IFRS5 journal reclassification and generation data processing
Reclassification journal generation¶
Once activated, IFRS5 data processing is run every time the area data processing is run and generates the IFRS5 reclassification journal automatically: for every IFRS5 event belonging to the process being run, with data compatible with the consolidation scenario being processed and given a sale approval, a reclassification journal is generated by processing the event data.
The journal number is composed as follows:
- For amount categories, IFRS5_Event number_target category of the applied IFRS5 rule_Event filter entity.
- For non-amount categories, IFRS5_Event number_target category of the applied IFRS5 rule_Source journal number.
If custom dimension 2 is managed, and the Process relationship type is by Entity/CustomDimension2, then the journal number is composed as follows:
- For amount categories, IFRS5_Event number_Target category of the applied IFRS5 rule_Event filter entity_CustomDimension2.
- For non-amount categories, IFRS5_Event number_target category of the applied IFRS5 rule_Source journal number.
Two rows are generated in the journal for every amount to reclassify present in the event data table: one row for the write off on the account to reclassify and one row for reallocation to the Target account.
The journal has the following characteristics:
- It is generated in the consolidation currency.
- It is only present on the consolidated amounts of the processed scenario with origin CONS_IFRS5_RECLASSIFICATION and specific generator type “IFRS5 reclassification” and generator code equal to the IFRS5 event code.
- The Advanced options cannot be overridden manually.
The amounts of that journal work according the periodic method, leaving the amount of the first useful date after the sale approval on the variation dedicated to the IFRS5 reclassification.
Therefore, in the first period in which the sale approval date is included, two records are generated in the reclassification journal for every row to reclassify present in the event data: one row for the write off on the account to be reclassified and one row on the target account with amount equal to the amount to be reclassified. For variation accounts, the specific variation/detail type for the IFRS5 event is used.
In periods after the first period that includes the sale approval date, the effect of the first IFRS5 variation is kept separate from the other variation accounts related to the adjustments in subsequent periods.
In the scenario following the scenario in which the sale approval date is included, the IFRS5 reclassification journal is carried forward and the first IFRS5 variation is no longer highlighted. Instead,the variation accounts adjusted in the same scenario are used.
IMPORTANT: for Sale or Revoke Sale approval operations, the IFRS5 reclassification journal is only generated for normal and detail accounts. Variation accounts are not managed.
Example
The event data are detailed below.
Common to all rows:
- Scenario 2013STAT_00
- Period 09
- Entity A00
- Currency EUR
- Dest1 G01
| Account | Dest2 | CTP | Amount | Amount to reclassify | Reclassification reclassification |
|---|---|---|---|---|---|
| 10040 | A2 | A01 | -107258.06 | -107258.06 | 33333 |
| 10040-470 | A2 | A01 | -107258.06 | 25741.94 | 33333-470 |
| 10040-IFRS5_U | A2 | 28000.00 | 33333-IFRS5_E | ||
| 10040-IFRS5_U | A1 | A01 | -133000.00 | 33333-IFRS5_E | |
| 10040-380 | A1 | -28000.00 | 33333-380 | ||
| 50010 | A1 | 13317.00 | 13317.00 | 50999 | |
| 50010-500 | A1 | 12111.00 | 12111.00 | 50999_500 | |
| 50010-510 | A1 | 1206.00 | 1206.00 | 50999_510 |
Journal generated¶
Header: IFRS5_IFRS5 event code_Target category code_Entity “being sold”
The data of the generated journal is detailed below.
Common to all rows:
- Scenario 2013STAT_00
- Period 09
- Entity A00
- Currency EUR
- Dest1 G01
| Account | Dest2 | CTP | Reclassified amount |
|---|---|---|---|
| 10040 | A2 | A01 | 107258.06 |
| 10040-470 | A2 | A01 | -25741.94 |
| 10040-IFRS5_U | A2 | -28000.00 | |
| 10040-IFRS5_U | A1 | A01 | 133000.00 |
| 10040-380 | A1 | 28000.00 | |
| 50010 | A1 | -13317.00 | |
| 50010-500 | A1 | -12111.00 | |
| 50010-510 | A1 | -1206.00 | |
| 33333 | A2 | A01 | -107258.06 |
| 33333-470 | A2 | A01 | 25741.94 |
| 33333-IFRS5_E | A2 | 28000.00 | |
| 33333-IFRS5_E | A1 | A01 | -133000.00 |
| 33333-380 | A1 | -28000.00 | |
| 50999 | A1 | 13317.00 | |
| 50999_500 | A1 | 12111.00 | |
| 50999_510 | A1 | 1206.00 |
IC elimination write off journal generation¶
Since the IFRS5 reclassification data processing only generates a journal on the consolidable amount type and on the consolidation scenario, technically it is not possible to exclude intercompany eliminations based on the original amount type.
If that field is defined, CCH Tagetik generates, on the consolidated amount type, a write off journal for every IC elimination journal generated, linked to the elimination logics of the selected node.
This write off journal has the following characteristics:
- It contains the written off journal number preceded by the prefix: IFRS5_WRITEOFF.
- It uses the same category as the IFRS5 journals.
- It has a specific generator type “IFRS5 reclassification - IC eliminations write off”.
- The generated origin is "CONS_IFRS5_CTP_ELIM_WRITEOFF".
The generated journal writes off every account of the elimination journal on itself (P&L, balance sheet, normal or variation accounts).
An exception is made for the variation dedicated to the initial balance, which is written off in the sale approval scenario on a dedicated variation account set up within a control group with the IC eliminations write off option.
For IC eliminations write off journals, the Enable Carry forward field is defined according to what is indicated in the header of the source IC elimination journal.