International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) were created by the International Accounting Standards Board to promote internationally comparable financial statements. Regulation 2002/3626 requires approximately 7,000 listed companies in the European Union to prepare their consolidated financial statements in accordance with IFRS/IAS.

That has far-reaching implications for companies of all sizes. Publicly traded companies need to adhere to IFRS while maintaining compliance with local tax, dividend, and other regulations – requiring at least two sets of financial statements. And because capital markets demand consistent financial reports for investment decisions, even nonlisted companies are required to issue IFRS-compliant financial statements.

SAP ERP Financials provides comprehensive functionality for parallel accounting that supports both IFRS and local regulations around the world. So you can adhere to the complex accounting standards of the multiple countries in which your company conducts business, meet the reporting requirements of the capital markets, and ensure the reliability and transparency of your financial reporting.

With SAP ERP Financials, you can take a structured approach to ensure efficient and effective conversion to IFRS. You can accommodate the differences between IFRS and local generally accepted accounting principles (GAAP). And you can address specific issues such as financial instruments, business combinations, and share-based payments. So you have a comprehensive solution to IFRS compliance.