Behind SAP’s Internal IFRS Project

  • by Davin Wilfrid, Former Contributing Editor, SAP Experts
  • September 24, 2009
Management
Like most global businesses with subsidiaries in dozens of countries, SAP’s reporting requirements are daunting. The looming switch to IFRS in the US has complicated things even further, requiring SAP to implement a parallel accounting structure to account for both US GAAP and IFRS reporting rules. See how the company was able to manage this complex project successfully, and how it plans to build on IFRS for the future.
With 180 subsidiaries dispersed throughout the globe, SAP has the same accounting and reporting challenges as any other multinational corporation. With the US Securities and Exchange Commission (SEC) pushing for a transition from US Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS), SAP began to overhaul its accounting procedures in 2003.

In a recent Webinar, Christiane Ohlgart, IFRS project lead for SAP, offered a behind-the-scenes look at how SAP established a parallel reporting scenario in which the company relies on US GAAP as its primary reporting guideline but is capable of reporting under IFRS to satisfy international guidelines. The project has helped ease the transition to IFRS, which SAP expects to rely on as its primary reporting guideline in 2010. The Webinar was sponsored by SAP EcoHub.

Davin Wilfrid

Davin Wilfrid was a writer and editor for SAPinsider and SAP Experts. He contributed case studies and research projects aimed at helping the SAP ecosystem get the most out of their existing technology investments.

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