What is the purpose of the chart of accounts for a business? It is not to produce a set of regulatory accounts. That’s the role of the Financial Accountant. Therefore using a regulatory chart of accounts is not what the business needs. A chart of accounts sole purpose is to give structure to the accounts that are needed in the business so that they appear on the correct place in the financial statement. Nothing about that relies on regulation. Regulation over complicates the chart of accounts and makes them hard to verify.
Ok so Dave produces the chart of accounts. Tell me how you will verify it? You can’t that’s why it hasn’t been done. You never will. By some miracle you actually adopt the chart of accounts Dave produces who is going to monitor the legislation to ensure that the format hasn’t changed? No one is my guess therefore maintainability has just gone out the window. It’s in air of maintainability and nothing more than that.
A simple chart of accounts is far more maintainable because it is not overcomplicated as it simply implements basic accounting principles which is this type of account goes in this section. Nothing about the law changes that. Hitching your wagon to the law is no guarantee of anything other than you will likely never have any localisation in many, many countries. For no reason other than dogma. Complicated is the enemy of maintainability.
IFRS is irrelevant. The accounts used in the business are primarily management accounts therefore IFRS is an irrelevance. The Financial Accountant gets to worry about that. If that person wants some minor tweaks to the chart of accounts that person will make their case. The Director of Finance, who almost certainly is a Management Accountant, will decide whether it is adopted or not.
As I’ve stated before the Financial Accountant produces accounts for reporting. There are incompatibilities between Management Accounting and Financial Accounting in every business therefore you will never produce fully compliant Financial Accounts in Tryton. That needs understood. You are shooting for an unattainable goal. Yeah some might want to try implement some elements. Good for them but they will never, ever get a set of Financial Accounts that are legally compliant without affecting Management Accounting information. Management Accounting information is primary so where the incompatibilities arise Management Accounting win out.