Financial reporting automation



Automation of consolidated financial statements in accordance with IFRS is one of the most difficult tasks in the field of finance for the following reasons:

The reporting process, although it has a general procedure: closing the period, obtaining accounting data, preparing amendments, etc., it significantly differs from group to group, in such aspects as the degree of centralization of reporting, the level of unification, the depth of detail, and expected guidance from reporting. All these aspects must be taken into account in the system.
The reporting automated in the system should coincide with the already issued (and most often audited) reporting, at least in terms of incoming balances. This requirement essentially distinguishes the automation of reporting from, for example, budgeting. Detailed testing becomes a significant and labor-intensive part of the project.
When consolidating a group of companies, credentials in most cases come from various non-unified accounting systems. Integration of multiple systems requires an individual methodological approach to each data source.
When preparing reports, many algorithms are used that must be taken into account when automating. For example, translation into reporting currency, calculation of non-controlling interest, etc. In the case of creating a system from scratch, all these algorithms require description and software implementation.

ADE Professional Solutions offers a unique solution: IBM Cognos Controller.

IBM Cognos Controller — software for preparing consolidated financial statements, the history of which dates back to 1969.

IBM Cognos Controller de facto is the industry standard for consolidation automation in Europe and has firmly taken one of the leading positions in Russia.


IBM Cognos Controller features:

Flexible full-featured system, versatile and functional, devoid of the disadvantages of MS Excel: such as lack of access control and collaboration, possibility of information loss, etc.
Easily scalable, allowing you to change the structure of the holding, grow, and increase functionality using other IBM Cognos products
Setup of the program does not require the involvement of programmers and other specialists in the field of information technology
Meets Sorbannes-Oxley reporting process requirements
Short period of installation and setup. Project duration is much shorter than a ERP installation

Some functional advantages of IBM Cognos Controller:

Simultaneous user access to the system
Multilingual interface support: each group company can have its own language configured
Automatic checks allow you to monitor the integrity of data, identify and eliminate errors when entering information. Built-in checks can be used, and additional checks can be created
Logging of all changes to structures and data made by users or automatic procedures
The status of each group company is monitored in real time
Multicurrency, automatic translation according to various rules
Data management in accordance with accounting principles
Extensive adaptability to different accounting policies, flexibility and scalability
Multiple options for entering and loading data allows you to stage-by-stage separation of labor-intensive integration process, applying different options for different companies
Transformational amendments are made by double entry on accounts with automatic balance control. It is possible to transfer and copy amendments between periods, companies, and versions
Management of built-in directories:
  • chart of accounts - the main structure for storing information in the context of the required analytics;
  • the structure of the group companies allows you to form one or more types of consolidation in the system and obtain independent financial results for them;
  • multi-version data allows you to combine the elements of the system to obtain the result for several scenarios
The procedure for reconciliation of intragroup transactions (IGO) is carried out within the system:
  • when entering IGO data into special accounts, the belonging of the values to the companies of the group is indicated;
  • the approach to reconciliation of IGO can be centralized or decentralized depending on the procedure adopted by the group;
  • automatic elimination correction according to IGO
The system contains a large number of automatic pre-configured consolidation adjustments and processes:
  • elimination of IGO and investments and capital. Consolidation by the equity method, calculation of minority interests, calculation of deferred tax, calculation of translational reserve, etc.;
  • automatic adjustments take into account cross and cross ownership, currency conversion discrepancies, and correctly reflect acquisitions, transfers or disposals of interests in companies;
  • the functionality of creating your own automatic amendments is available (for example, for VAT rollback, elimination of deferred tax according to RAS);
  • distribution (allocation) of values across the income statement accounts;
  • formation of calculated values on the account using data on other accounts (for example, if it is necessary to get the difference on the balance sheet account between the balance at the end and the balance at the beginning of the period on the account for ODDS)

Our clients

Rosseti

PJSC «Rosseti» is an operator of energy networks, one of the largest power grid companies in the world. Consolidated financial statements in accordance with IFRS are prepared four times a year for the Group, which includes about 90 subsidiaries and affiliates. More than 120 users take part in the preparation of reports.

ADE Professional Solutions has implemented an automated IFRS consolidated reporting system based on IBM Cognos Controller. The system functionality is used to collect financial information, reconcile intra-group transactions, monitor the preparation process and automatically calculate consolidation adjustments in the context of the Group's constantly changing ownership structure. We have been providing ongoing technical support to the system for over 5 years.

Magnitogorsk Iron and Steel Work

Magnitogorsk Iron and Steel Works is one of the largest steel producers and holds a leading position among Russian ferrous metallurgy enterprises. The group includes more than 110 companies with various functional currencies.

The implemented IFRS reporting system based on IBM Cognos Controller allows 10 users to monthly prepare IFRS financial data in two reporting currencies and issue reports 4 times a year.

We have set up system functionality for conversion transformations, import of data from external accounting systems and external modules for calculation of transformation corrections. We have been providing ongoing technical support to the system for almost 5 years.

RusHydro

The RusHydro Group unites more than 60 hydroelectric power plants in Russia, thermal power plants and power grid assets in the Far East, as well as energy sales companies and research and design institutes.

Thanks to the IBM Cognos Controller system implemented by ADE Professional Solutions, we have moved from a manual method of generating consolidated IFRS statements to automating the process of collecting primary information, forming transformational amendments and consolidating the Group of more than 160 legal entities.

Baiterek

«Baiterek» is a financial holding company owned by the Government of the Republic of Kazakhstan used for corporate management of 18 subsidiaries - the largest banking, financial and infrastructure enterprises of the Republic.

ADE Professional Solutions implemented IBM Cognos Controller to consolidate reporting at the holding level. Automation has improved the quality, timing and security of financial data used for reporting.

NOVATEK

PJSC «NOVATEK» is the largest independent producer of natural gas in Russia.

IBM Cognos Controller, with the help of ADE Professional Solutions, was integrated with other IBM Cognos family programs and became a link for preparing consolidated IFRS statements. The deep harmonization of the handbooks has significantly reduced the preparation of the Group's consolidated statements.

Due to the simplicity of the software, the system is operated in-house by «NOVATEK».

Swiss Krono

LLC «SWISS KRONO» is part of the Swiss group of companies SWISS KRONO Group, which includes ten enterprises in eight countries: Switzerland, Germany, Poland, Russia, Ukraine, USA, France and Hungary. The parent company uses the IBM Cognos Controller system for reporting. ADE Professional Solutions has trained employees to use the system and provides consulting support during reporting periods.

Rocla

The company Rocla RUS is part of the Finnish company Rocla's own dealer network, which produces modern equipment for warehouse logistics. Rocla uses the IBM Cognos Controller system to prepare consolidated statements and a consolidated IFRS budget. ADE Professional Solutions provided user training and advice on issues related to the operation of the system.