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Indian and US GAAP

Former Member
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Hello

My client raised a query for which i need your help

the query is we have got our compnay in India and if we want to show

our Balance Sheet to US company we need to show Balance sheet in US-GAAP

How to go about this can anyone suggest me any solution please.

Thanks in advance .

Nitin

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hi,

Good evening and greetings,

As per the Accounting Practice, it would be a single Financial Statement Version which would have US GAAP Account - Elimination Postings Account = Indian GAAP (Local GAAP Account) Value...When US would see your balance sheet the financial statement version would give only the US GAAP GL accounts and when reporting it in India, it would account the elimination postings and would gie the Indian GAAP value.

Please reward points if found useful

Thanking you

With kindest regards

Ramesh Padmanabhan

Former Member
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Many companies define a "Special Ledger" (under FI-SL functionality) which allows:

1) Different Fiscal Year Variant (India is typically Apr-Mar, US is Jan-Dec)

2) Different treatments on various accounting practices, like Depreciation postings (by direct postings in SPL)

3) Different Reporting for India GAAP (US GAAP follows straight data from FI-GL or EC-PCA, India GAAP follows data from SPL)

Hope this helps.

Former Member
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Hi,

FI reporting in US GAAP can be handled by defining a Financial Statement Version or using the standard FSV. However, you might need to set up/organise your company codes, have parallel accounts to record transactions as per US GAAP. One idea is - say you have a Company Code in Indian GAAP, you create another company code for US GAAP and pass/make adjustments entries in the company code defined for US GAAP where ever there is difference between the two GAAP's. If you want to report in Indian GAAP use only the CCode defined for Indian GAAP and if you want to report in US GAAP, club both the company codes and report. This provides flexibility.

Rgds.