GL Reconciliation on Intellimatch
1. Bank Reconciliation (IFRS 9 - Financial Instruments)
Scenario: Bank fee not recorded in the GL
Dr. Bank Charges Expense 1,000
Cr. Bank Account 1,000
2. Trade & Treasury Reconciliation (IFRS 7 & IFRS 13)
Scenario: Forex trade recorded at the wrong exchange rate
Dr. Foreign Exchange Loss 50,000
Cr. Accounts Payable 50,000
3. Intercompany Reconciliation (IFRS 10 - Consolidated Financial Statements)
Scenario: Intercompany sale not recorded in the subsidiary’s books
Parent Company - ABC Ltd:
Dr. Accounts Receivable - XYZ Ltd 500,000
Cr. Sales Revenue 500,000
Subsidiary - XYZ Ltd:
Dr. Inventory / Purchases 500,000
Cr. Accounts Payable - ABC Ltd 500,000
4. Accounts Payable & Receivable Matching (IFRS 15 & IFRS 9 - ECL Model)
Scenario 1: Revenue recognized before cash is received
Dr. Accounts Receivable 300,000
Cr. Sales Revenue 300,000
When cash is received:
Dr. Bank Account 300,000
Cr. Accounts Receivable 300,000
Scenario 2: Expected Credit Loss (ECL) on overdue invoices
Provision for Doubtful Debt:
Dr. Bad Debt Expense 50,000
Cr. Allowance for Doubtful Debts 50,000
Bad Debt Write-off:
Dr. Allowance for Doubtful Debts 50,000
Cr. Accounts Receivable 50,000
Summary of Key Ledger Entries
| Transaction |
Debit (Dr.) |
Credit (Cr.) |
IFRS Standard |
| Bank Charges (Not recorded in GL) |
Bank Charges Expense |
Bank Account |
IFRS 9 |
| Forex Trade Adjustment |
Forex Loss |
Accounts Payable |
IFRS 7, IFRS 13 |
| Intercompany Sale |
Accounts Receivable |
Sales Revenue |
IFRS 10 |
| Intercompany Purchase |
Inventory |
Accounts Payable |
IFRS 10 |
| Revenue Recognition |
Accounts Receivable |
Sales Revenue |
IFRS 15 |
| Cash Received |
Bank |
Accounts Receivable |
IFRS 15 |
| Provision for Doubtful Debt |
Bad Debt Expense |
Allowance for Doubtful Debts |
IFRS 9 |
| Bad Debt Write-off |
Allowance for Doubtful Debts |
Accounts Receivable |
IFRS 9 |