IFRS 18 will be effective 01/01/2027 in the EU.
It includes legal requirements to categorize Profit & Loss transactions into 5 groups: Operating, Financing, Investing, Income Tax and Discontinued Operations.
Specifically exchange rate adjustments are to be categorized according to their originating transactions which could be either one of the 5 groups. Currently D365 FSCM only has 4 exchange rate adjustment ledger accounts in ledger setup:
- Unrealized loss
- Unrealized profit
- Realized loss
- Realized profit
All foreign exchange rate revaluation functionality in the different modules use these 4 general ledger accounts. 4 ledger accounts for FX adjustments aren’t sufficient to cover future IFRS requirements.
We kindly ask you to outline your plan and roadmap to ensure D365 FSCM fully supports the IFRS 18 requirements for categorizing P&L transactions by 2027.
Comments
We need to comply with the new IFRS 18 requirement effective 1 July 2026, which mandates classification of foreign currency revaluation differences into Finance, Operating, and Investing categories. And want to configure separate accounts for foreign currency revaluation, including realized and unrealized gains and losses, for each category. We found that the current foreign currency revaluation posting profile functionality in D365 only partially meets our needs.We require realized gain/loss account mapping for the General Ledger and Bank modules to properly capture Finance and Investing categories in line with IFRS 18. Our business requires settlement of monetary accounts within the General Ledger module, making this mapping essential.Looking forward for an update on this from PG team, hope it has already acquired the required votes.
Category: General Ledger
This is essential for customers who must comply with IFRS 18 legal standards. Without the roadmap/guidance, organizations face significant challenges in meeting regulatory obligations and maintaining compliance. Looking forward to hear about the release of the documentation.
Category: General Ledger
This requirement is very important for customers that must meet the IFRS 18 legal rules. Looking forward seeing progress.
Category: General Ledger