Playing with IFRS reporting: red, yellow, white
Our motto is to make complex things simple. IFRS statements are a rather vast document comprised of multiple tables. At the same time, many tables are interrelated, the indicators in the key reporting forms are broken down in notes. It is not an easy task to fill out all the tables manually, without software assistance and not to permit any formal discrepancies. That is why we have equipped our International Financial Reporting Tool (IFRT) with automatic control of indicators consistency and the accuracy of Total line item values. The software warns user by highlighting cells if there are some discrepancies: red - error, yellow - breakdown is required.
What does it mean - red cell, error? For instance, in the Balance Sheet you enter 100 in Inventories line item, and in the notes to inventories you break down the total amount by inventories groups so that their values total 98. There is inconsistency! Cell turns red, and the components of cell sum turn pink.
What does a yellow cell mean? It means warning. For example, you have already entered 100 in the Balance Sheet in Inventories line item, but haven't yet filled out the notes, where this amount needs to be broken down by inventories groups. The software sees it and by highlighting the cell yellow, it shows that this indicator must be broken down somewhere in the tables.
How can one understand, why the cell turns red or yellow and what is the problem? Right click on the cell and select "Show by formulas" from the menu. Table will be displayed showing the formulas, where discrepancy appeared and in which amount.
Often, if you point the cursor to red cell, small red box with a certain number will appear next to it - the number is the discrepancy amount which causes inconsistency in Total item. For convenience, we made it possible to drag&drop this box to required cell, thus balancing the total amount. Such box is shown by the software each time, when there is discrepancy in one formula only. If there are several discrepancies that occurred in several formulas, the software doesn’t know which discrepancy is incorrect and it will not advise you on a certain number. Choose "Show by formulas" and look for errors.
Basically, the aim of playing with reporting tables is to avoid the appearance of red and yellow cells after reporting is filled out. It means that reporting is formally filled out accurately and with no discrepancies. Certainly, it is not the guarantee for the essential accuracy of your reporting, however, it precludes technical errors.
The software displays alerts to the table of contents so that you don't have to check each reporting section for red and yellow cells. Opposite to reporting sections, there are red circles and green triangles with exclamation point. They mean that this section has "troubled" cells.