Asset Under Construction - Group Ledger IFRS (1GF)

Assets under Construction (AuC) are a special form of tangible assets. They are usually displayed as a separate balance sheet item, requiring separate account determination and their own asset classes. During the construction phase of an asset, all actual postings are assigned to the AuC. Once the asset is completed, a transfer is made to the final fixed asset. Ledger-specific transactions such as Settlement Distribution Rule may influence the settlement result in different accounting principles.

This scope item is for IFRS.

Key Process Steps Covered

• Include invoice and final settlement for Assets under Construction (AuC) (a special form of tangible asset)
• Settle asset under construction
• Create assets for complete AuC settlement
• Maintain settlement rule for final settlement in parallel ledger
• Perform final settlement of the investment order (collective processing)

Benefits

• Support IFRS accounting principle
• Settle based on parallel ledger

Where is Asset Under Construction - Group Ledger IFRS(1GF) being used?

This Scope item is used in the following way:

• As a support function of Accounting and Financial Close within Finance Scope Item Group

Process flow of Asset Under Construction - Group Ledger IFRS (1GF)

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