Filling out the tables: our know-how

All of us are used to Excel, where a cell contains a number or a formula. And you cannot enter number, where formula is, as such formula will disappear. We were absolutely dissatisfied with this in relation to filling out complex related tables, which is IFRS reporting.

For example, you fill out Statement of Financial Position (Balance Sheet), enter data to PPE assets line item. Plus there are notes to reporting (PPE section), where the same fixed assets indicator is broken down by groups and flows. I.e. you enter PPE amount in the Balance Sheet, and in notes table you break down such amount in detail by line items (flow) and columns (PPE groups). As a result, first you enter the total amount in the Balance sheet, and then you enter its components in the notes. It is impossible to do so in Excel, as you will erase the formula. In Excel you would first have to start with entering notes, breaking down PPE by groups and flows. In our IFRT software you can enter data in any order, also by starting with Total. Here is how it works.

The program implements an adaptive total items computation mechanism. It means that the software computes amount until the formula meets equation. When equation is disturbed (for example, because you enter value directly to Total cell), re-computation ceases until user reinstates the equation.

Let us see example. We have the following table:

Indicator Value
Property, plant, and equipment (PPE) 5
Others non-current assets 10
Total non-current assets 15

We start changing data in the table, let us have the value for PPE being "7". Immediately as we enter 7 instead of 5, Total item is automatically re-computed:

Indicator Value
Property, plant, and equipment (PPE) 7
Others non-current assets 10
Total non-current assets 17

Total item was computed automatically, as when new value for PPE was entered Total was actually equal to the sum of two line items. Now let us enter 20 instead of 17 to Total item:

Indicator Value
Property, plant, and equipment (PPE) 7
Others non-current assets 10
Total non-current assets 20

As Total is no longer equal to the sum of line items comprising it (you have "broken" the formula) the software highlighted the Total cell red, and the lines that comprise it - pink. So you can enter any data in any cells, but if you "break" the formula, the software will alert you with the red light.

And now, while the formula remains "broken", Total will remain "20" (i.e. just as you entered it), regardless of your changes to the values of PPE and Others Non-current Assets line items. For instance, you enter number 8 instead of 7 in PPE line item and you see that nothing changes:

Indicator Value
Property, plant, and equipment (PPE) 8
Others non-current assets 10
Total non-current assets 20

If the cell turns red or yellow, and you cannot understand what the discrepancy is, right click the cell and select "Show by formulas" - a table will appear, showing the discrepancy occurred.

In order to remedy the situation, you need to "fix" the formula. It can be done in two ways:
a) to balance Total by changing the value of one of line items it is comprised of (for instance, by entering 10 instead of 8 to the "PPE");
or
b) to enter accurate total amount (i.e. 18 instead of 20).

After that the red color will disappear from the table and Total item will start being re-computed automatically, when any changes are made to the two above line items.

Such unique approach enables to fill out multiple indicators in any order in IFRS reporting and notes, many of which are interconnected.

Another related issue you need to pay attention to: one and the same indicator always has one and the same meaning, regardless of how many times it is used in the tables. It means that if you change Total PPE line item in PPE section of reporting notes, PPE value will automatically change in Statement of Financial Position. And vice versa. It has logic, as one and the same indicator may not have various values in different tables.


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