View
238
Download
0
Category
Preview:
Citation preview
IFRS – Impact on IndianBusiness and SAP Solution
Malolan PathankiSAP India Consulting
1. A brief overview of IFRS and its implications2. A few comments from SAP regarding IFRS3. SAP ERP and IFRS adoption overview4. SAP BusinessObjects and IFRS adoption overview5. Wrap-up
Agenda
What is IFRS?
International Financial Accounting StandardsGlobal wide standard for financial accounting and reportingCurr`ently in use in most of the world– Europe, Japan, Australia, China, etc.– Other countries are in the process of changing from local GAAP to International Financial Reporting
Standards (IFRS)How it affects you — Key deadlines
ICAI has “proposed” a deadline of 2011Dual Reporting begins in 2010Requires re-statement of opening 2010 Balance Sheet to IFRS standardsIFRS cutover from Local GAAP to IFRS is 2011– Local GAAP reporting requirements will not go away– Some industries will still require Local GAAP reporting
– Utilities, Oil and Gas — FERC reports remain US GAAP
Other key points to considerThe IFRS “answer” will be specific to your company, industry, and country– “One size fits all” does not apply for IFRSPrior planning including your consulting/audit partner and SAP is essential for success
Key Points — IFRS Adoption
Are There Any Benefits to IFRS?
Improved quality of reporting –A globally accepted set of principles-based standards may offer opportunities to consistently applyaccounting standards
Improved transparency and investor confidence –As use of IFRS becomes more widespread, the new standards will increase comparability forinvestment analysis and performance measurement
Reduced accounting complexity –US GAAP accounting rules are viewed as complex and difficult to applyIFRS is based on “principles” not rules which will provide the opportunity for more clearrepresentation of financial results
Potential process and cost efficiencies –The same financial reporting standards across the world will provide opportunities to simplify andcentralize financial reporting processes and functions
Cost of capital –A single global financial reporting standard will enhance the efficiency of capital allocation andshould reduce the cost of capital
Process and technology optimization –Converting to IFRS may provide an opportunity to improve and streamline key components of thecurrent SAP landscapes
SAP and our Partners see these benefits
Key IFRS Challenges
IFRS implementation is not only a reporting project. There aresignificant impacts on:
Company organization — Both corporate and subsidiary levelsValuation of individual business transactionsTransactional systems — May need software and hardware upgrades
Approaching key deadlinesEarly project planning and analysis leads to successful project
Parallel reportingNeed to run parallel reporting to enable prior year comparisons between the Local Accounting Standardand IFRS during the transition periodsNeed the ability to easily compare, reconcile, and explain the differences / changes between the LocalAccounting Standards and IFRS
Broad implicationsImplementation requires cross-functional team — Financial accounting, management accounting, tax, IT,Consulting Partners, and SAP ServicesNew closing process required to include additional new IFRS-specific information without increasing closingcycles
Transaction changesTop-side adjustments at a consolidation level may not always be sufficient to meet all IFRS requirements— Some changes may be appropriate at the SAP ERP / transactional levelNeed to capture additional data / information to meet extensive disclosure requirements
Potential Impact of IFRS on an SAP LandscapeFrom Ernst and Young
FI - Financial
CO - Controlling
AC – Asset Accounting
PS – Project Systems
HR – Human Resources
PP – Production Planning
MM – MaterialManagement
PM – Plant Maintenance
QM - Quality Management
SD – Sale andDistribution
Possible ImpactNeed to investigate to determine magnitude
SAP modules Process Areas
Manufacturing industry example
Purchasing Depreciation Sales Tracking
Make to Order Plant Shut Down Third Party Billing
GeneralLedger Book Close Accounts
ReceivableAccountsPayable Tax Consolidations SPL
Cost Element Cost Center Profit Centers Internal Orders ABC Costing Product Costing
Requisitions Purchase Orders Good Receipts InventoryManagement Bill Of Materials Master raw
materials
Employment History Payroll Training Career Management
Labor Material Down time and outages
Capacity Planning Material requirementsplanning Shop Floor
Planning Executions Inspections Certificates
RFQ Sales Orders Pricing Picking Packing Shipping
Masterproduction scheduling
Slide from Ernst & Young
IFRS Impacts to Our Clients – Industry InsightsFrom Accenture
OG Industry Level ofImpact Key Drivers
Products
CGS H Inventory, PP&E, Raw Material Hedges
Airline M Extensive use of leases, fuel hedges, PP&E
IndustrialEquipment M Revenue recognition – project accounting, LIFO reserves, PP&E
Retail H Leases, Asset Impairment (Store closures), PP&E, Inventory, Revenue Recognition, Taxes
Travel M PP&E, Advertising, Leases
HLS H Business Combinations, Intangibles (R&D), Asset Impairment, Inventories, PP&E, Contingencies andProvisions (Product Liability)
Automotive H Intangibles (R&D), Inventories, Asset Impairment, Restructuring, Contingencies and Provisions (LossContracts and Restructuring)
FinancialServices
Banking H Financial Instruments, derivatives, Asset-backed Securities
Capital Markets M Financial instruments, Derivatives, Advertising, Customer Loyalty Programs
Insurance H Insurance Contracts, Financial Instruments, Revenue Recognition, Financial Disclosure Reporting
More research is required but our hypothesis is that certain industries will beimpacted more than others due to IFRS.
Slide from Accenture
IFRS Impacts to Our Clients – Industry InsightsFrom Accenture (cont.)
OG Industry Level ofImpact
Key Drivers
Resources
Forest Products L LIFO, PP&E, Real Estate, Leases
Freight-Logistics L PP&E, Leases
Metals L PP&E, LIFO
Mining M PP&E, LIFO, Leases, Revenue Recognition – project accounting, real estate
Utilities H PP&E, Intangibles, Asset Impairments, Derivatives (hedges), Leases, Provisions, Taxes, BorrowingCosts
Chemicals M PP&E, R&D, Environmental Provisions, Impairment Testing, Joint ventures LIFO reserves
Energy H PP&E, Depletion Accounting, Joint Ventures, Business Combinations, Intangibles (R&D), Reserves,Revenue, Taxation, Environmental Liabilities, Derivatives
Building Materials L LIFO, PP&E, hedges
CHT
Media andEntertainment
L Intangible Assets – impairment testing, Revenue Recognition – multiple element arrangements,PP&E
Communications M PP&E, Leases, Impairment Testing, Revenue Recognition, R&D, Advertising, Customer LoyaltyPrograms
Aerospace and Defense M PP&E, Impairment Testing, LIFO, R&D, Derivatives, Revenue Recognition – project accounting
Electronics and HighTech
H R&D, Revenue Recognition – multiple element arrangements, Asset Impairment
Slide from Accenture
1. A brief overview of IFRS and its implications2. A few comments from SAP regarding IFRS3. SAP ERP and IFRS adoption overview4. SAP BusinessObjects and IFRS adoption overview5. Wrap-up
Agenda
Why Is SAP the Best Choice for IFRS?
SAP Business Suite solutions are fully IFRS capable and have been for many years4,000+ IFRS implementations in EMEA including 100+ US GAAP to IFRS conversions
SAP ERP 6.0 offers customers a best-in-class IFRS capable leading ledgerIntegrated SAP Business Suite is more flexible for upcoming IFRS changes
SAP BusinessObjects enterprise performance management (EPM) and SAP BusinessObjectsgovernance, risk, and compliance (GRC) solutions play a key role in helping organizationstransition to IFRS
Already available as standard in our applicationsStarter kits speed and smooth the transition processComprehensive complianceOpen to heterogeneous environments
Bottom line is SAP offers the most complete solution to support IFRS
There is NO simple long term solution to the IFRS reporting requirementIFRS adoption will likely require changes across the entire installed SAP Landscape
SAP and IFRS ComplianceSolutions and Services
Local Close/Transaction SAP ERP LayerSAP General Ledger– Parallel Account with multi-ledgersAsset Accounting– Multi-Asset Valuation AreasEtc.
Group Close/Reporting/Consolidation LayerSAP BusinessObjects– SAP BusinessObjects Planning and ConsolidationXBRL Publishing applicationEtc.
SAP ServicesSAP Field ServicesSAP General Ledger Migration support serviceSAP Service Landscape Optimization (SLO)Upgrade Support and Service
Partner AlliancesStrong relationship with our Partner Organization
Standard SAP Applications, SAP Services, and our Partners can providethe necessary support for your IFRS Project
SAP Solution Portfolio for IFRS
SAP BusinessObjectsSAP BusinessObjects EPM and GRCSolutionsSAP BusinessObjects
SAP BusinessObjects Planning andConsolidation + IFRS Starter KitSAP BusinessObjects FinancialInformation ManagementSAP BusinessObjects XBRL Publishing byUBmatrix
SAP Business Suite:SAP Business Suite 7
SAP ERP 6.0 –– SAP ERP Financials– SAP General Ledger
– Parallel Ledgers– Asset Accounting– Etc.
SAP Business Suite solutions are already IFRS capableSAP BusinessObjects solutions can also play a key role in helping organizations
transition to IFRSWith the combination of SAP ERP and SAP BusinessObjects solutions —
SAP offers the most complete solution to support IFRS
For Example SAP’s own IFRS ProjectLooked like this …
Adoptionof IFRS
@
Provides guidance and trainingProvides posting infrastructurePerforms certain reconciliationpostings for all company codes
Share-based payments and relatedhedge entries
Collects data for disclosures (viaexpanded reporting package)Supports identification of IFRS/US GAAP differencesDecides accounting for major openitems
Provides guidance and trainingProvides posting infrastructurePerforms certain reconciliationpostings for all company codes
Share-based payments and relatedhedge entries
Collects data for disclosures (viaexpanded reporting package)Supports identification of IFRS/US GAAP differencesDecides accounting for major openitems
Corporate Financial ReportingCorporate Financial Reporting
Identify reconciling items (i.e.,differences IFRS/US GAAP)Perform all reconciliation postingsexcept those performed by CFRBring open issues to the attention ofregional IFRS SpecialistComplete expanded reportingpackage and provide certification onaccuracy and completeness ofreconciling entries and disclosuresSupport KPMG‘s audit
Identify reconciling items (i.e.,differences IFRS/US GAAP)Perform all reconciliation postingsexcept those performed by CFRBring open issues to the attention ofregional IFRS SpecialistComplete expanded reportingpackage and provide certification onaccuracy and completeness ofreconciling entries and disclosuresSupport KPMG‘s audit
Collect all ambiguous issues fromindividual entities in the respectiveregionProvide guidance to solveambiguous issuesDiscuss complex issues with CFR(single point of contact in CFR foreach IFRS Specialist)
Collect all ambiguous issues fromindividual entities in the respectiveregionProvide guidance to solveambiguous issuesDiscuss complex issues with CFR(single point of contact in CFR foreach IFRS Specialist)
AuditIFRS opening balance sheetIFRS reconciliation 2006IFRS reconciliation 2007 andbeyondIFRS consolidated financialstatements 2007 and beyond
AuditIFRS opening balance sheetIFRS reconciliation 2006IFRS reconciliation 2007 andbeyondIFRS consolidated financialstatements 2007 and beyond
OrganizationPersonnel
ProcessesTechnology
Local SAP EntitiesLocal SAP Entities
Regional IFRS SpecialistsRegional IFRS Specialists Consulting Partner (KPMG)Consulting Partner (KPMG)
2009 2010 2010 2011
Begin IFRS Project Planning and LocalImpact to Determine SAP Landscape
Solution Required
Prepare OpeningBalance Sheetunder IFRS rules
Dual ReportingPeriod Ends
IFRS Go-LiveDate
2013
Begin configurationLandscape for IFRSa. Transaction Layerb. Reporting Layer
SAP GeneralLedger MigrationCompleted 1st
Qtr 2010SAP GeneralLedgerValidation Periodcompleted byYear End
2010
UpgradeProject to SAPERP 6.0CompletedSAP GeneralLedgerMigrationProject
Dual Reporting Period Go-Live IFRSPossible SystemLandscapeOptimization (SLO)Projects to clearLocal GAAPIssues
SAP Field Services + Customer – SAP ERP Layer
Begin IFRSProject
Consulting/Audit Partner, Customer + SAP Field Services
Go-Live with IFRSas primary groupreporting standard
Perform consolidationreporting in both the localaccounting standard andthe IFRS systems
ReviewExistingconsolidationsand XBRLcapabilities
Adapt the currentor deploy a newconsolidationapplication forgroup reporting
Go-Live with newor updatedconsolidationcapabilities
SAP Field Services + Customer – Reporting/Analytical Layer
IFRS: Implementation Timeline –Overview Recommendations (IN Timeline)
Typical Questions
Does SAP consider the implementation of IFRS a significant project?Yes, we do
The complexity of your project will be driven by your industry, company, and evencountry
Your current landscape status will also play a role in the complexity of your specific projectSystem upgradesSAP General Ledger migration projectsSLO projects
Your IFRS project will require input and guidance fromYour consulting/audit partnerSAP ServicesYou own internal experts
Is there a single best solution for IFRS?No, sorry
The best solution for your company will be the result of a thorough review of yourcurrent status and the overall impact on your company when adapting to IFRS
Some Frequently Asked QuestionsSAP’s View of IFRS
Some Frequently Asked QuestionsSAP’s View of IFRS (cont.)
Typical Questions
What type of support can I expect from SAP during this project?SAP will provide application support for our products
Basically we can help with basic configuration/consolidations and reporting helpFor correct interpretation of the IFRS rules and guidelines it is best you work with yourconsulting partner
What is the first step I should take to begin this IFRS project?SAP would suggest you contact both your consulting/audit partner and SAP for guidanceand preliminary planning
1. A brief overview of IFRS and its implications2. A few comments from SAP regarding IFRS3. SAP ERP and IFRS adoption overview4. SAP BusinessObjects and IFRS adoption overview5. Wrap-up
Agenda
2009 2010 2010 2011
Begin IFRS Project Planning and LocalImpact to Determine SAP Landscape
Solution Required
Prepare OpeningBalance Sheetunder IFRS rules
Dual ReportingPeriod Ends
IFRS Go-LiveDate
2013
Begin configurationLandscape for IFRSa. Transaction Layerb. Reporting Layer
SAP GeneralLedger MigrationCompleted 1st
Qtr 2010SAP GeneralLedgerValidation Periodcompleted byYear End
2010
UpgradeProject to SAPERP 6.0CompletedSAP GeneralLedgerMigrationProject
Dual Reporting Period Go-Live IFRSPossible SystemLandscapeOptimization (SLO)Projects to clearLocal GAAPIssues
SAP Field Services + Customer – SAP ERP Layer
Begin IFRSProject
Consulting/Audit Partner, Customer + SAP Field Services
Go-Live with IFRSas primary groupreporting standard
Perform consolidationreporting in both the localaccounting standard andthe IFRS systems
ReviewExistingconsolidationsand XBRLcapabilities
Adapt the currentor deploy a newconsolidationapplication forgroup reporting
Go-Live with newor updatedconsolidationcapabilities
SAP Field Services + Customer – Reporting/Analytical Layer
IFRS: Implementation Timeline –Overview Recommendations (IN Timeline)
Options for SAP Solution Configuration
Approaches available for multi-GAAP valuation within SAP ERP Financials
Approach Classic SAP GeneralLedger
Account Based Easiest to implementCan lead to a less than efficientChart of Accounts
Parallel Company Codes No additional functionalityplanned by SAPNot a Recommend Solution formost companies
Parallel Ledger Most transparent approachIndependent set of booksFuture IFRS requirements moreeasily accommodated
Special Ledger No additional functionalityplanned by SAPNot a recommend solution formost companies
Current recommended configuration approaches for SAP General Ledger
Parallel Ledger Approach – Scenario 1Applies to SAP General Ledger only
Why it WorksProvides IFRS and Local Accounting Standard reporting from multi-ledgers
Can be configured to meet both reporting requirements from the first go-live dateUtilizes the best features of the SAP General Ledger
Document SplittingSegment ReportingEtc.
Recommended option of complex installationsLarge differences between IFRS reporting standards and the current legal reportingstandard
Feeds properly formatted IFRS data directly into the Reporting and Analyticslayer
Simplifies reporting and requires little manual adjustment after consolidationsImplementation from the beginning of fiscal year
Matches IFRS time line
Parallel Ledger Configuration is recommended whereSegment reporting is requiredIncreased number of Ledger accounts is not desirableComplete set of separate legal reporting books is preferredDifferent fiscal year is needed for different legal sets of books
Account Based Approach – Scenario 2Can Be Used Across All GL Versions
Common
Accounts
Pure IFRS
Accounts
PureLocal GAAP
Accounts
Account Solution is recommended whereRelatively few valuation differences exist between IFRS and local GAAPNo issue with an increased number of general ledger accountsStandard reporting is usedDifferent fiscal years not required
How it worksUses single ledger for all posting
Could be the Leading Ledger for SAP General Ledger
Accounts are “grouped” according to legal reporting requirementsExample
– 300000 to 400000 Operational Chart– 500000 to 550000 IFRS– 600000 to 650000 Local GAAP
Each group of accounts must be in balanceRequires extra care to ensure correct account determinationAnd the establishment of a coding handbook.
IFRS Financial Statements report using common accounts and“pure” IFRS accounts together
Red Oval in diagram
Single Ledger
Parallel Company Codes and Special LedgerApproaches
Neither approach is the recommended solution for today’s environmentsThese approach options were recommended prior to the availabilityof the SAP General Ledger and the capabilities added by SAP BusinessObjects
In some cases these options may still be workable in special cases, but onlyafter a through review of the other recommended options with yourconsulting partner and SAP
Parallel Company Codes
Special Ledgers
Typical Questions
Do I have to upgrade to SAP ERP 6.0 and install the SAP General Ledger to meetthe IFRS requirement?
No, you can meet the IFRS requirements without an upgrade or the installation of the SAPGeneral Ledger
However, the adoption of IFRS would be much easier in most cases with the mostcurrent software release installed
I have just upgraded and installed the SAP General Ledger and my LeadingLedger and Asset Valuation area are set to Local GAAP. How can I make theswitch to IFRS?
In this instance we would suggest using Parallel Ledgers within the SAP General LedgerA combination of the Leading Ledger and Non-Leading Ledgers would be used toreport both Local GAAP and IFRS
SAP has several services that will help make the switch from Local GAAP to IFRS withinthe Leading Ledger and Asset Valuation area.
For the SAP General Ledger, a new migration scenario (7) is under developmentFor the Asset Valuation area, an SLO service will be required
Some Frequently Asked QuestionsSAP ERP Financials
Typical Questions
What is the difference between the Account Based approach and the ParallelLedger approach?
The Account Based approach holds all legal reporting data in a single ledgerIs suggested for smaller sized installations with minimal differences between LocalGAAP and IFRS requirementsWill add additional account numbers to the Chart of Accounts
The Parallel Ledger approach distributes legal reporting data to separate parallel ledgersIs suggested for larger installations with significant differences between Local GAAPand IFRS reportingMay require a separate table groups for separate ledgers
If I plan to upgrade to SAP ERP 6.0 and migrate to the SAP General Ledger whenshould I start planning the project?
In this example the time is NOW!Overall we see an upgrade followed by a migration project to take at least a year.Followed by the reporting validation period after the migration weekend and the IFRSplanning project would take another year.Which will take 2 years for the upgrade/migration and first phase of the IFRS project
Some Frequently Asked QuestionsSAP ERP Financials (cont.)
1. A brief overview of IFRS and its implications2. A few comments from SAP regarding IFRS3. SAP ERP and IFRS adoption overview4. SAP BusinessObjects and IFRS adoption overview5. Wrap-up
Agenda
SAP BusinessObjects solutions support IFRS
SAP BusinessObjects solutions are fully IFRS capable and have been for many years800+ successful IFRS implementations in EMEA
Key functionality to support the IFRS transition is available as standardDual/parallel reportingTop-side adjustmentsSupport for IFRS rules including IAS 7, IAS 16 etc.
Starter kits speed and smooth the transition processProvide pre-configured IFRS compliant content
Comprehensive complianceDocumentation, automated testing and reporting of internal controls in accordance with SOX404 and 302
Deep integration into underlying transactional and general ledger (GL) systemsIncluding SAP ERP, SAP Business Suite, and SAP NetWeaver BWApplications remain heterogeneous and open to non-SAP environments
Key requirements of consolidation and reportingapplications for a successful IFRS transition
Dual / parallel reportingData should all be held in a single database with minimal or no duplicationSufficient dimensionality, hierarchical views, structures, and currencies to categorize the informationComprehensive built-in audit trail
Top-side adjustmentsAbility to perform complex calculations, to perform and store multiple consolidations, and to report indifferent formatsHold the data in local GAAP with journal entries to produce the required reports for IFRS (or vice versa)Automate the calculation and storage of as many of adjustments as possible
Ease of report writingNeed to produce reports in more than one format during the transition phase - especially since the transitionwill likely require several years of running IFRS parallel with local GAAPPrescribed formats for IFRS reporting are different from those in local GAAP
IAS 7 (Cash Flow Statements) does not require reconciliation of net cash flow to movement in net debtFlexible and powerful end-user reporting capabilities that enable the head office consolidation team tocreate and change their own reports
Multiple labels for accountsAbility to assign different names to a single accountIAS 1 requires different balance sheet headings to those currently used under local GAAP
Stock = InventoriesFixed Assets = Property, Plant, and Equipment
Familiar and easy to useEnables rapid adoption by leveraging nativeMicrosoft Office tools (e.g. Excel)Consolidations business rules are configuredby finance users (no scripting required)User owned and managed
Process-centricCustomizable business process flows ensureconsistency and minimize trainingEnforce policies and procedures - track processstatus and completionStep-by-step guidance for users
Unified planning and consolidationSingle, integrated application reducesmaintenance, improves data integritySimplified deployment while enabling flexibleconsolidation and planning functions
SAP BusinessObjects Planning andConsolidation, version for the Microsoft platform
Streamlined planning, budgeting, forecasting, and fast closeStreamlined planning, budgeting, forecasting, and fast close
Rapid implementationPre-packaged content reduces implementationtimes by up to 80%Dynamic configuration enables easycustomization to specific requirementsComplete, generic reference implementation
Rapid and trusted legal complianceEmbedded expertise in meeting financialregulations including best practice in financialconsolidations and internal controlsDetailed process guidance for business users
Comprehensive scopeIFRS specific chart of accountsPre-configured IFRS consolidation rules,controls, and calculationsIFRS ready publishable financial statements
Starter kits for IFRS
Faster legal compliance – reduce implementation timesFaster legal compliance – reduce implementation times
Ease of use for finance usersBusiness users maintain sophisticated mappingsand launch loading tasks
Secure access to dimensional metadata, intelligentchecking and filtering of data
Simple to use and easy to deploy
Compliance, trust, and reliabilityFully automated and easily accessible audit trail
Drill-back allows tracing of consolidated resultsback to the original sources
Comprehensive validations ensure error prone datais loaded right-first-time
Connectivity to SAP and non-SAPsourcesApplication connectivity removes the need forintermediate flat files or manual re-keying of data
Database connectivity ensures almost any sourcecan be integrated with a full audit trail
Rapid Marts speed implementation
SAP BusinessObjectsFinancial Information Management
Powerful connectivity, mapping, and loading designed for business usersPowerful connectivity, mapping, and loading designed for business users
Implement operational controls toimprove business process management
Unify control environment across the enterprise
Manage by exception and perform timely remediation
Enforce accountability with hierarchical review,certification and sign-off process
Reduce cost without compromisingcompliance
Automate controls with “out-of-the-box” control scripts
Simplify integration across process andapplication boundaries
Streamline manual testing and assessments
Shrink audit cycles with rigorous compliance process
Enable lines of business to effectivelymitigate risks
Integration with other applications for effective mitigationof enterprise business risks
Role-based dashboards to monitor control activity status
End to End, Cross Enterprise Business Process ControlEnd to End, Cross Enterprise Business Process Control
SAP BusinessObjects Process Control
The role of eXtensible Business ReportingLanguage (XBRL) in the transition to IFRS
Mandate for public companies operatingin the U.S. to begin filing their financialreports using XBRL
Three-year timetableLargest 500 filers for fiscal periodsending on or after June 15th, 2009All other large accelerated filers in 2010All remaining companies in 2011
XBRL publishing will be an importantfacet of the IFRS transition process
Considering XBRL publishingrequirements from the outset will makethe IFRS transition process easier andreduce maintenance once the transitionis complete
SpeedQuickly navigate taxonomies and map dataEasy to use drag-and-drop mapping environmentFast, thorough validation of generated XBRLdocuments
SimplicityWorks with EPM solutions and SAP Business SuiteLink to and import disclosures stored in Microsoft WordInsulates users from dealing with complex XBRL syntax
FlexibilityEasily extend published XBRL taxonomiesComplies with the XBRL 2.1 specificationSupports basic and block text footnotes, dimensions,and business rules
SAP BusinessObjects XBRL Publishing byUBmatrix
Streamlining XBRL publishing for business usersStreamlining XBRL publishing for business users
SAP BusinessObjectsXBRL Publishing by UBmatrix
Excel WorkbookExcel Workbook
ReportBuilder
Supplement,Tag, Validate,
Publish
ReportBuilder
Supplement,Tag, Validate,
Publish
PreparedFinancial
Statements
PreparedFinancial
Statements
TaxonomyDesigner
Extend /Customize
Taxonomies
TaxonomyDesigner
Extend /Customize
Taxonomies
XBRL InstanceDocument
RegulatorsUS SECUK HMRCJapan FSAetc.
SAP Business Suite SoftwareSAP BusinessObjects EPM Solutions
The journal entries generated by the rules-based SAP BusinessObjects applicationprovide an exact audit trail as we reconcile the data for both Canadian reportingpurposes and IFRS standards. It makes it much easier to show both auditors andcompany management exactly what we’ve done…”
Neil Thompson, Manager of Financial Systems, Standard Life
The journal entries generated by the rules-based SAP BusinessObjects applicationprovide an exact audit trail as we reconcile the data for both Canadian reportingpurposes and IFRS standards. It makes it much easier to show both auditors andcompany management exactly what we’ve done…”
Neil Thompson, Manager of Financial Systems, Standard Life
SAP BusinessObjects customers have alreadytransitioned to IFRS
SAP BusinessObjects software has helped more than800 customers successfully transition from local GAAPto IFRS reporting
In parallel, our consolidation applications have alsohelped customers significantly reduce closing cycles
Diageo went from 12 days to 5 days after replacingHyperion EnterpriseReporting time reduced from 20 to 5 workdays at Rochewith HQ consolidation time cut from 12 to 2 daysRecticel reduced reporting time from 20 days to 15 days
“
Implementation optionsFinancial consolidation and reporting
2009 2010 2011
Prepare OpeningBalance Sheetunder IFRS rules
IFRS “go-live”Date (dualreporting ends)
20132010
Dual Reporting Period
Option 1: Parallel consolidation under both existing GAAP and IFRS during dual reporting phase (separate consolidation)
Note: The length of the dual reporting period is dependent on the number of years for which comparative reporting to be provided. During the dualreporting period the company will still file in accordance with current GAAP requirements but from IFRS “go-live” must disclose comparative resultsfor the entire dual reporting period in accordance with IFRS - therefore creating a requirement for reporting results under both standards.
Option 2: Primary consolidation in accordance with one “leading” GAAP with posting of adjustments to obtain ‘non-leading’GAAP “during” dual reporting phase
Option 3: Continue to consolidate under existing GAAP until IFRS go live date. Just prior to IFRS go live fully re-consolidatehistory for dual reporting period in accordance with IFRS (full / separate consolidation)
Option 4: Continue to consolidate under existing GAAP until IFRS go live date. Just prior to IFRS go live books “adjustments” tore-state consolidated history for dual reporting period in accordance with IFRS
What action should I take now?
Check whether your existing financial consolidation and reporting systems arecapable of taking on the challenge of IFRS in parallel to your current GAAP reporting
Can changes be made easily, quickly and cost effectively?Can they hold different sets of adjustments for current GAAP and IFRS as well as multipleconsolidations?Can they support the various reporting requirements including creation of different reportsfrom the same data?How have existing local GAAP rules been configured - have they been hard-coded?Can they be loosely coupled to the transaction systems through middleware, so that changeselsewhere in the systems environment do not disrupt financial reporting?Do they offer an accelerated approach or toolset for building IFRS financial statements?Are the people that designed and configured the system still with the organization?How easy will it be to roll out updated systems to the reporting units?Do they unify planning and consolidation?How easy will the system be to maintain?Can the transition be achieved without adding unnecessary risk or introducing complianceissues?
1. A brief overview of IFRS and its implications2. A few comments from SAP regarding IFRS3. SAP ERP and IFRS adoption overview4. SAP BusinessObjects and IFRS adoption overview5. Wrap-up
Agenda
SAP Resources
You will find further information about our Partners and SAP’s approach to IFRS at:
SDN Community Websitehttps://www.sdn.sap.com/irj/sdn/nw-scheduling
Customer Value Network Site devoted to IFRShttps://www.sdn.sap.com/irj/bpx/ifrs
7 Key Points to Take Home
You should consider IFRS as a major projectAs with any project, early planning and the complete understanding of the requirements will lead
to a successful outcomeBegin planning now!! 2013 is not that far awayYour IFRS project will require engagement with you Consulting Partners, SAP, and your own in
house expertsThere is no “sliver bullet” or single standard solution for IFRS adoptionThe IFRS adoption provides an opportunity to update and modernize your current landscape
and releaseIFRS adoption within your SAP landscape will most likely require changes to both the SAP ERP
and the Analytical and Reporting systems
Thank you!
Copyright 2008 SAP AGAll Rights ReservedNo part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos aretrademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world.Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius and other Business Objects products and servicesmentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in several other countries. Business Objects isan SAP Company. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document servesinformational purposes only. National product specifications may vary.The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior writtenpermission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies,developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please notethat this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrantthe accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express orimplied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitationshall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in thesematerials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.
Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durchSAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie diedazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Business Objects und das Business-Objects-Logo,BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius und andere im Text erwähnte Business-Objects-Produkte und -Dienstleistungen sowie die entsprechendenLogos sind Marken oder eingetragene Marken der Business Objects S. A. in den USA und anderen Ländern weltweit. Business Objects ist ein Unternehmen der SAP. Alle anderen in diesemDokument erwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich unddienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen.Die in dieser Publikation enthaltene Information ist Eigentum der SAP. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Formauch immer, nur mit ausdrücklicher schriftlicher Genehmigung durch SAP AG gestattet. Bei dieser Publikation handelt es sich um eine vorläufige Version, die nicht Ihrem gültigenLizenzvertrag oder anderen Vereinbarungen mit SAP unterliegt. Diese Publikation enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts. SAP entsteht ausdieser Publikation keine Verpflichtung zu einer bestimmten Geschäfts- oder Produktstrategie und/oder bestimmten Entwicklungen. Diese Publikation kann von SAP jederzeit ohne vorherigeAnkündigung geändert werden.SAP übernimmt keine Haftung für Fehler oder Auslassungen in dieser Publikation. Des Weiteren übernimmt SAP keine Garantie für die Exaktheit oder Vollständigkeit der Informationen,Texte, Grafiken, Links und sonstigen in dieser Publikation enthaltenen Elementen. Diese Publikation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt. Diesgilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der Nichtverletzunggeltenden Rechts. SAP haftet nicht für entstandene Schäden. Dies gilt u. a. und uneingeschränkt für konkrete, besondere und mittelbare Schäden oder Folgeschäden, die aus der Nutzungdieser Materialien entstehen können. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.Die gesetzliche Haftung bei Personenschäden oder Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinks zugreifen,unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen über InternetseitenDritter ab.Alle Rechte vorbehalten.
Recommended