IFRS (International Financial Reporting Standards) Compliance

This should be an easy customization / fix

Is there any option on erp next to add Parent account on chart of account because we want to add one parent account which is COST then it will have 6 parent accounts
1,asset 2,liability 3,equity 4,income 5,cost,6, general expense
so we can have net profit report and gross profit report.

IFRS requirements global progress:

131 out of 143 countries use IFRS standards for large companies, with 119 countries requiring IFRS exclusively.

80 out of 143 countries use IFRS standards for small business.

In total, 133 out of 143 countries have committed to IFRS standards.

Source: http://www.ifrs.org/Use-around-the-world/Pages/Analysis-of-the-IFRS-jurisdictional-profiles.aspx

1 Like

Implementing IFRS is not just about having a chart of accounts embedded to the system. ERP Next allows to develop and insert required accounts manually towards the user’s needs.

More important is to implement such macro-level miodules, as assets and depreciations, goodwill accounting, financial instruments, foreign exchange transactions, consolidations. So, my proposal is to keep this thread alive by bringing the specific sugestions on what IFRS items should system have.


Now you can contribute the chart of accounts for your country via Contribute Chart of Accounts for your country

@rmehta @nabinhait Trust you’re doing great. Any update on adding an account numbering system? I just saw a thread where one user seems to have worked out a temporary solution:

Could you consider incorporating this as a stop-gap measure?

Kind regards,

@wale thanks for prompting this issue of the Account number…
I was the one adding the temp solution but since then I have not done any testing or entered any Data as I am still trying to have one Finance guy from Angola to give the Chart we use here and see how can we implement on ERP…
@rmehta If not mistaken if I delete the template created on the Chart some code will fail to work well as they are used a conditions to add or subtract from one document to another … but can we make a scenario like the user selects the type of Chart to use (with account number as first field or without) and of course leaving the existing Roots as guidance for the system.
Is a petty that I am not an accountant otherwise I would already finished the Chart for Angola and the would give you an Idea of the issues that this format could give.

@Helio_Jesus sorry not on top of this. Lets take this up post v7/

Looking for feedback from other users on proposed IFRS-compliant CoA

1 Like

any progress On IFRS issue and multi company consolidation report?

hi everyone,

I have some question regarding IFRS compliance on ERPnext and other question about equity. so here’s the question:

  1. Is ERPnext already IFRS compliance?
  2. How do you make change of equity statement on erpnext? cause it is only have 3 statement (Balance sheet, Loss and profit and cash flow).
  3. How’d you separate equity and account payable (and other account that has different parties) for different parties (ex. account payable report for each parties?

Hello everyone,

ERPNext being on Frappe allows you to customize it and be compliant with any standard. I suggest we create a project to incorporate IFRS requirements.

For example, implementing IFRS 15 which takes effect Jan. 1, 2018, needs to modify Invoicing or client entry, requiring a 5 step model to recognize the Revenue.

Another one on IFRS 16, which requires removal of the account Rent Expense and recognizing your right to a leased asset. ERPNext can be modified to accommodate this, especially if there is a need for PV computations.

Accounts can be reclassified to whatever you want in the system. With the introduction of account numbers, this can be managed even better.


Has anyone found a workaround to the negative bank balance/OD? Best that this be shown as current liability and not negative current asset as liabilities are understated