Financial Accounting Advisory Services May 2013
Agenda About EY 3 5 Appendix 17 Contacts 18 Page 2
About EY
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 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 UK and Ireland UK, Isle of Man, Republic of Ireland Countries worldwide 140 EY Global Employees worldwide 167,000 US$ revenue (2011-12) 24.4b Page 4
Accounting close assistance
Objectives, scope and overall approach Objectives and scope Optimizing the accounting close process (ACP) includes reducing the number of days necessary to close the books and the resources needed to produce financial reporting. Areas of improvement relate to cost reduction and efficiency improvement. Our teams work with clients on the following: Performing a review of the current ACP Identifying and prioritizing improvement opportunities in the ACP Assisting in implementation of improvements Overall approach Our overall approach consists of the following steps and reports: Initialization through a kick-off meeting with you and our team Documenting the current ACP Collating and reviewing process data Identification of gaps and deficiencies negatively influencing the ACP Identification of opportunities for improvements Report findings Page 6
Overview of assistance in accounting closing Our view of the ACP Trial balance Accounting close process Financial reporting Data collection Entity close and submission Consolidation (group) Internal and external reporting (group) Closing of sub-ledgers Closing of general ledger Controlling (group) Internal reporting Interfaces between IT systems Accounting and finance manuals Chart of accounts Group reporting schedules Intercompany reconciliation and reporting Journal entries entity level Controlling entity level Reporting to parent (preliminary and final) Intercompany reconciliations Eliminations of intercompany balances, revenue and costs Journal entries group level Consolidation entries External reporting: Stock exchange communication Stakeholders information Management review Financial statements Notes Parent and group financial statements Finalization and approval Organization Page 7
How to improve the process delivers improvements in the following areas: Correlation between internal and external reporting Shorter reporting cycle Errors Delays From production to analysis Resources Quality issues Dependency on key personnel Reliability Controlling the environment Systems integration Intercompany transactions Consolidation Automation Reliance on Microsoft Excel Lack of performance culture Organizational silos Satisfying stakeholders Page 8
Detailed approach of accounting close assistance 1. Initialization Determine key ACP and identification of associated process owners Run ACP diagnostic and questionnaires Schedule meetings to discuss and review key accounting close processes 2. Documenting the current ACP Walk-throughs of sub-processes within scope of the project 3. Collate and review process data Review and consolidate information gathered through process walk-throughs 4. Identify gaps influencing accounting close process Analysis of gaps and deficiencies identified during walk-throughs Determination of the impact of gaps on ACP Work with key stakeholders to evaluate the gaps identified in current state 5. Identify opportunities for improvements Working out opportunities for improvements relating to gaps identified and evaluated Prepare the ACP vision for post implementation Assistance in improvements implementation 6. Report on findings Prioritized list of initiatives and quick wins Current and future flowcharts for in-scope processes Blueprint of improved ACP, including new ACP timetable Proposed steps and timing for implementation of improved ACP Page 9
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 10
Project road map [Month] Date of the end of the week [Month] Phase I Current state Step 1 Analysis of current state Step 2 Analysis of gaps Phase II Future state Step 1 Future procedures Step 2 Verification of procedures Step 3 Acceptance of procedures Phase III Implementation Step 1 Assistance Step 2 Training and support Activities performed by EY (with you) Activities performed by you Page 11
Accounting closing assistance Operating approach Phase I Phase I Current state Step 1 Analysis of current state Step 2 Analysis of gaps Scope of work: Analysis and walk-through of processes and procedures relating to current ACP Deliverables: Presentation summarizing the current ACP Phase II Future state Step 1 Future procedures Step 2 Verification of procedures Step 3 Acceptance of procedures How analysis is performed: Questionnaires filled out by you and our team Analysis of existing procedures and schedules relating to ACP Interviews and meetings with key personnel involved in the ACP Your role: Provide information and time of key personnel participating in ACP Phase III Implementation Step 1 Training Step 2 Assistance and support Our role: Analysis of information gathered, assessment and presentation of gaps and bottlenecks Page 12
Accounting closing assistance Operating approach Phase II Phase I Current state Step 1 Analysis of current state Step 2 Analysis of gaps Scope of work: Development of new procedures and schedules relating to ACP Deliverables: Procedures and schedules relating to future ACP Phase II Future state Step 1 Future procedures Step 2 Verification of procedures Step 3 Acceptance of procedures Phase III Implementation Step 1 Training Step 2 Assistance and support How analysis is performed: Analysis of the future state of the ACP by you and our team Verification and acceptance of the new procedures and schedules impacting the ACP Designing the new flow of processes constituting the ACP Your role: Verification and acceptance of the new procedures and schedules and new flow of processes constituting ACP Internal communication of procedures and schedules according to existing regulations Our role: Analysis, preparation and consultation of the final deliverables Page 13
Accounting closing assistance Operating approach Phase III Phase I Current state Step 1 Analysis of current state Step 2 Analysis of gaps Scope of work: Facilitating workshops to provide employees with an overview of new procedures and schedules for ACP Deliverables: ACP assistance summary report, including suggestions for correction activities Phase II Future state Step 1 Future procedures How analysis is performed: Assistance in dry-running the future state of the ACP Analysis of the future state of the ACP Step 2 Verification of procedures Step 3 Acceptance of procedures Your role: Implementation of activities and timeline, according to accepted procedures and schedule Phase III Implementation Step 1 Training Step 2 Assistance and support Our role: Assistance, support and coaching relating to implementing new ACP Preparation of summary report Page 14
Accounting closing assistance Project team members EY [Company name] Quality control EY s responsibility Steering committee [Name] Partner [Company name] Project sponsor Additional support [Name] Industry [Name] IT [Name] Tax [Name] Accounting Other team members, depending on demand Supervision of the project [Name] Project manager Project implementation [Name] Working team [Company name] Project manager [Company name] Working team Page 15
Appendix
Financial Accounting Advisory Services contacts EMEIA Sylvain Perdriau Partner sylvain.perdriau@fr.ey.com + 33 1 46 93 71 64 Jan van der Windt Senior Manager jan.van.der.windt@nl.ey.com + 31 6 2908 3721 Henrik Jürgensen Manager henrik.jurgensen@dk.ey.com + 45 51 58 28 89 Page 17
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