Transformation and consolidation of financial statements under IFRS

Navicon IFRS supports the following transformation rules:

• Data transfer at the general ledger level
• Posting transformation rules support the mapping in terms of:
  • Source account (primary accounting account)
  • Type of transaction (debit/credit)
  • Corresponding account
  • Analytical section up to 3 any analytics
  • The aforementioned combination is brought to correspondence with the IFRS account. Besides, the analytical section can be brought to correspondence with up to 3 receiver analytics. For example, it may help when you need to add the analytics which are absent in the local accounting but can be uniquely defined for IFRS purposes in the mapping settings.
• Transformation of assets, including parallel accounting (transformation of transaction facts). Each standard asset transaction gets a corresponding rule of accounting at the consolidated level.
• Transformation of analytics. The source analytics value code can be brought to correspondence with the receiver analytics value code. This tool is needed to standardize the analytics at the consolidated level.
• During the transformation, the system maintains the log file which registers the operation errors and provides the details.
• It's possible to prevent certain types of transactions from being transformed. For instance, one could exclude repricing or closing transactions from transformation into IFRS standard.
• During the transformation, the currency is converted to the local currency of the receiver company.
• At IFRS level, links to the source transactions are saved for auditing purposes, so that the amounts are kept in original currencies as well.
• Possibility to reassess transactions at IFRS level
• Disclosure of main reporting forms with a built-in report designer

Consolidation Monitor is the tool that provides real-time tracking of the transformation process at various levels (importing from primary accounting systems, data mapping, accounting of transactions in IFRS terms). Should any of the stages require human assistance the system will signal this.

Correction Calculation Monitor is the tool that provides the calculation and trial accounting of the selected set of corrections, as well as the automatic generation of decoding reports based on the accounting results. There is a possibility to rollback previously recorded corrections as well as to generate decoding reports based on the recorded corrections.

If necessary, the solution users can do the following:

• Set new legal entities in case of the foundation/acquirement of a new one
• Change the transformation rules (mapping of the chart of accounts, analytics mapping, transactions excluded from transformation)
• Add new accounts to the IFRS chart of accounts
• Set new statements, add/remove items within the existing statements
• Change the perimeters of consolidation
• Configure intra-group search rules