For FA we use current layer for company's act and tax layer for income tax act since rate of
depreciation varies for both the acts.
Record needs to be duplicated as when calculation income tax for company depreciation as per
income tax is required and based on that data deferred tax liability is calculated.
FA accounting involves certain complex balance sheet requirement so but that transactions are
not required for maintain books.
So, we use tax layer. Even in tax layer transactions, the ledgers get hit and transaction can be
seen like normal transaction. Only difference will be that for tax layer, tax will be checked in
layers section.
Current: use for daily transaction non-FA -> Balance amount is the current layer only
- Operation: use for fixed asset transaction only -> Balance amount is current +
operation
- Tax: use for fixed asset transaction + any adjustment required -> Balance amount is
current + tax
My question is, if I want to use this scheme then how could I get to post fixed asset
acquisition using only operation or tax posting layer.
Because if I use the current posting layer and derived another value model from other
posting layer. The amount for operation and tax posting layer will be double (current +
tax/operation).
While to post fixed asset transaction using standard transaction (vendor invoice, PO, etc).
I must set up the value model which have current posting layer.
GAAP focuses on research and is rule-based, whereas IFRS looks at the overall
patterns and is based on principle.
under GAAP, a company is allowed to use the Last In, First Out (LIFO) method
for inventory estimates. However, under IFRS, the LIFO method for inventory
is not allowed.
The classification of debts under GAAP is split between current liabilities,
where a company expects to settle a debt within 12 months, and noncurrent
liabilities, which are debts that will not be repaid within 12 months. With
IFRS, there is no differentiation made between the classification of liabilities,
as all debts are considered noncurrent on the balance sheet.
Under IFRS, extraordinary or unusual items are included in the income
statement and not segregated. Meanwhile, under GAAP, they are separated
and shown below the net income portion of the income statement.
3. column tree: