ltInsert Picture Heregt

Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)Presenterrsquos NamePresenterrsquos Title

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Global Momentum Towards IFRS

Source IASB Dec 2007

Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs

Expected Benefits from IFRS Convergence A single standard for global business

More efficient access to capital

Reduced cost of financial reporting

Improved transparency for

investors

Itrsquos Not About Accounting Itrsquos About Capital Markets

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesProposed implementation timeline from the SEC

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Global Momentum Towards IFRS

Source IASB Dec 2007

Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs

Expected Benefits from IFRS Convergence A single standard for global business

More efficient access to capital

Reduced cost of financial reporting

Improved transparency for

investors

Itrsquos Not About Accounting Itrsquos About Capital Markets

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesProposed implementation timeline from the SEC

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Global Momentum Towards IFRS

Source IASB Dec 2007

Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs

Expected Benefits from IFRS Convergence A single standard for global business

More efficient access to capital

Reduced cost of financial reporting

Improved transparency for

investors

Itrsquos Not About Accounting Itrsquos About Capital Markets

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesProposed implementation timeline from the SEC

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Expected Benefits from IFRS Convergence A single standard for global business

More efficient access to capital

Reduced cost of financial reporting

Improved transparency for

investors

Itrsquos Not About Accounting Itrsquos About Capital Markets

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesProposed implementation timeline from the SEC

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesProposed implementation timeline from the SEC

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Companies are required to retrospectively apply IFRS to all periods presented as if

they had always been in effect

Cumulative Reporting Requirements

During the transition period from US GAAP to IFRS firms must continue to report in

US GAAP and any local statutories as well as begin tracking IFRS equivalents

Multi-GAAP During Transition

A study comparing of the impact of IFRS adoption in the UK reveals that net income

generally rose by 39 while equity declined by 23 UK GAAP is considered

close to US GAAP in most areas

Potential Impact on Bottom Line

Donrsquot Know 9

Within 3 years55

Within 7 years

8

Within 5 years26

Growing awareness of complex requirementshellip

hellipdrives preference for early planningand assessment

Impact on US CompaniesThe value of starting early

Sources European Financial Reporting Research Group Deloitte Touche Tomatsu

More than 7 years

2

ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo

Ken Wild Global IFRS Leader Deloitte

Within what timeframe would your company adopt IFRS if given a choice

Source Deloitte 2007

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

2009 2010 2011 2012 2013 2014 2015 2016

Impact on US CompaniesStart early for transition period with multi-GAAP

2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009

2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS

2014 Large accelerated filers begin filing in IFRS

2015 Accelerated filers to begin filing in IFRS

2016 Non-accelerated filers begin filing in IFRS

Source SEC Announcement Aug 2008

Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences

IFRS 2500 PagesUS GAAP 25000 Pages

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Much is the Samehellip

Approach(Some Examples)

IFRS US GAAP

Revenue Recognition

Fair Market (eg AR or Inventory Valuation)

Detailed Disclosure

Segment Reporting

Chart of Accounts Not Mandated

Distinction Between Tax and External Reporting

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

hellipBut There are DifferencesUS GAAP is always more specific plus

Approach(Some Examples)

IFRS US GAAP

Fair Market Revaluation Fixed Assets amp Investments

Only Certain Fixed Assets

Extraordinary Items None Rare (Negative Goodwill)

Consolidation Control 2 Models

Joint Ventures Proportional OK Only Equity

Research amp Development Capitalized Expensed

Inventory No LIFO LIFO OK

Impairment 1 Step Reversible 2 Step No Reversal

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Industry-specific ConsiderationsAreas of Potential Concern

IFRS Change Area PPE RampD FV INV IMPAIR MampA

Financial Services

High Tech

Retail

Communications

Utilities

CPG

Life Sciences

PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation

INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Oraclersquos History with the IASB

bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo

ndash Attend the Standards Advisory Council (SAC) meeting three times a year

ndash Provide input on practicalityndash Get a heads up on features needed

bull National domain experts monitor Local GAAP

International Accounting Standards

Boardreg

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

Communications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences ServicesOther

Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe

All Stages Apply Policy and Control Management

Determine impact on accounting in

subsystems

Configure accounting rules

and set up ledgers

Process and report using dual accounting

Milestone 3Transactions Recorded

in Multiple GAAPs

Stage 3Record

Transactions in both GAAPS

Milestone 1Completed Preliminary

Study

Stage 1Study Impact amp

Determine Strategy

Perform Preliminary Study

Assess Impact

Determine Strategy

Determine changes to

business model

Transform operations using

IFRS results

Report IFRS results increase

shareholder value

Stage 4Transform Your

Business amp Win with IFRS

Milestone 4Business Model

Optimized

Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage

Collect GAAP financial results

Adjust and consolidate under

GAAP amp IFRS

Report reconcile and audit results

Milestone 2IFRS Reports Produced

Stage 2Enable Top End

Reports

Oracle Enables Key Stages in IFRS Action Plan

Stage 2Enable Top End

Reports

Stage 3Record

Transactions in both GAAPS

Stage 1Study Impact amp

Determine Strategy

Stage 4Transform Your

Business amp Win with IFRS

Oracle Enterprise Performance Management

Oracle ERP Financials

Other ERP Financials

Oracle Industry Specific

Applications

Oracle Governance Risk amp Compliance Suite

Custom or Legacy

All Stages Apply Policy and Control Management

Oracle Enables Key Stages in IFRS Action Plan

Stage 2Enable Top End

Reports

Stage 3Record

Transactions in both GAAPS

Stage 1Study Impact amp

Determine Strategy

Stage 4Transform Your

Business amp Win with IFRS

Oracle Enterprise Performance Management

Oracle ERP Financials

Other ERP Financials

Oracle Industry Specific

Applications

Oracle Governance Risk amp Compliance Suite

Custom or Legacy

All Stages Apply Policy and Control Management

DOCUMENT ATTACHMENTS

CORE CONSOLIDATION FEATURES

FLEXIBLE REPORTING

CUSTOM DIMENSIONS

GAAP IFRS

Flexible Rules Engine

Journal Entries and Audit

Enables tracking of GAAP vs IFRS adjustments

Multiple reporting standards in a single solution

Creates ldquoElectronic Binderrdquo of all adjustments

Easy to reconcile and trend GAAP vs IFRS results

Oracle Enterprise Performance Management Enable Top End IFRS Reporting

IASIFRS SUPPORT SINCE 2000Thousands of customers overseas

reporting under IFRS

ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards

SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS

IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP

IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip

Segments etchellip

Flex ChartFieldshellip

bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ

bull Impairment ProcessingImpairment identificationUnplanned depreciation

Ledger SetCode

DifferencesExpanded COACalendarUSD

US PrinciplesExpanded COACalendarUSD

DUAL GAAP ACCOUNTING

GAAP

GRC DOCUMENTATION REPOSITORY

Oracle Governance Risk and Compliance SuiteManage changes to policies and controls

COMPLIANCE WORKFLOW

Single subledger transaction creates multiple accounting representations

APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS

Automate steps to audit IFRS compliance

Record changes to business process due to IFRS

Control changes to ERP applications

Monitor status of testing and exceptions

IFRS Change Potential for Business Transformation

IFRS OK for SEC and for 60+ countriesrsquo statutories

bull Improve dramatically your reporting process consistency and management vision

bull Consider instance ledger data consolidation

bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities

bull Consider buying that fleet of planes you use

bull Evolve your leasing revenue business to an equipment sales business

Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011

Transform Your Business amp Win with IFRS Going beyond compliance

ltInsert Picture Heregt

ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo

ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo

Andrew MidgleyHead of Financial Reporting

Pearson

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

IASIFRS SUPPORT SINCE 2000Thousands of customers overseas

reporting under IFRS

ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards

SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS

IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP

IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip

Segments etchellip

Flex ChartFieldshellip

bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ

bull Impairment ProcessingImpairment identificationUnplanned depreciation

Ledger SetCode

DifferencesExpanded COACalendarUSD

US PrinciplesExpanded COACalendarUSD

DUAL GAAP ACCOUNTING

GAAP

GRC DOCUMENTATION REPOSITORY

Oracle Governance Risk and Compliance SuiteManage changes to policies and controls

COMPLIANCE WORKFLOW

Single subledger transaction creates multiple accounting representations

APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS

Automate steps to audit IFRS compliance

Record changes to business process due to IFRS

Control changes to ERP applications

Monitor status of testing and exceptions

IFRS Change Potential for Business Transformation

IFRS OK for SEC and for 60+ countriesrsquo statutories

bull Improve dramatically your reporting process consistency and management vision

bull Consider instance ledger data consolidation

bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities

bull Consider buying that fleet of planes you use

bull Evolve your leasing revenue business to an equipment sales business

Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011

Transform Your Business amp Win with IFRS Going beyond compliance

ltInsert Picture Heregt

ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo

ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo

Andrew MidgleyHead of Financial Reporting

Pearson

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

GRC DOCUMENTATION REPOSITORY

Oracle Governance Risk and Compliance SuiteManage changes to policies and controls

COMPLIANCE WORKFLOW

Single subledger transaction creates multiple accounting representations

APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS

Automate steps to audit IFRS compliance

Record changes to business process due to IFRS

Control changes to ERP applications

Monitor status of testing and exceptions

IFRS Change Potential for Business Transformation

IFRS OK for SEC and for 60+ countriesrsquo statutories

bull Improve dramatically your reporting process consistency and management vision

bull Consider instance ledger data consolidation

bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities

bull Consider buying that fleet of planes you use

bull Evolve your leasing revenue business to an equipment sales business

Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011

Transform Your Business amp Win with IFRS Going beyond compliance

ltInsert Picture Heregt

ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo

ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo

Andrew MidgleyHead of Financial Reporting

Pearson

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

IFRS Change Potential for Business Transformation

IFRS OK for SEC and for 60+ countriesrsquo statutories

bull Improve dramatically your reporting process consistency and management vision

bull Consider instance ledger data consolidation

bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities

bull Consider buying that fleet of planes you use

bull Evolve your leasing revenue business to an equipment sales business

Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011

Transform Your Business amp Win with IFRS Going beyond compliance

ltInsert Picture Heregt

ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo

ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo

Andrew MidgleyHead of Financial Reporting

Pearson

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

ltInsert Picture Heregt

ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo

ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo

Andrew MidgleyHead of Financial Reporting

Pearson

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

ltInsert Picture Heregt

Agenda

bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

24

Key Takeaways

bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines

bull IFRS resources are scarce ndash start planning and education sooner rather than later

Start Early

bull Report using IFRS principles with Oracle EPM

bull Push changes into general accounting with Oracle ERP Financials

bull Document and test IFRS controls with Oracle GRC

Leverage Technology

bull Consider how to optimize your business and gain competitive advantage through IFRS

bull Align your business model with the new capital market model

Optimize Your

Business

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

To Learn More

Webcasts

Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle

Whitepapers

Preparing US Companies for the Transition to IFRS

Managing the Transition to IFRS

In Person Events

IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal

• Slide Number 1
• Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
• Agenda
• Global Momentum Towards IFRS
• Expected Benefits from IFRS Convergence A single standard for global business
• Impact on US CompaniesProposed implementation timeline from the SEC
• Impact on US CompaniesThe value of starting early
• Impact on US CompaniesStart early for transition period with multi-GAAP
• US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
• Much is the Samehellip
• hellipBut There are DifferencesUS GAAP is always more specific plus
• Industry-specific ConsiderationsAreas of Potential Concern
• Agenda
• Oraclersquos History with the IASB
• Slide Number 15
• Slide Number 16
• Slide Number 17
• Oracle Enterprise Performance Management Enable Top End IFRS Reporting
• ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
• Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
• Slide Number 21
• Slide Number 22
• Agenda
• Key Takeaways
• To Learn More
• Slide Number 26
• Slide Number 27
• Slide Number 28