International Financial Reporting Tool FAQ
About the Software
- — Does the software only work over the Internet or can it be installed on a computer?
The software is delivered as a service (SaaS). It cannot be installed on a local computer, but can be used from anywhere in the world via the Internet.
- — Is there a guarantee that my information will not be accessed by third parties?
Unfortunately, in a world where the Pentagon's servers are hacked and world leaders' cell phones are tapped, no one can provide such guarantees. We use standard means of protection: data is transferred through protected SSL protocol, backups are kept, etc. Of course, this is only a relative security. On the other hand, our servers don't store your credit card details, lists of your company's clients or the list of bank transactions. Our servers only store financial statements, i.e. the documents that are initially prepared for an external user. From this point of view, the confidentiality risks with our service are significantly lower than, for example, with online accounting or bookkeeping services.
- — Why does reporting include a particular indicator? Who requires its disclosure in reporting?
The software includes only those indicators that are required to be disclosed under IFRS. We have reconciled this based on the IFRS Taxonomy. To check this, you can open the information ("About item" in the context menu of the cell) that contains a reference to the standard clause that requires disclosure of such indicators.
- — The software contains very detailed IFRS statements; is it necessary to fill in all the tables?
In fact, the IFRS disclosures are quite extensive. At the same time, we have included only those indicators that the standards require to be disclosed. But that doesn't mean you have to fill in all the tables. You won't have certain specific sections (for example, related to biological assets or mining). Many tables contain descriptions of assets and transactions that you should not have (for example, hedging instruments). Start by completing the key statements and then follow the information available in your accounting records. Do not pay attention to the tables and line items that you do not want to fill in: the software will hide them when generating the report.
- — When I enter the data, why do some cells turn yellow and others turn red?
The software highlights cells in yellow and red to draw your attention to some problems with the consistency of the indicators. Yellow means warning. It means that somewhere in the report there is a breakdown of the key figure you entered, but you haven't entered the data there yet. Red color means error: somewhere in other tables there is the same key figure, but the sum of the items that make it up gives a different value. Or you have entered the total first, and then the components of that total, but they do not add up to the required total. In this case, the software may display a small red box next to the cell with a note about the difference value.
To understand what is wrong with the indicator, in which formula an inconsistency is found, right-click the cell and select "Show by formulas".
For more information about red and yellow cells, click here.
- — Why does the system sometimes automatically calculate the total in the "Total..." row when the rows that make up the total are filled in, and sometimes not?
This is our special adaptive approach to filling out report line items, which also allows the user to enter values into cells that are calculated based on formulas (i.e., "Total" cells). The rule is simple: "Total" is automatically recalculated if the equation for this formula is satisfied when data is entered. If it is not satisfied (the cell is red), automatic recalculation will not start until you adjust the formula (by changing the values of the cells that make up Total, or by changing the Total value directly). For more details about this mechanism, see this article.
- — Why is it helpful to make adjustments?
It can happen that the report is ready, but it is necessary to adjust it by including certain previously unrecorded transactions. In order to make this easier and to avoid disturbing the bottom line by entering figures in a certain cell, we have introduced the mechanism of adjustment entries. When you make an adjustment entry, you specify the debit and credit, similar to accounting, and our software posts the data to the tables, taking into account all the interrelationships. You will not be able to disturb the bottom line and the relationships between individual forms by making adjustment entries, even if you want to.
- — I cannot make an adjustment entry, some debit/credit items are missing (e.g. "Depreciation of property, plant and equipment"). What should I do?
Basically, the situation where a certain entry cannot be made is impossible. The software implements the Chart of Accounts consisting of the Balance Sheet and the Profit and Loss Statement items, and not some list of items of our own invention. This means that it is possible to record ANY transaction.
Please note that any chart of accounts (in any country) is just a detailed breakdown of two line items from the financial reporting forms: Balance Sheet and P&L. Therefore, in order to make an adjustment entry, you need to think about which line items in the Balance Sheet and P&L will be affected by such an operation. This will make it clear what type of entry is required. For your convenience, we have added special abbreviations for items (financial statement items) to the debit and credit selection lists:
FP - Balance sheet item
PL - profit and loss statement item
CI - other comprehensive income.
For example, it is possible to reduce the cost of sales and increase the inventory by making adjusting entries. The entry will look like this:
Dr FP:Inventories - Cr PL:Cost of sales
It is possible to make a negative reversing entry. However, since all the entries are adjustment entries, it is recommended to use "normal" entries rather than negative entries for simplicity.
- — Why do I have to select various detail values from lists in addition to Debit and Credit when making adjustments?
Our software takes into account hundreds of relationships between reporting indicators. If you enter only Debit and Credit, such changes will only affect the main reporting forms. However, there are many notes that must be affected by the adjustment. If they are not specified, the relationships between the reporting indicators will be disturbed. That is why the software asks for all the details necessary for accurate recording of your entries in statements and notes. For the user it is similar to the choice of analytical breakdown in accounting software. Thus, our software will help you to maintain consistency of indicators in all forms of reporting!
Most WantedIFRS Terms
- Cost of Sales
- Shareholders Equity
- Statement of Comprehensive Income
- Finance Costs
- Deferred Tax Assets (Deferred Tax Liabilities)
- Intercompany Eliminations
- Distribution Costs
- Earnings per Share (EPS)
- Inventories: International Accounting Standard (IAS) 2 Overview
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