Problem:
I have to come up with a solution in order to capitalize assets in 2 different accounting principles. 1- following IFRS requirements and 2 – Local requirement.
Solution:
1. If you determine these costs from the cost center then you can have different (assessment cycle) postings and then accordingly capitalize the same.
2.You can create 3 depreciation areas, 1 for IFRS, 1 for local gaap and a delta area to post the difference between IFRS and local gaap.
3. To add further to second pointl, once you can create separate depreciation areas then it has to tie up with leading and non leading ledger accordingly. This means that depreciation area (IFRS) will tie up with IFRS ledger (can be leading or non leading, depending on your design) and depreciation area (regulatory or local GAAP) can be assigned to Regulatory or local GAAP non leading ledger. You can then post to specific depreciation area by using transaction key functionality and to ledger by using ledger specific posting functionality.
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