More on Oracle's ERP solutions and IFRS
By Tony Ouk on Aug 06, 2009
I ran into Seamus Moran (Oracle’s local IFRS expert) the other day. Seamus had recently read our last blog post and wanted to expand on one of the points. In our last blog post, we wrote, “All of our (ERP) solutions can be and are being used by companies reporting to their shareholders using the IFRS principles today.” After reading that, Seamus thought of a great example to illustrate that point.
Consider how management might deploy Oracle’s ERP solutions to comply with IAS 21, which is converged with FAS 52, and defines how organizations convert from the different currencies of their operations to their stock market reporting currency. If organizations have a “corporate control” approach to that, they might decide to convert trial balances in Hyperion Financial Management. However, if organizations need to consider lots of local data, they might do it in General Ledger using GL features. An organization that needs to see local detail in home currency might use our Reporting Currency feature to convert GL detail, as opposed to balances, or even all of the transactions in certain foreign operations. Organizations can select to do either current rate translation, required in banking and other industries, or historic rate re-measurement, required in manufacturing and exporting.
Again, this shows that Oracle’s ERP solutions are very flexible because they were designed to meet the needs of many industries and geographies. However, we again emphasize that organizations should work with their accounting compliance advisor (e.g. Deloitte, PricewaterhouseCoopers, KPMG, etc.), to ensure that they configure their systems to be in compliance with IFRS. To learn more about this and other topics related to IFRS, visit Oracle’s website dedicated specifically to IFRS.