards GL Journal and defend the reporting standard’s results.

Here is an Example

Let’s discuss a $60B computer manufacturer near Austin, TX as an example of using reversing GL Journals to report via multiple standards. As I understand their situation, the following bullets describe the period close and reporting process:

• They have over 100 subsidiaries or entities.
• Each entity maintains its books in US GAAP regardless of where they are located.
• Each entity closes its books (in US GAAP) and submits the results for consolidation with the other subsidiaries.
• After consolidation, corporate creates its financial reports and statutory filings.
• Once consolidation results are submitted, each entity can then create reversing GL journals to report and file within local standards and regulations.

The biggest benefit to this structure is simplicity. Global accounting education is simplified. Consolidation mappings and efforts are simplified. Regional reporting expertise is maintained by regional domain and audit experts.

I hope this helps!

More Information

• Using Open Source ERP with Multiple Companies to produce consolidated financials.
• Here is an more indepth review of ADempiere’s ability to support wholesale and web distribution.
• If you are new to open source ERP, here is a quick guide to help you choose the right ERP. As a worst case scenario, evaluating open source ERP helps you save on commercial license fees.
• If you are new to ADempiere, here is a video tutorial to help learn to navigate.
• If you want to dig deep in to how product accounting works in Tier 1 ERP, here is a video tutorial that should make product accounting easier to understand.
• If you want to know how much you can save by using open source ERP, here is an open source ERP ROI discussion.

Please note that iDempiere is a fork from ADempiere. iDempiere has the same abilities mentioned above.