Source Hierarchies Used to Create Sibling Hierarchies

While there are use cases where you might want to create a second set of books based off a main hierarchy, there are also use cases where you might want to create a sibling hierarchy based off another sibling hierarchy. For example, let’s say the Main Company hierarchy below is your original hierarchy used to generate all GAAP financial statements. The Sibling IFRS hierarchy represents your second set of books. Adjustments are made to the members of your second set of books in order to generate financial statements that comply with IFRS. This hierarchy is generated based off the Main Company (GAAP) hierarchy.

Now, you need a third hierarchy for tax purposes. You want to generate this hierarchy based off the IFRS hierarchy (not the GAAP hierarchy) because you want to include the adjustments made to the IFRS hierarchy. In addition, you make even further adjustments to the Tax hierarchy prior to generating those financial statements.