How to setup different Restatements with Extension Versions

[daniel_grber]

From SEM-BCS we are used to have Restatements in the main version but separated with a different Restatement ID. These Restatement IDs have a Restatement Period which limits the usage of it. Thus it will be used only for one purpose e.g. “IFRS X Changes for Years 2021/22”. In the following year we would create a new Restatement ID for “IFRS Y Changes for Years 2022/23”.

Now in Group Reporting we would use Extension Version (Manual Run) for Restatements. Questions:

1. In theory one Restatement (Extension) Version for all my Restatements in all years would be sufficient, right? I could always carryforward this extension version to the main version.
2. But, as the field “Restatement ID” is no longer available, is there any way to distinguish my Restatements in Reporting? Could theoretically be done with a Custom Field, but would then need to be filled in all postings. Or would the “Best Practice” approach rather be to create new Extension Versions each year for every new restatement? This would blow up the number of versions quite a bit over time.

[cfaustm3]

I've had requirements in the past (pre-GR) to track the "when" and "why" for a restatement and went the custom/dedicated field route. Depending on how granular the reporting requirements are, this might still might be preferrable to the restatement extension versions. I haven't had a chance to play around with that new functionality in a GR system yet, but especially in cases where you have a restatement that spans multiple prior years, I'm not sure a single, catch-all restatement version that carries forward the "base" version would be sufficiently flexible for that scenario. The requirements in this case were more management reporting focused, and happened usually once a quarter, primarily to get comparatives to report consistent with the current quarter.

-Chris

[daniel_grber]

Hi Arleigh,

yes I am referring to that feature. And it is quite common that we have a Restatement every year. There have also been years when we had more than one in a year. Thus, we want to separate them somehow. If we would create new Extension Versions every year, yes we could separate them in Reporting, but it would not be really end user friendly as the User would always need to know which is the latest Restatement Versions he needs to consider.

Daniel

[Arleigh]

Hi Daniel,

I'm assuming your referring to Extension Versions in S/4HANA 2022 which were enhanced with this version.

My Understanding is the following:

In 2022 you need to do a restatement. So you create a Manual Extension version and of course link it to the main / Reference version and signify this extension version will do a BCF at the end of 2022 into the Reference Version.

Then you do the adjustments needed for the Restatement in the Extension version. When you close out the year the Balance sheet entries will be carried forward into the Reference version in 2023.

For the year 2022 you can get reports with or without the Restatement entries by choosing the correct Version.

You could do this every year but do you really need to run Restatements every year??

Another option that might work for you is to create a specific Document Type for Restatement top side entries. Then you can filter the Reports to include or exclude the restatement Document Type. BUT if you do this does the calculation of Net Income posted to RE from the restatement include that document type?? If it doesn't then this workaround probably won't work.

Good luck!