SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

What distinguishes the ledger approach from the accounts approach to parallel valuation in Asset Accounting?

1. In the ledger approach, each depreciation area is assigned a ledger group.

2. In the accounts approach, a technical clearing account is defined for asset acquisitions.

3. In the accounts approach, separate accounts are assigned for each accounting principle.

4. In the ledger approach, additional depreciation areas are maintained for delta valuation.

The correct answer is: In the accounts approach, separate accounts are assigned for each accounting principle.

The ledger approach and the accounts approach are two methodologies used in SAP Asset Accounting for handling parallel valuations, which involve managing different valuations for the same asset based on various accounting principles, such as local GAAP and IFRS. The correct answer highlights that in the accounts approach, separate accounts are assigned for each accounting principle. This structure allows for distinct accounting entries tied to various valuation methods or standards. For example, if a company needs to comply with different regulatory frameworks, they can create separate accounts to manage the recording and reporting of asset values according to each principle. This method makes it easier to perform reconciliations and ensures that financial statements are accurate under each accounting standard. Conversely, the ledger approach focuses on the allocation of depreciation areas that are regulated by ledger groups. Each depreciation area shares a common set of accounts but may have different rules for calculating depreciation depending on the ledger group assigned. This contrasts with the accounts approach, where more individualized handling of accounts per principle is utilized. Understanding these distinctions helps in recognizing how each approach can impact financial reporting and compliance with various regulations, which is critical for effective financial management within organizations using the SAP FI module.