IT SOLUTIONS

IFRS reporting solution

Solution description:

«IFRS reporting solution» is a customized solution for IFRS reporting automatization based on IBM Planning analytics. It increases data accuracy, process efficiency and data preparation process transparency, as well as reduces number of assumptions caused by data preparation labor effort.

Detailed description:

«IFRS reporting solution» provides integrated space with wide variety of automated functions: data collection, storage and enrichment with information from accounting systems; data calculations and opportunity to manually input additional information by IFRS standards; reporting formats for audit and analysis, as well as for reporting publication and sending out reports to key users.

Functional details:

  • Accounting data, credentials: module for upload, verification, primary processing by mappings, storage of credentials.
  • Discounting of future cash flows; object depreciation for entire life cycle;
  • Mark to market valuation;
  • Cost accounting: forward step-by-step calculation by adjusted data (reflection of direct expenses by cost centers, step-by-step allocation, cost value and WIP (work in progress) representation by costs structure);
  • Stand-alone IFRS reports: manual adjustments, enrichment with information from accounting systems, additional data calculations;
  • Data consolidation by group:
    • Setting up intra-group reconciliation between companies;
    • Stand-alone reporting aggregation by group;
    • Inter-company balance elimination: revenues and expenses, incoming and outgoing cash flows, receivables and payables, active assets (property asset, stocks) and liabilities (capital); impact on retained profit;
    • Recalculation of minority share;
    • Calculation of income tax by effective tax rate;
  • Including calculated adjustments by pre-set algorithms.
  • Financial indicators and valuation multiples: EBITDA, FCF, NPV, EV, etc.
  • Data representation at formatted pre-set views: fixed reports, dashboards with visualizations and compact reports.
  • Budgeting model integration: building up data forecasts by IFRS standards, actual-vs-plan reporting.
  • Integration with standard tools for reporting generation at the ‘Last mile’ stage.

Key solution features:

  • Opportunity to import data from accounting systems and MS Excel while saving analytical structure of data source and possibility to perform detailed analysis down to accounting record (or transaction, depending on customer requirements).
  • Storing historical data without speed loss while working with data for required period, information processing to provide historical data storage.
  • Easy software version upgrade – automated reproduction of all settings for new report version: algorithms, exchange rates, tax rates.
  • Multi-language data representation – system provides opportunity to store all reference data in different languages (by assigning several names for each reference table element).
  • Mappings for reference data RAS (Russian Accounting Standards) vs IFRS for information relocation (chart of accounts; cost items; accounting entities (property asset, intangible assets, financial contributions, etc.)).
  • Real-time model recalculation by pre-configured algorithms after updating incoming data – exchange rates, manually added accounting records, discount rates, uploading data from accounting systems, etc.
  • Opportunity to view algorithms – all pre-set algorithms can be reviewed by users, which provides possibility to perform audit of data preparation process and confirm data quality.
  • Users concurrent work with access diversification by cell and registration of actions, excluding risk of data loss.
  • Custom views – opportunity to set up personalized workplaces (e.g. for auditors, banks, internal users, etc.).
  • Complex formatted reports preparation – on the base of РА for Excel (can be set up by general users).

Competitive advantages:

  • Accumulated base of solutions for building up reports by IFRS standards, which provides opportunity to quickly set up individual model with necessary list of tools;
  • Incremental system set up with MVP on each phase. Determining priority modules for maximization of useful effect. Quick result: Setting up data upload > Relocation of historical data > Setting up manual input > Building up resulting forms. Model development – connection of necessary automated calculations.