How to Configure Reporting for Compliance with International Financial Reporting Standard (IFRS)

Overview:

QNE Optimum Accounting Software includes built-in reporting standards that enable businesses to generate IFRS-compliant financial reports. By default, when a new database is created, QNE follows a standard reporting format, where certain elements, such as the order of asset classification in the Balance Sheet, may differ from IFRS guidelines. For example, Fixed Assets may be displayed before Current Assets instead of the IFRS-required format.

To ensure compliance with IFRS, users must update the reporting standards settings within the system. This adjustment ensures that financial statements, including assets, liabilities, and equity, are presented in the correct order, enhancing financial transparency and consistency.

By following the configuration steps, users can seamlessly transition to IFRS-compliant reporting, ensuring that financial statements—such as the Statement of Financial Position, Statement of Comprehensive Income, and other relevant reports—adhere to internationally recognized accounting standards.

Default Scenario:

The screenshot below shows the default format before configuring IFRS reporting. In QNE Optimum, Fixed Assets are displayed before Current Assets in the Balance Sheet (Statement of Financial Position). However, this default structure may not comply with IFRS guidelines, which require Current Assets to be listed first, followed by Non-Current (Fixed) Assets.

Procedure:

Step 1: Access System Options

1. Open QNE Optimum Accounting Software.
2. Navigate to the Maintenance Menu Ribbon.

Step 2: Open System Options

1. Click on System Options to access the system’s configuration settings.
   

Step 3: Select General Settings

1. In the System Options window, go to the General tab.
    

Step 4: Enable IFRS Reporting

1. Locate the Reporting Standards section.
2. Select Use International Financial Reporting Standards (IFRS) from the available options.
    

Step 5: Save Settings

1. Click Save to apply the changes.
2. Restart QNE Optimum (if necessary) to ensure the new settings take effect.
    

Step 6: Re-login to Apply Configuration

1. Log out of the system. 
2. Log back in to ensure the new IFRS configuration takes effect.
    

Output: Your system is now configured to generate IFRS-compliant financial reports in QNE Optimum!