Full IFRS Adjustment Processes (Discounting, Reclassification, NRV)
Discounting, NRV, reclassification — all IFRS adjustments in one audit-ready package.
What problem does it solve?
IFRS adjustments (discounting deferred terms to present value, NRV, reclassification) are calculated by hand in spreadsheets and posted one by one; running local and IFRS bases in parallel is hard, and audit gets tougher each period. Errors hit the financial statements directly.
How does the solution work?
The Conforcus full IFRS package automates present-value discounting, reclassification, NRV (net realizable value) and related adjustments inside SAP. It produces local and IFRS bases in parallel with traceable adjustment postings.
What changes in practice?
The package works on the FI general ledger and the parallel ledger structure. Each type of adjustment has its own calculation engine: the discounting engines bring deferred-term sales and purchases, and the related receivables and payables, to present value; the NRV engine compares the net realizable value of inventories with their carrying amount; the reclassification engine reclassifies balances for IFRS presentation. The calculated amounts become automated adjustment postings recorded on the IFRS basis, while the local basis remains unchanged.
At close, the team checks the results produced by the engines instead of calculating in spreadsheets and entering postings one by one. The manual calculation and posting work reserved for IFRS adjustments in the closing calendar disappears. Because each adjustment posting is created traceably, the basis for an amount can be shown to the auditor from the system. Local and IFRS bases are produced in parallel from the same source data, so the difference between them can be explained by the adjustment postings. In multi-company structures the same method is applied in every company, which gives consistency across companies and periods.
Benefits
- Manual IFRS calculation and one-by-one posting end
- Local + IFRS bases produced in parallel and consistently
- Audit-ready, end-to-end traceable adjustment chain
Where it sits in SAP
Integrated with FI GL and parallel ledger (multi-accounting-principle) structures; includes discounting, reclassification and NRV calculation engines with automated adjustment postings. Runs across multi-company, multi-basis setups.
Who it is for: CFO, Finance, Reporting & Audit
Frequently asked questions
Which IFRS adjustments does the package cover?
The package covers present-value discounting of deferred-term transactions, rediscount (reeskont), the NRV (net realizable value) calculation and reclassification adjustments. A separate calculation engine runs for each, and the result becomes an automated adjustment posting. Which adjustments are switched on is decided at the start of implementation according to the company's IFRS reporting needs.
Do the adjustment postings affect the local books, and how does the package relate to the parallel ledger?
The package is integrated with the FI general ledger and the parallel ledger (multiple accounting principle) structure, and produces local and IFRS bases in parallel. Adjustment postings are recorded on the IFRS basis, so the local basis is not affected. The existing ledger structure is assessed at the start of implementation and the design follows from it; the package runs in multi-company, multi-basis setups.
How do we show the auditor the basis for the adjustments?
Because adjustment postings are generated by the calculation engines, every amount rests on a traceable posting and the adjustment chain can be shown end to end. The same method is applied every period, so movements between periods remain explainable. The auditor is given the calculations and postings in the system rather than spreadsheet files.