Financial Accounting Advisory Services

Transcription

1 Financial Accounting Advisory Services May 2013

2 Agenda About EY 3 5 Automated accounting policy manual 11 Appendi 20 Credentials 21 Contacts 22 Page 2

3 About EY

4 EMEIA Sub-areas 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 Luembourg France, Luembourg, Algeria, Morocco, Tunisia Financial Services Organizations Belgium, Channel Islands, France, Germany, Ireland, Italy, Luembourg, 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 UK and Ireland UK, Isle of Man, Republic of Ireland Countries worldwide 140 EY Global Employees worldwide 167,000 US$ revenue ( ) 24.4b Page 4

5 Accounting policy manual solution 5 Page 5

6 Accounting policy need triggers Accounting policy need across the corporate life cycle Birth Sustained operations Rebirth evolution IPOs and other capital markets activity Organization and incorporation M&A activity Performance improvement: Shared service center implementation Process improvement Risk: Internal audit ERM Investments, divestitures, restructurings and M&A Major transaction: Driven by changes in capital structure, new regulatory oversight and other major organizational changes. Remediation or improvement projects: Driven by a need to remedy risk events or improve efficiency in organizations. These can occur in any phase of the corporate life cycle. Business as usual: Driven by changes in accounting standards, regulations and business processes throughout the corporate life cycle. Page 6

7 How we view things Four pillars, many options Corporate governance Enterprise risk management Policies Policy function Rapid assessment Focus: library Optimization Focus: content Governance Focus: process Education and deployment Focus: education Does your organization have all the policies it needs? Are there redundant policies or gaps, or inconsistencies across geographic or business lines? Are internal customers satisfied with policies? How do your policies compare to those of industry peers? Do your organization s policies comply with GAAP, IFRS, and/or prevailing regulatory requirements? Are they user-friendly? Are they the right length? Are they written in plain language? Are they linked to standard operating procedures (and desk instructions), to form a policy framework that supports the control environment? Does your organization have a policy on policies that defines when to create, revise or decommission policies, identifies process owners and sets approval requirements? How is consensus and stakeholder alignment achieved? How are policy changes communicated to the organization, and implemented? When are eternal resources used to aid with drafting? Are your policies centrally accessible to employees? Is training provided? Is employee learning monitored? When are eternal resources brought in to assist in the creation and delivery of training? IT-based solution: automated accounting policy manual (AAPM) Page 7

8 How we view things Four pillars, many options (contd) Policies Policy function Rapid assessment Optimization Governance Education and deployment Key activities: Key activities: Key activities: Key activities: Review policy library Conduct end-user interviews and/or surveys Perform peer benchmarking Establish current state and desired future state Communication on new or revised standards and impact on policies or other aspects of your business Deliverables: Project charter Interview or survey results Findings and recommendations Identify key gaps related to technical or regulatory adequacy, user-friendliness and overall structure Conduct interviews with process owners, technical accounting personnel and other stakeholders, to understand concerns and potential issues Develop policy prototype Draft new or refreshed policies and procedures Deliverables: Project charter Findings and recommendations Policy prototype for approval New and refreshed policies and procedures Review eisting policy governance framework and discuss leading practice governance Develop work plan to implement leading practice governance recommendations Draft new or refreshed policy on policies Create future state process flow Establish ongoing communications with company on new or revised standards and impact on policies Deliverables: Project charter Findings and recommendations New or refreshed policy on policies Future state process flowchart Develop work plan to implement leading practice deployment, education and communication recommendations Determine whether manual or technology-enabled deployment is preferred Co-develop and deliver education sessions on recent accounting developments, regulatory areas of focus or the policies developed Deliverables: Project charter Findings and recommendations New or revised training materials, co-developed with management Education sessions and materials Listing of technology-enabled solutions for consideration Assistance in implementation of technology solution Page 8

9 Benefits Organizations can reduce costs Organizations can reduce costs, improve efficiency and reduce risk by implementing clear and transparent accounting policies. Benefits Outcomes: Accounting and finance policies remain current and in compliance with rules, regulations and business processes. Accounting policies are applied consistently within the consolidated, global group. Benchmarking with leading practices and peers when adopting new policy positions. Design and deliver the most efficient and effective policy and procedure framework to internal customers and stakeholders. Value: Lower regulatory risk More effective financial statement close process: Reduced close time Fewer errors Lower costs Increased compliance and consistency Focus corporate energy on strategic and high-risk areas More educated and fleible workforce Why EY? Teaming and collaborative approach Our success with clients is attributable to our fleibility: We can be co-sourced with your team. We can operate with minimal disruption to you. Strategic insights Our broad eperience gained from other projects enables us to bring high-level strategic insights and a commercial approach. Global network We use our global network and draw on the diverse and in-depth skills of teams in more than 75 countries. Proven tools and methodologies Our robust methodologies and technology solutions allow us to hit the ground running, and provide tailored cost-effective strategies. Critical success factors: catalyst for change, eecutive sponsorship, stakeholder buy-in, efficient and effective methodology, PMO and third-party support. Page 9

10 Leading practice policies Sample accounting policy contents 1. Table of contents Providing background of company and policy issue helps frame policy and provide contet. 2. Scope and purpose Policy includes plain language eamples and definitions that are specific to the industry. 3. Hedge accounting requirements The audience is considered throughout the policy (i.e., does the audience have significant accounting epertise, or will additional eamples be required to eplain key concepts?) Regulatory reporting consideration Leveraging GAAP and regulatory epertise during policy drafting and creation can assist in efficient incorporation of such information. Including relevant disclosure requirements can help financial reporting employees to meet GAAP and regulatory disclosure requirements. 5. Authoritative guidance Including authoritative guidance references helps users to bridge the gap between guidance and company finance policy. Page 10

11 Automated accounting policy manual Page 11 11

12 Automated accounting policy manual (AAPM) Web-based accounting policy manual Features views of client products and processes Cross-references between all areas and sites Easy-to-update content Non-sophisticated base technology Easy user and rights management Browse through profit and loss (P&L) and financial statement policies New way of presenting different dimensions of a company s business Integration into eisting ICS (internal control system) Page 12

13 Automated accounting policy manual Benefits Offers a complete overview of the business No additional desktop-software (SaaS) needed Search and find functionality Cross-links to other programs Simple intranet integration Reports to track and analyze the manual utilization Highly customizable, up-to-date content, constant availability, easy access and low maintenance costs A widely accepted, easy-to-use consistent manual Page 13

14 Automated accounting policy manual Tool presentation Overall entry page with the manifold possibilities: Quick references to all possible views Display recently modified pages Display recently visited sites Display own favourites View of a statement of financial position structured in: Accounting policies Accounting instructions Affected IT systems Affected products Affected processes Page 14

15 Automated accounting policy manual Tool presentation (contd) Products entry page: Quick references to all products Manufacturing and revenue recognition of a specific product, including the following information: Posting records Affected balance sheet items Affected P&L items Page 15

16 Automated accounting policy manual Tool presentation (contd) Changemode: Easily insert tables, images and documents Four-eyes principle Versioning Reporting functionality to track and analyze tool utilization Page 16

17 Automated accounting policy manual Using simple, readily available technologies EY delivers EY provides a web-based platform which hosts the accounting manual for you, working with you to develop and update the content. Client SharePoint SharePoint makes it easy to store, synchronize and share important content. A simplified user eperience helps streamline common tasks, and creates sites to keep teams in sync. MediaWiki MediaWiki is a free wiki software application developed by the Wikimedia Foundation and others to power their websites. Page 17

18 Automated accounting policy manual Project schedule Identify Diagnose Design Deliver Sustain Activity Department Eternal support EY Business IT Project setup Schedule Resources and organization Software selection Tool Check for integration in IT landscape Scope of application Content Source and format of eisting content Integration process Manually Automatically Page 18

19 Automated accounting policy manual Project schedule (contd) Identify Diagnose Design Deliver Sustain Activity Department Eternal support EY Business IT IT infrastructure Installation User management Integration Content Gathering Preparation and processing Input Process Definition of further maintenance Definition of content delivery Rollout Testing Workshop Page 19

20 Appendi

21 Financial Accounting Advisory Services credentials Client Country Sector or industry Service Service description Listed multinational Italy Food and beverages Accounting manual Improvement of internal processes and accounting systems, accompanied by the development of new accounting guidelines and reporting manuals. Listed multinational France Oil and gas Accounting manual and benchmark analysis Compilation of a complete accounting manual (collection of eisting documentation, interviews with stakeholders, and benchmarks of companies in the oil and gas sector). Listed multinational Netherlands Media and entertainment Compliance analysis Client redesigned its accounting manual and the accounting plan to reflect revenue recognition issues. We reviewed its IFRS compliance and tested its implementation in overseas subsidiaries. Multinational not listed Germany Industrial products IFRS conversion and related accounting manual In the course of an IFRS implementation at the group, we supported the preparation of an accounting manual. Page 21

22 Financial Accounting Advisory Services contacts EMEIA Andreas Muzzu Partner Dr. Detmar Ordemann Eecutive Director Page 22

23 EY Assurance Ta Transactions Advisory About EY EY is a global leader in assurance, ta, 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. AU1784 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, ta, or other professional advice. Please refer to your advisors for specific advice. ey.com