IFRS and Oracle E-Business Suite

IFRS-Specific Features

There are a number of areas where specific functionality was developed to support IFRS requirements. For example:

• Impairment of Assets: Accelerated method of depreciation for physical assets or asset write-off for non-tangible assets and impairment worksheet.
• Asset Componentization: Parent/Child assets with migration process (Web ADI Worksheet).

Dual GAAP Reporting

Dual or multiple GAAP financial reporting will be required during the comparative reporting period of the IFRS transition. Depending on the complexity of the change from GAAP compliance to IFRS compliance, the differences can be managed in a variety ways. For example:

• Minimal to Low Impact: For some customers, IFRS will have a minimal to low impact. These customers will configure their subsystems to generate the appropriate data and will use existing General Ledger features (e.g., balancing segment or sub accounts) to distinguish between IFRS and GAAP.
• Medium Impact: For many customers, IFRS will impact several areas. For these customers, a solution involving ledgers and adjusting ledgers in a Ledger Set will be more appropriate. Adjusting ledgers accommodate many accounting differences and will provide a reconciliation view.
• High Impact: For some customers, the adoption of IFRS impact will be significant. These customers would choose to use completely separate ledgers, one for GAAP and one for IFRS. Distinct ledgers based on the same transaction data provide a superb vehicle for creating completely different "CPA" level accounting and reporting.

IFRS Migration Path

After the comparative period, given the options for dual GAAP reporting, customers will have an appropriate path to get to IFRS only reporting. Considerations at the point of migration include the business response to IFRS and the evolution of the regulatory environment.