Global Compliance and Reporting Services

Global Compliance and Reporting Services

Global Compliance and Reporting Services Accounting and financial systems and controls are at the heart of effective business and stakeholder management. We can help you get it right Accounting Compliance and Reporting is a truly integrated service that provides the outsourcing answer to our clients compliance and reporting challenges around the world. Our services are designed to help national and multinational companies achieve greater visibility and control across the Tax and Finance functions. Having efficient and accurate accounting and financial processes in place is critical to providing a complete and accurate view of your business at any one time. From time to time, enhancements may be necessary to increase the efficiency, accuracy or timeliness of management information, and deficiencies or weaknesses in reporting systems may occasionally need to be addressed. Our team works with clients to assess their needs and help them enhance their accounting and financial reporting processes as well as their key performance indicators. Global Compliance and Reporting services include: Accounting and Bookkeeping services Statutory Reporting Preparation services Financial Statements Close Process (FSCP) Accounting and Bookkeeping Services Accounting and Bookkeeping services are valued by both large and mid-sized companies. The operational support we provide facilitates year-end closing and ensures the quality of information for audit purposes as well as the quality of tax data for business, employment or corporate tax disclosures. Accounting and Bookkeeping services help our clients build a strong data foundation for a more efficient compliance and reporting process navigate local reporting during finance transformations as they transition to Shared Service Centers The objective of this service is to maintain accounting records for an entity in the local or group financial reporting framework, e.g. IFRS or others. This includes recording purchases, sales, employees, taxes, depreciation, amortization, accruals, reserves and sundry transactions journal entries in the general ledger maintained for the entity. The service also includes cost center or segment accounting records (a divisional or separate part of the general ledger) as well as accounts payable and receivable sub-ledgers and fixed assets. We also reconcile purchase orders approved by an entity and match them with supplier invoices as well as reconciling accounts receivable and accounts payable sub-ledgers or intercompany accounts, including defining the reconciliation process and sending an inter-company accounts reconciliation request on a timely basis. EY communicates any mismatch to the entity. In addition, we may perform bookkeeping for the following purposes: Assistance with the accounting setup phase of a (new) business and daily operations, including the incorporation process, support for accounting software implementation/migration, chart of accounts definition, finance/accounting processes design and implementation, accounting control systems design and implementation, and training Accounting remediation, account reconciliations, administrative accounting support or participation in an accounting project for an entity s finance/accounting department on a temporary basis (for example, because the entity lacks resources or expertise) Restoration of local accounting books in accordance with the requirements of local accounting legislation Preparation of accounting, tax and management reporting based on accounting books maintained by EY as well as on data provided by clients Permanent and one-off consulting services on accounting, tax and management accounting.

EY s Strength: Practical Approach EY specialists will provide your company with continuous access to new knowledge and solutions as well as our unique experience in solving similar problems. We will minimize the risk of expenses due to accounting errors, make the company s use of internal resources more effective and optimize the structure of your financial divisions. Project concept Company function Work in tandem Decision making Decision optimization EY function Accounting and reporting Cooperation with tax and other administrative bodies Accounting and Financial Reporting Services are simple Benefits for your company 1 2 3 4 An agreement is concluded. The procedure for circulating and storing documents is agreed with the client. Employees that you have authorized regularly provide our specialists with current primary documentation required for processing. Based on the information received, our specialists maintain all of the company s accounting records (transaction statements, business transaction ledger, payroll sheet, cash ledger), generate tax ledgers, calculate taxes and prepare and submit your reporting. An opportunity to focus attention on the company s core activities and make them more effective More effective utilization of financial information Assurance that services are in full and strict compliance with rapidly changing legislation Minimization of risks related to mistakes and misstatements of information in financial books Analysis and optimization of the accounting process and document flow Preparation of financial statements in accordance with RAS, IFRS and management reports Professional, highly skilled employees

Statutory Reporting Preparation Services Statutory Reporting and Financial Statement Close Process (FSCP) services are valued as an outsourcing option by both large and mid-sized companies. The support we provide facilitates the financial statement year-end close and financial statement compilation. We also assist our clients by continuously improving the finance function, providing insight and analysis to support business decisions, and helping to eliminate the uncertainty around growing statutory fees around the world. The objective of the Statutory Reporting service is to assist with the preparation of statutory financial statements or other financial information which may comprise a complete set of financial statements or, as required, less comprehensive financial information based on local requirements (for example, a balance sheet and income statement with notes, but excluding other statements that make up a complete set of financial statements). Our Statutory Reporting service also includes assisting with the preparation of a group reporting package in accordance with the local financial reporting framework. This service is always based on the availability of a final trial balance from the client. If the client needs assistance in creating a final trial balance, EY may provide this service as well, but in that case it will be regarded as support for the FSCP. When required by an entity, Statutory Reporting may include the preparation of a group reporting package in accordance with the local financial reporting framework or IFRS. The service also includes the preparation of supporting information (as requested, for example, by external or internal auditors) and, as authorized by management, liaising with external auditors on the year-end statutory audit. Work process 1 Information request Request for information required for the preparation of Statutory reporting Analysis of information provided by the company Communication with the company s representatives to clarify issues identified (one conference call or meeting) 2 Preparation of adjustments and re-classification (if any) Identification of accounting principles that are: identical to IFRS require regrouping or additional accounting transactions differ completely from IFRS with respect to recognition and evaluation principles Recording of initial data with IFRS adjustments (if any) in the transformation table 3 Preparation of Financial Statements Preparation/compilation of the annual Statutory Financial reporting package (Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Cash Flow Statement, Notes to the Financial Statements) in accordance with IFRS and sending it to the Company for approval 4 Provision of Statutory Reporting to the Company Provision of Statutory Reporting to Company management for review; approval, signing and submission along with the CIT return

Financial Statements Close Process (FSCP) Services In today s environment, having an effective and efficient financial close process is critical for managing your stakeholders and your business. We can work with you to develop and implement the most appropriate option. Shareholders and regulators expectations have placed increasing pressure on companies to provide clear and accurate accounting information on a timely basis. This information is critical to management and their ability to make informed decisions quickly. At the same time, businesses have become more complex, and accounting functions are being challenged to keep up with ongoing changes in the market particularly accounting changes while meeting management s reporting needs. A fast and accurate close process is thus key, enabling more informed decisions to be made with regard to your strategy and operational processes, and this means fewer risks and lower costs. Our approach: identify, diagnose, design and deliver. We take a phased approach to improving your financial close, starting with a review of your current processes to identify areas for improvement by means of in-depth interviews across your finance function. Using the results, we are able to diagnose options for process and system enhancement and help design solutions that are right for your business. In the delivery phase, we work with you to implement the proposed solutions and deliver a more effective and efficient financial close. This service includes: Assisting with closing Group/Local accounting records and producing a trial balance from which the financial statements, and, if applicable, the group reporting package are prepared. Reconciling account balances to the underlying records and identifying adjusting entries required to prepare statutory financial statements or other financial information. This may involve identifying cut-off entries; inventory valuation adjustments; closing and consolidation entries, such as calculating and recording taxes; depreciation or amortization; identifying accruals; updating reserves; and identifying sundry transactions and journal entries in the general ledger. Reconciling the final local statutory financial statements or other local financial information with the information provided in the group reporting package and identifying any adjustments required in the entity s accounting records to true up the information. Data gathering for tax accounting and tax compliance work. If the accounting records are maintained using the group s financial reporting framework and not the local financial reporting framework, reconciling the group s financial reporting framework with the local financial reporting framework. This may require the assistance of EY professionals familiar with the group s financial reporting framework, particularly when this is IFRS or US GAAP. Preparation of the tax provision for the statutory financial statements. This service may include the preparation of other financial information for other periodic reporting requirements (for example, interim financial information, customer and supplier aging, cash flow reporting, budgeting and forecasting). Advantages for your company The goal of fast closing is to optimize (accelerate) and improve the quality of preparation of financial statements and data for external auditors. Consolidation and enhancement of company status from the point of view of financial stability A higher level of corporate management and a correspondingly enhanced company image for the community of investors Increased operating efficiency The possibility of preparing not only annual, but also quarterly financial statements (accelerated transformation of financial statements) A reliable basis for timely management decisions

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 works together with companies across the CIS and assists them in realizing their business goals. 4,500 professionals work at 20 CIS offices (in Moscow, St. Petersburg, Novosibirsk, Ekaterinburg, Kazan, Krasnodar, Rostov-on-Don, Togliatti, Vladivostok, Yuzhno-Sakhalinsk, Almaty, Astana, Atyrau, Bishkek, Baku, Kyiv, Tashkent, Tbilisi, Yerevan, and Minsk). 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. 2016 Ernst & Young Kazakhstan LLP. All Rights Reserved. The information contained in this publication is for general guidance only. You should neither act, nor refrain from acting, on the basis of such information. The application of laws and regulations will vary depending on particular circumstances and may also undergo frequent change. You should take appropriate professional advice relating to your particular circumstances and the current status of the laws and regulations. EY disclaims all responsibility, including negligence, for all consequences of any person acting on, or refraining from acting in reliance on, information contained in this publication. www.ey.com Contact information Amangeldy Mussayev Partner Global Compliance and Reporting Теl.: +7 727 258 5960 amangeldy.mussayev@kz.ey.com Botagoz Bassanova Senior Manager Global Compliance and Reporting Теl.: +7 727 258 5960 botagoz.bassanova@kz.ey.com