FASB Section 52 Reporting and Consolidation for Sage 100
DSD Business System’s General Ledger Multi-Currency (GLMC) module for Sage 100 ERP is invaluable for international and multinational companies. This module supports the accounting requirements of the Financial Account Standards Board – Section 52. The Financial Accounting Standards Board (FASB) serves as a public information clearinghouse, and has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports.
Section 52 addresses the financial reporting of companies operating in foreign countries. A foreign company establishes a Functional Currency (or Base currency), which is the Currency used for financial reporting in the home country. The two requirements in this process are:
- Translation adjustments are an inherent result of the process of translating a foreign entity’s financial statements from the functional currency to U.S. dollars. In DSD’s Multi-Currency, General Ledger Accounts that are adjusted for their Period End values into U.S. dollars are marked as Current Valuation.
- Transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. For example, a U.S. company may purchase from a vendor in Euros, or a Swedish subsidiary may have a receivable denominated in rubles from a customer in India. Additionally, transactions are assigned their U.S. dollar values based on the exchange rate at the date of the transaction. Those General Ledger transactions are marked as Historical valuation.
DSD Business System’s General Ledger Multi-Currency module for Sage 100 ERP seamlessly handles all of the above requirements, producing financial statements in the functional currency as well as the U.S. FASB52 translation. A financial consolidation tool is also available, allowing the merge of U.S. company financials with foreign U.S. FASB52 translations.
DSD Business Systems has been a Sage Development Partner for the past 25 years. We currently have over 400 Enhancements to Sage 100 and have created thousands of custom solutions for end-users around the world. We have had the privilege of working with hundreds of Sage consultants, resellers, and end-users to produce powerful custom solutions that enhance the functionality of Sage 100.
To learn more about DSD Business Systems Enhancements and Custom Programming, please contact us at Enhancements@dsdinc.com.
Written by Ron Black, Senior Programmer at DSD Business Systems
