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IFRS configuration requirements

Note: For step-by-step configuration procedures, see the JP Consolidation Framework documentation — all configuration sections.

Currency conversion — IFRS settings

Account type

RATETYPE setting

IAS 21 rule

P&L / income and expenses

AVG

IAS 21.39(b) — average rate for the period.

Balance sheet accounts

END

IAS 21.39(a) — closing rate at balance sheet date.

Equity (share capital, capital reserves)

HISTAVG

IAS 21.39(c) — historical rate at date of original transaction.

FCTR (OCI plug)

CTR

IAS 21.39(c) — translation difference to OCI.

Currency Conversion Configuration

  1. Enable rule > Select the Advance Currency Conversion rule

  2. Add Override rule in needed

Please refer to below sample of currency conversion rule:

IFRS Advanced Currency Conversion (Downloadable Excel file)

Ownership structure — IFRS settings

Method

IFRS condition

Lineos setting

Full consolidation

Control per IFRS 10 — power + variable returns + ability to affect

Method = Full

Equity method

Significant influence or joint venture (IAS 28)

Method = Equity

Proportional (joint operations only)

Direct rights to assets and obligations for liabilities (IFRS 11)

Method = Proportional — joint operations only, not for joint ventures

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