Financial Accounting Advisory Services

Transcription

1 Financial Accounting Advisory Services October 2013

2 Agenda 3 About EY 13 Contacts 16 Page 2

3 Consolidation and reporting Page 3

4 Issues CFOs face in today s complex markets Competitive marketplace CFOs come under pressure to report accurately, quickly and often to management and stakeholders Investors demand a more frequent, more rapid and more detailed consolidation process CFOs are expected to take on the role of business partners and actively support senior management s decision-making Reporting needs Global organizations need information broken down to regional or branch of activities levels for management purposes, or to comply with local regulators Activity and financial figures should be reported monthly to the management to be consolidated and compared with budgets and forecasts Management challenges Faced with increasing demands and limited resources, CFOs constantly look for ways to increase their finance department s efficiency and effectiveness Integration of new entities, follow-up of purchase price accounting or disposals of entities can put the process at risk if not managed on time Page 4

5 Elements of a consolidation process Implement Operate Improve Acquire entities Sell entities Implement consolidation and reporting process for management, shareholders or regulators Operate while providing assistance, or partial or full process outsourcing Improve the process, including the IT system, fast close and internal control activities Support integration of new acquisitions for consolidation purposes Support entity disposal activities for consolidation purposes Operate Acquire entities process Implement Improve Sell entities Page 5

6 Complexity of the consolidation process and system New reporting (budget and tax reporting) Stakeholder objectives Complexity of needs to be integrated into the tool Number and diversity of actors Volumetrics Simple upgrade vs. new tools Number of entities Chart of accounts by destination New reporting data: Business units (vs. legal entities) Elimination of subconsolidations Change of responsibilities: decentralization Procedures or organization Historical data consolidation Organization's level of complexity Page 6

7 Complexity of the consolidation process where issues can arise Operate Data collection Intercompany process Top entries Control activities Financial statements Acquire entities IT reporting system Training Consolidation integration toolkit Sub-consolidation Purchase price allocation follow-up Push-down accounting Pro forma process Project management IT solutions Organization Procedures Resources Expertise Implement Process optimization Fast close IT development Outsourcing Insourcing Training Process documentation Improve Carve-out Sub-consolidation Pro forma Sell entities Page 7

8 What drives an efficient consolidation and reporting process? Your financial processes are interlinked with all your business processes and play a critical role in your business. Due to its complexity, the efficiency and effectiveness of this process depends on the following factors: Changes in requirements from regulators, standard setters and stakeholders Your capacity to anticipate and manage changes Stakeholder expectation Manage operations Continuous improvement Skills and resources IT tools Process Your IT reporting system, which collects data at local levels, performs automatic entries at group level and produces analyses and reports Your closing rules and reconciliations inside the group Consolidation skills of your personnel Your continuous improvement focus, including feedback and training for local teams to improve quality, documentation, audit trail and automation of tools Page 8

9 Reasons to improve your consolidation and reporting process Improve the quality of the reporting packages sent by local entities Save time on your intercompany reconciliation process Reduce manual consolidation entries Shorten the control activities of the consolidation process performed by the central team Obtain final reports directly from system outputs Integrate new entities without putting the whole process at risk Reduce dependence on individual employees while creating a way to share knowledge and document the consolidation process Update the specific setting of IT reporting tools to account for new analyses or GAAP requirements Coordinate or merge your business and financial consolidation processes Optimize and reduce costs Page 9

10 Consider your stakeholders Reporting requirements Implementing and improving consolidation processes Ensuring the compliance to regulatory consolidation needs Objectives Main issues Services Reporting process for management and shareholders Ensure correct data collection (accounting standards, reporting packages and IT system) Coordinate local and central levels Operate and ensure audit trail Analyze and report Establish financial statements Assistance in implementing tools Improving controls, IT systems and fast close Scoping of project execution and finalization Project and change management Business process transformation Transaction integration support Complementary process for compliance at the top or sub-levels Ensure the compliance with local requirements for sub-consolidations Optimize the compliance process with the group process Compliance and consolidation assistance Outsourcing Page 10

11 EY s support with your consolidation and reporting processes We assist our clients with every aspect of the consolidation and reporting process. We can help you with: Implementing, outsourcing, improving, organizing and operating your processes Assistance in implementing tools Improving controls, IT systems and fast close Supporting local and central teams Scoping project execution and finalization Project and change management Business process transformation Pre- and post-transaction integration support We can advise you on how to achieve faster, higher-quality reporting, control risks and develop skills and competencies. Operate Acquire entities process Implement Improve Sell entities Page 11

12 What benefits can you expect? Processes IT systems A choice between internal organization or outsourcing process (full or partial) Process optimization for rapid consolidation closing Optimized internal control activities Documentation of processes, including audit trail Most automated IT system for consolidation activities at central level Full web reporting package Automated system for reconciliation and transfer to the consolidation database Automated system for composing reports with data and wording Optimized system organization between consolidation for management and compliance purposes Resources Clear roles and responsibilities between local, intermediate and group level Adequate training programs Local and central team support Accounting Overall Assistance for management in meeting compliance for regional or group-level consolidations Optimized process interface between different compliance requirements (investors and regulators) and consolidation for management purposes Consolidation accounting support, including new GAAP requirements Increased awareness of your processes and tools Reduction of delay risk and stress on your organization during consolidation period, in particular, in pre-transaction disposals and post-transaction integration Compliance Page 12

13 About EY Page 13

14 Our methodology Identify Diagnose Design Deliver Sustain Close Validate requirements and perform engagementspecific planning Understand current state Evaluate impact on current state Generate and prioritize observations and next steps Agree on approach to design the project work plan Develop the project work plan Execute the project work plan Support continuous improvement Close out engagement Assess team members performance Deliver Kick off engagement delivery Execute engagement plan Monitor engagement progress Manage engagement economics Complete execution of the engagement plan Page 14

15 Your regional EY network Africa Angola, Botswana, Republic of Congo, Equatorial Guinea, Ethiopia, Gabon, Ghana, Guinea, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Seychelles, South Africa, Tanzania, Uganda, Zambia, Zimbabwe Belgium and Netherlands Germany, Switzerland and Austria Commonwealth of Independent States Azerbaijan, Belarus, Georgia, Kazakhstan, Russia, Ukraine, Uzbekistan Central and Southeast Europe Albania, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, FYR of Macedonia, Malta, Moldova, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey France, Maghreb and Luxembourg France, Luxembourg, Algeria, Morocco, Tunisia Financial Services Organizations Belgium, Channel Islands, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Switzerland, UK India London Mediterranean Italy, Portugal, Spain Middle East and North Africa Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Pakistan, Palestinian Authority, Qatar, Saudi Arabia, Syria, United Arab Emirates Nordics Denmark, Finland, Norway, Iceland, Sweden United Kingdom and Ireland UK, Isle of Man, Republic of Ireland EY Global Countries worldwide 140 Employees worldwide 167,000 US$ revenue ( ) 24.4b Page 15

16 Financial Accounting Advisory Services contacts EMEIA Thierry Cornille Laure Deshayes laure.deshayes@fr.ey.com Page 16

17 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com EYGM Limited. All Rights Reserved. EYG no. AU1909 EMEIA Marketing Agency ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com