ifrs_sap

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SAP Ecohub Webinar Series:

The SAP Roadmap for

IFRS Compliance

Pete GrahamDirector Solution Management, SAP

James FisherSenior Director, Solution Marketing, SAP

8/6/2019 IFRS_SAP


A brief overview of IFRS and its implications

A few comments from SAP regarding IFRS

SAP ERP and IFRS adoption overview

SAP BusinessObjects and IFRS adoption overview

Wrap-up

Agenda

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Wrap-up

Agenda

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What is IFRS?

International Financial Accounting Standards

Global wide standard for financial accounting and reporting

Currently in use in most of the world

– Europe, Japan, Australia, China, etc.

– Other countries are in the process of changing from local GAAP to International Financial ReportingStandards (IFRS)

How it affects you — Key deadlines US SEC has ―proposed‖ a deadline of 2014

Some companies have the option reporting in the IFRS format as early as the end of 2009

Dual Reporting begins in 2012

Requires re-statement of opening 2012 Balance Sheet to IFRS standards

IFRS cutover from Local GAAP to IFRS is 2014

– Local GAAP reporting requirements will not go away

– Some industries will still require Local GAAP reporting – Utilities, Oil and Gas — FERC reports remain US GAAP

Other key points to consider

The IFRS ―answer‖ will be specific to your company, industry, and country

– ―One size fits all‖ does not apply for IFRS

Prior planning including your consulting/audit partner and SAP is essential for success

Key Points — IFRS Adoption

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Are There Any Benefits to IFRS?

Improved quality of reporting A globally accepted set of principles-based standards may offer opportunities to consistently apply accounting

standards

Improved transparency and investor confidence As use of IFRS becomes more widespread, the new standards will increase comparability for investment analysis

and performance measurement

Reduced accounting complexity US GAAP accounting rules are viewed as complex and diff icult to apply IFRS in based on ―principles‖ not rules which will provide the opportunity for more clear representation of financial

results

Potential process and cost efficiencies The same financial reporting standards across the world will provide opportunities to simplify and centralize

financial reporting processes and functions

Cost of capital A single global financial reporting standard will enhance the efficiency of capital allocation and should reduce the

cost of capital

Process and technology optimization *** Converting to IFRS may provide an opportunity to improve and streamline key components of the current SAP

landscapes

*** System Upgrades and GL Migration Projects

SAP and our Partners see these benefits

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Key IFRS Challenges

IFRS implementation is not only a reporting project. There are significant impacts on:

Company organization — Both corporate and subsidiary levels

Valuation of individual business transactions

Transactional systems — May need software and hardware upgrades

End User Training – More than expected

Approaching key deadlines

Early project planning and analysis leads to successful project

Parallel reporting

Need to run parallel reporting to enable prior year comparisons between the Local Accounting Standardand IFRS during the transition periods

Need the ability to easily compare, reconcile, and explain the differences / changes between the LocalAccounting Standards and IFRS

Broad implications

Implementation requires cross-functional team — Financial accounting, management accounting, tax, IT,

Consulting Partners, and SAP Services New closing process required to include additional new IFRS-specific information without increasing closing

cycles

Transaction changes

Top-side adjustments at a consolidation level may not always be sufficient to meet all IFRS requirements— Some changes may be appropriate at the SAP ERP / transactional level

Need to capture additional data / information to meet extensive disclosure requirements

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Potential Impact of IFRS on an SAP Landscape

From Ernst and Young

FI - Financial

CO - Controlling

AC – Asset Accounting

PS – Project Systems

HR – Human Resources

PP – Production Planning

MM – MaterialManagement

PM – Plant Maintenance

QM - Quality Management

SD – Sale andDistribution

Possible ImpactNeed to investigate to determine magnitude

SAP modules Process Areas

Manufacturing industry example

Purchasing Depreciation Sales Tracking

Make to Order Plant Shut Down Third Party Billing

General

LedgerBook Close

Accounts

Receivable

Accounts

PayableTax Consolidations SPL

Cost Element Cost Center Profit Centers Internal Orders ABC Costing Product Costing

Requisitions Purchase Orders Good ReceiptsInventory

ManagementBill Of Materials

Master rawmaterials

Employment History Payroll Training Career Management

Labor Material Down time and outages

Capacity PlanningMaterial requirements

planningShop Floor

Planning Executions Inspections Certificates

RFQ Sales Orders Pricing Picking Packing Shipping

Masterproduction scheduling

Slide from Ernst & Young

8/6/2019 IFRS_SAP


IFRS Impacts to Our Clients – Industry Insights

From Accenture

OG IndustryLevel ofImpact

Key Drivers

Products

CGS H Inventory, PP&E, Raw Material Hedges

Airline M Extensive use of leases, fuel hedges, PP&E

Industrial

Equipment

M Revenue recognition – project accounting, LIFO reserves, PP&E

Retail H Leases, Asset Impairment (Store closures), PP&E, Inventory, Revenue Recognition, Taxes

Travel M PP&E, Advertising, Leases

HLS HBusiness Combinations, Intangibles (R&D), Asset Impairment, Inventories, PP&E, Contingencies andProvisions (Product Liability)

Automotive HIntangibles (R&D), Inventories, Asset Impairment, Restructuring, Contingencies and Provisions (LossContracts and Restructuring)

FinancialServices

Banking H Financial Instruments, derivatives, Asset-backed Securities

Capital Markets M Financial instruments, Derivatives, Advertising, Customer Loyalty Programs

Insurance H Insurance Contracts, Financial Instruments, Revenue Recognition, Financial Disclosure Reporting

More research is required but our hypothesis is that certain industries will be impacted more than others due to IFRS.

Slide from Accenture

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IFRS Impacts to Our Clients – Industry Insights

From Accenture (cont.)

OG Industry Level ofImpact

Key Drivers

Resources

Forest Products L LIFO, PP&E, Real Estate, Leases

Freight-Logistics L PP&E, Leases

Metals L PP&E, LIFO

Mining M PP&E, LIFO, Leases, Revenue Recognition – project accounting, real estate

Utilities H PP&E, Intangibles, Asset Impairments, Derivatives (hedges), Leases, Provisions, Taxes, BorrowingCosts

Chemicals M PP&E, R&D, Environmental Provisions, Impairment Testing, Joint ventures LIFO reserves

Energy H PP&E, Depletion Accounting, Joint Ventures, Business Combinations, Intangibles (R&D), Reserves,Revenue, Taxation, Environmental Liabilities, Derivatives

Building Materials L LIFO, PP&E, hedges

CHT

Media andEntertainment

L Intangible Assets – impairment testing, Revenue Recognition – multiple element arrangements,PP&E

Communications M PP&E, Leases, Impairment Testing, Revenue Recognition, R&D, Advertising, Customer LoyaltyPrograms

Aerospace and Defense M PP&E, Impairment Testing, LIFO, R&D, Derivatives, Revenue Recognition – project accounting

Electronics and HighTech

H R&D, Revenue Recognition – multiple element arrangements, Asset Impairment

Slide from Accenture

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Wrap-up

Agenda

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Why is SAP the best choice for IFRS?

SAP offers the most complete IFRS solution, addressing all facets

IFRS is more than an accounting issue - it impacts people, processes, and technology

SAP provides a single technology stack with support for all major architectures

A smooth phased transition to IFRS must leverage technology as an enabler

SAP provides market leading, integrated ledger and consolidation applications

Impacted systems include financial consolidation and reporting applications,general ledger, and sub-ledgers

Proven install base of customers already reporting according to IFRS

800+ financial consolidation and reporting implementations

4,000+ general ledger implementations (includes 100+ US GAAP to IFRS conversions)

Agile solutions and content offer quickest wins for customers adopting IFRS

Phased Transition to IFRS Financial Consolidation and Reporting General Ledger Sub-ledgers

Technology

People

Process

http://images.google.com/imgres?imgurl=http://www.terrapinlogo.com/images/tick-tock%2520clock.JPG&imgrefurl=http://www.terrapinlogo.com/newsletters/vol2_no2.htm&usg=__k1-rFbU7Kflx_AEP98RXselVVXI=&h=399&w=451&sz=23&hl=en&start=4&tbnid=NKQ8EQDuBYYM3M:&tbnh=112&tbnw=127&prev=/images%3Fq%3Dclock%2Bticking%26gbv%3D2%26hl%3Den

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SAP and IFRS Compliance

Solutions and Services

Local Close/Transaction SAP ERP Layer SAP General Ledger

– Parallel Account with multi-ledgers

Asset Accounting

– Multi-Asset Valuation Areas

Etc.

Group Close/Reporting/Consolidation Layer

SAP BusinessObjects

– SAP BusinessObjects Planning and Consolidation

XBRL Publishing application

Etc.

SAP Services SAP Field Services

SAP General Ledger Migration support service

SAP Service Landscape Optimization (SLO)

Upgrade Support and Service

Partner Alliances

Strong relationship with our Global Partner and Ecosystem Organization

Standard SAP Applications, SAP Services, and our Partners can provide

the necessary support for your IFRS Project

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For Example SAP’s own IFRS Project

Looked like this …

Adoption

of IFRS

@

Provides guidance and training Provides posting infrastructure

Performs certain reconciliationpostings for all company codes

Share-based payments and relatedhedge entries

Collects data for disclosures (viaexpanded reporting package)

Supports identification of IFRS/US GAAP differences

Decides accounting for major openitems

Corporate Financial Reporting

Identify reconciling items (i.e.,differences IFRS/US GAAP)

Perform all reconciliation postingsexcept those performed by CFR

Bring open issues to the attention ofregional IFRS Specialist

Complete expanded reportingpackage and provide certification onaccuracy and completeness ofreconciling entries and disclosures

Support KPMG‘s audit

Collect all ambiguous issues fromindividual entities in the respectiveregion

Provide guidance to solveambiguous issues

Discuss complex issues with CFR(single point of contact in CFR foreach IFRS Specialist)

Audit

– IFRS opening balance sheet

– IFRS reconciliation 2006

– IFRS reconciliation 2007 andbeyond

– IFRS consolidated financialstatements 2007 and beyond

Organization

Personnel

Processes

Technology

Local SAP Entities

Regional IFRS Specialists Consulting Partner (KPMG)

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Reconciling U.S. GAAP to IFRS Operating

Income for HY1 2009 (€ millions)

Valuation

differences

Classification

difference

U.S. GAAPoperating

income979

IFRSoperating

income948

Discontinued

operations-6

Restructuring-12 Other

-6

Acquisition re-lated charges-8

-31

Differences may exist due to rounding

8/6/2019 IFRS_SAP


2009 2011 2012 2013

Begin IFRS Project Planning and LocalImpact to Determine SAP Landscape

Solution Required

Prepare OpeningBalance Sheetunder IFRS rules

Dual ReportingPeriod Ends

IFRS Go-LiveDate

2014

Begin configurationLandscape for IFRS

a. Transaction Layer

b. Reporting Layer

SAP GeneralLedger MigrationCompleted 1st

Qtr 2010

SAP GeneralLedger Validation

Periodcompleted byYear End

2010

UpgradeProject to SAPERP 6.0Completed

SAP General

LedgerMigrationProject

Dual Reporting Period Go-Live IFRS

Possible SystemLandscapeOptimization (SLO)Projects to clear

Local GAAPIssues

SAP Field Services + Customer – SAP ERP Layer

Begin IFRSProject

Consulting/Audit Partner, Customer + SAP Field Services

Go-Live with IFRS as primary group reporting standard

Perform consolidation reporting in both the local accounting standard and

the IFRS systems

Review Existing consolidations

and XBRLcapabilities

Adapt the current or deploy a new consolidation

application for group reporting

Go-Live with new or updated consolidation

capabilities

SAP Field Services + Customer – Reporting/Analytical Layer

IFRS: Implementation Timeline –

Overview Recommendations (US Timeline)

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Typical Questions

Does SAP consider the implementation of IFRS a significant project? Yes, we do

The complexity of your project will be driven by your industry, company, and even country

Your current landscape status will also play a role in the complexity of your specific project

System upgrades

SAP General Ledger migration projects

SLO projects Your IFRS project will require input and guidance from

Your consulting/audit partner

SAP Services

You own internal experts

Is there a single best solution for IFRS?

No, sorry

The best solution for your company will be the result of a thorough review of your current statusand the overall impact on your company when adapting to IFRS

Some Frequently Asked Questions

SAP’s View of IFRS

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SAP’s View of IFRS (cont.)

Typical Questions

What type of support can I expect from SAP during this project? SAP will provide application support for our products

Basically we can help with basic configuration/consolidations and reporting help

For correct interpretation of the IFRS rules and guidelines it is best you work with your consultingpartner

What is the first step I should take to begin this IFRS project? SAP would suggest you contact both your consulting/audit partner and SAP for guidance and

preliminary planning

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Wrap-up

Agenda

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2009 2011 2012 2013

Begin IFRS Project Planning and LocalImpact to Determine SAP Landscape

Solution Required


Dual ReportingPeriod Ends

IFRS Go-LiveDate

2014

Begin configurationLandscape for IFRS

a. Transaction Layer

b. Reporting Layer

SAP GeneralLedger MigrationCompleted 1st

Qtr 2010

SAP GeneralLedger Validation

Periodcompleted byYear End

2010

UpgradeProject to SAPERP 6.0Completed

SAP General

LedgerMigrationProject

Dual Reporting Period Go-Live IFRS

Possible SystemLandscapeOptimization (SLO)Projects to clear

Local GAAPIssues

SAP Field Services + Customer – SAP ERP Layer

Begin IFRSProject

Consulting/Audit Partner, Customer + SAP Field Services

Go-Live with IFRS as primary group reporting standard

Perform consolidation reporting in both the local accounting standard and

the IFRS systems

Review Existing consolidations

and XBRLcapabilities

Adapt the current or deploy a new consolidation

application for group reporting

Go-Live with new or updated consolidation

capabilities

SAP Field Services + Customer – Reporting/Analytical Layer

IFRS: Implementation Timeline –

Overview Recommendations (US Timeline)

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Options for SAP Solution Configuration

Approaches available for multi-GAAP valuation within SAP ERP Financials

Approach Classic SAP GeneralLedger

Account Based Easiest to implement

Can lead to a less than efficientChart of Accounts

Parallel Ledger Most transparent approach

Independent set of books Future IFRS requirements more

easily accommodated

Current recommended configuration approaches for SAP General Ledger

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Parallel Ledger Approach – Scenario 1

Applies to SAP General Ledger only

Why it Works

Provides IFRS and Local Accounting Standard reporting from multi-ledgers

Can be configured to meet both reporting requirements from the first go-live date

Utilizes the best features of the SAP General Ledger

Document Splitting

Segment Reporting

Etc.

Recommended option of complex installations

Large differences between IFRS reporting standards and the current legal reporting

standard Feeds properly formatted IFRS data directly into the Reporting and Analytics

layer

Simplifies reporting and requires little manual adjustment after consolidations

Implementation from the beginning of fiscal year

Matches IFRS time line

Parallel Ledger Configuration is recommended where Segment reporting is required

Increased number of Ledger accounts is not desirable

Complete set of separate legal reporting books is preferred

Different fiscal year is needed for different legal sets of books

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Account Based Approach – Scenario 2

Can Be Used Across All GL Versions

Account Solution is recommended where

Relatively few valuation differences exist between IFRS and local GAAP

No issue with an increased number of general ledger accounts

Standard reporting is used

Different fiscal years not required

How it works

Uses single ledger for all posting

Could be the Leading Ledger for SAP General Ledger

Accounts are ―grouped‖ according to legal reporting requirements

Example

300000 to 400000 Operational Chart

500000 to 550000 IFRS

600000 to 650000 Local GAAP

Each group of accounts must be in balance

Requires extra care to ensure correct account determination

And the establishment of a coding handbook.

IFRS Financial Statements report using common accounts and ―pure‖ IFRSaccounts together

Red Oval in diagram

Single Ledger

GAAPAccounts

IFRSAccounts

Common

Accounts

I

FRS

GAA

P

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Typical Questions

Do I have to upgrade to SAP ERP 6.0 and install the SAP General Ledger to meet the IFRSrequirement?

No, you can meet the IFRS requirements without an upgrade or the installation of the SAP GeneralLedger

However, the adoption of IFRS would be much easier in most cases with the most currentsoftware release installed

I have just upgraded and installed the SAP General Ledger and my Leading Ledger and AssetValuation area are set to Local GAAP. How can I make the switch to IFRS?

In this instance we would suggest using Parallel Ledgers within the SAP General Ledger

A combination of the Leading Ledger and Non-Leading Ledgers would be used to report bothLocal GAAP and IFRS

SAP has several services that will help make the switch from Local GAAP to IFRS within the LeadingLedger and Asset Valuation area.

For the SAP General Ledger, a new migration scenario (7) is under development For the Asset Valuation area, an SLO service will be required


SAP ERP Financials

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Typical Questions

What is the difference between the Account Based approach and the Parallel Ledger approach? The Account Based approach holds all legal reporting data in a single ledger

Is suggested for smaller sized installations with minimal differences between Local GAAP andIFRS requirements

Will add additional account numbers to the Chart of Accounts

The Parallel Ledger approach distributes legal reporting data to separate parallel ledgers

Is suggested for larger installations with significant differences between Local GAAP and IFRSreporting

May require a separate table groups for separate ledgers

If I plan to upgrade to SAP ERP 6.0 and migrate to the SAP General Ledger when should I startplanning the project?

In this example the time is NOW!

Overall we see an upgrade followed by a migration project to take at least a year. Followed by the reporting validation period after the migration weekend and the IFRS planning

project would take another year.

Which will take 2 years for the upgrade/migration and first phase of the IFRS project


SAP ERP Financials (cont.)

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Wrap-up

Agenda

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© SAP 2009 / Page 25

Begin IFRS Project Planning and LocalImpact Determine SAP LandscapeSolution Required


Dual Reporting

Period Ends

IFRS go livedate

Begin configurationLandscape forIFRS

a. TransactionLayer

b. Reporting Layer

SAP GLMigrationCompleted 1st

Qtr 2010

SAP GLValidation Periodcompleted byYear End

UpgradeProject to ERP6.0 Completed

SAP GeneralLedgerMigrationProject

Dual Reporting Period

SAP Field Services + Customer – ERP Layer

Begin IFRSProject

Audit Partner, Customer + SAP Field Services

Go Live with IFRSas primary groupreporting standard

Perform consolidationand reporting under bothexisting GAAP and IFRS

standard

Review existingconsolidationand XBRL

systems forIFRS suitability

Adapt currentsolution or deploya new application

where necessary

Go Live with newor updatedconsolidation

capabilities

SAP Field Services + Customer – Consolidation and Reporting Layer

Implementation timeline (US)

Overview and recommendations

2009 2010 2011 2012 2013 2014

Go Live IFRSwith possibleSLO projects toclear LocalGAAP Issues

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Technology challenges for group financial

reporting in IFRS

Parallel reporting

Top-side adjustments

Consolidation engine and business rules

Disclosures and commentary

Ease of report writing

Integration with source systems

Interactive data (XBRL)

Automated internal control processes

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reporting in IFRS

Parallel reporting (multi-GAAP)

Data should all be held in a singledatabase with minimal or no duplication

Sufficient mechanisms to categorize theinformation

Dimensionality

Hierarchical views

Structures

Currencies

IFRS specifics

Segregation of financial assets &liabilities between listed/unlisted

Debtors/issuers analyses for securities

Derivative instruments and types ofhedging for derivatives assets &liabilities

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reporting in IFRS


Ability to perform complex calculations, to perform andstore multiple consolidations, and to report in differentformats

Hold the data in local GAAP

Create journal entries to produce the required reportsfor IFRS (or vice versa)

Automate the calculation and storage of as many ofadjustments as possible

Comprehensive audit trail

IFRS consolidation adjustments

Reconciliation between historical GAAP and IFRS duringtransition period

Ideally should be ―built-in‖ to the application

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reporting in IFRS

Consolidation engine and business rules

Ability to easily process changes in groupstructure

Acquisition

Disposal

Internal merger

Changes in

Interests

Consolidation rate

Consolidation method

IFRS impacts the definition of the groupstructure

Proportional method etc.

Should be configurable by financial users

New compliance rules require deeperdocumentation of consolidation processesfor the financial community

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reporting in IFRS

Disclosures and commentary

Need the ability to add cell-basedcomments

Native text reporting

Contextual and secure documentattachments

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reporting in IFRS

Ease of report writing

Need to produce reports in more than oneformat during the transition phase

Reconciliation reports

Local GAAP to IFRS

Prescribed formats for IFRS reporting aredifferent from those in local GAAP

IAS 7 (Cash Flow Statements) does not requirereconciliation of net cash flow to movement innet debt

Ability to assign different names to a singleaccount

IAS 1 requires different balance sheetheadings to those currently used under localGAAP

Stock = Inventories

Fixed Assets = Property, Plant, and Equipment

Flexible and powerful end-user reportingcapabilities that enable the head officeconsolidation team to create and changetheir own reports

f f

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reporting in IFRS

Integration with source systems

Integration between EPM applications andunderlying systems is crucial

Provide adaptability and flexibility as sourcesystems also transition to IFRS

Single-instance ERP or general ledger (GL)is not always possible

Avoid flat files or manual data entry

Instead, look to establish direct links

Speed the loading process

Avoid costly mistakes

Financial information management softwarecan provide

Business user mapping

Drill back to origin

Full audit trail

T h l h ll f fi i l

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reporting in IFRS

Interactive data (XBRL)

Recently mandated for public companiesoperating in the U.S. to begin filing theirfinancial reports using XBRL

Three-year timetable

Largest 500 filers for fiscal periods ending on orafter June 15th, 2009

All other large accelerated filers in 2010

All remaining companies in 2011

XBRL publishing will be an important facet ofthe IFRS transition process

Many experts believe XBRL will help with thetransition to IFRS

Finalized IFRS taxonomy anticipated beforeand final IFRS ruling

However the XBRL publishing mandateremains separate and distinct from IFRS

Considering XBRL publishing requirementsfrom the outset will make the IFRS transitionprocess easier and reduce maintenance oncethe transition is complete

T h l h ll f fi i l

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reporting in IFRS

Automated internal control processes

Embed into financial consolidation andreporting process

Replace manual controls

Meet compliance mandates in a timely andcost-effective fashion

Optimize operational efficiency

GRC applications provide a risk-basedapproach

Reduce overall cost of compliance

SAP B i Obj t l ti t IFRS

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SAP BusinessObjects solutions support IFRS

Financial consolidation and reporting solutions from SAP

BusinessObjects are fully IFRS capable Thousands of successful IFRS implementations in EMEA

Key functionality to support IFRS is available today:

Parallel reporting


Rules-based environment

Disclosures and commentary Flexible and powerful reporting

XBRL publishing

Starter kits speed and smooth the transition process

Provide pre-configured IFRS compliant content

Comprehensive compliance Documentation, automated testing and reporting of internal controls in

accordance with SOX 404 and 302

Deep integration into underlying transactional and GL systems

Including SAP ERP, SAP Business Suite, and SAP NetWeaver BW

Applications remain heterogeneous and open to non-SAPenvironments

SAP B i Obj t C lid ti S l ti

8/6/2019 IFRS_SAP


Data entry and validation

Intelligent checks and filtering

Consistent, complete, and commented

High performance

Simultaneous, parallel consolidation processing

Must not compromise on audit trail

Process automation

Built-in rules logic to automate entries

Multiple reporting channels

Retain past frameworks

Ease of use Web and Microsoft Office

Workflow and process monitoring

Owned and managed by business users

SAP BusinessObjects Consolidation Solutions

Eliminate Bottlenecks for a Faster Compliant Close

St t kit

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Fast implementation

Pre-packaged content reduces implementationtimes by up to 80%

Dynamic configuration enables easycustomization to specific requirements

Complete, generic reference implementation

Rapid and trusted legal compliance

Embedded expertise in meeting financialregulations including best practice in financialconsolidations and internal controls

Detailed process guidance for business users

Comprehensive scope

IFRS/GAAP specific chart of accounts

Pre-configured IFRS/GAAP consolidation rules,controls, and calculations

Publishable financial statements

Starter kits

Faster legal compliance – reduce implementation times

SAP BusinessObjects XBRL Publishing by UBmatrix

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Speed

Quickly navigate taxonomies and map data

Easy to use drag-and-drop mapping environment

Fast, thorough validation of generated XBRLdocuments

Simplicity

Works with EPM solutions and SAP Business Suite

Link to and import disclosures stored in Microsoft Word

Insulates users from dealing with complex XBRL syntax

Flexibility

Easily extend published XBRL taxonomies

Complies with the XBRL 2.1 specification

Supports basic and block‐text footnotes, dimensions,and business rules

SAP BusinessObjects XBRL Publishing by UBmatrix

Streamlining XBRL publishing for business users

SAP BusinessObjects

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Ease of use for finance users

Business users maintain sophisticated mappingsand launch loading tasks

Secure access to dimensional metadata, intelligentchecking and filtering of data

Simple to use and easy to deploy

Compliance, trust, and reliability

Fully automated and easily accessible audit trail

Drill-back allows tracing of consolidated resultsback to the original sources

Comprehensive validations ensure error prone datais loaded right-first-time

Connectivity to SAP and non-SAP sources

Application connectivity removes the need forintermediate flat files or manual re-keying of data

Database connectivity ensures almost any sourcecan be integrated with a full audit trail

Rapid Marts speed implementation

SAP BusinessObjects

Financial Information Management

Powerful connectivity, mapping, and loading designed for business users

SAP BusinessObjects Process Control

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Implement operational controls to improvebusiness process management

Unify control environment across the enterprise

Manage by exception and perform timely remediation

Enforce accountability with hierarchical review,certification and sign-off process

Reduce cost without compromising compliance

Automate controls with ―out-of-the-box‖ control scripts

Simplify integration across process andapplication boundaries

Streamline manual testing and assessments

Shrink audit cycles with rigorous compliance process

Enable lines of business to effectivelymitigate risks

Integration with other applications for effective mitigationof enterprise business risks

Role-based dashboards to monitor control activity status

End to End, Cross Enterprise Business Process Control

SAP BusinessObjects Process Control

SAP BusinessObjects customers have

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The journal entries generated by the rules-based SAP BusinessObjects application

provide an exact audit trail as we reconcile the data for both Canadian reporting

purposes and IFRS standards. It makes it much easier to show both auditors and

company management exactly what we’ve done…”

Neil Thompson, Manager of Financial Systems, Standard Life

SAP BusinessObjects customers have

successfully transitioned to IFRS

SAP BusinessObjects software has helped thousands

customers successfully transition from local GAAP toIFRS reporting

In parallel, our consolidation applications have also

helped customers significantly reduce closing cycles

Diageo went from 12 days to 5 days after replacingHyperion Enterprise

Reporting time reduced from 20 to 5 workdays at Roche

with HQ consolidation time cut from 12 to 2 days

Recticel reduced reporting time from 20 days to 15 days

―

Agenda

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SAP ERP and IFRS adoption overviewSAP BusinessObjects and IFRS adoption overview

Wrap-up

Agenda

Where to find more information?

8/6/2019 IFRS_SAP


Where to find more information?

Read our IFRS whitepaper:

http://www.sap.com/solutions/sapbusinessobjects/large/enterprise-performance-management/planningandconsolidation/index.epx

Join the Business Process Expert (BPX) Community:

For sharing IFRS on SAP knowledgehttps://www.sdn.sap.com/irj/bpx/ifrs

Contribute to IFRS on SAP Ideas, Best Practices,Tips and Tricks -https://wiki.sdn.sap.com/wiki/display/IFRS/IFRS+on+SAP+-+Best+Practices

Listen to the IFRS Webinar Series on SAP Ecohub

http://ecohub.sdn.sap.com/irj/ecohub/home?rid=/hub

/uuid/6019e662-4a58-2c10-91a9-a13e06f6135b

Includes upcoming webinars and recordings of pastwebinars

sdn.sap.com/irj/bpx/ifrs

IFRS@BPX

IFRS on SAP Community:




https://www.sdn.sap.com/irj/bpx/ifrs

https://wiki.sdn.sap.com/wiki/display/IFRS/IFRS+on+SAP+-+Best+Practices


http://ecohub.sdn.sap.com/irj/ecohub/home?rid=/hub/uuid/6019e662-4a58-2c10-91a9-a13e06f6135b























8/6/2019 IFRS_SAP


IFRS on SAP Community:

sdn.sap.com/irj/bpx/ifrs

Get your questionsanswered on theIFRS Forum …

… at …

https://www.sdn.sap.com/irj/scn/forum?foru

mID=400

Have an idea? Write

a blog

Summary


https://www.sdn.sap.com/irj/scn/forum?forumID=400







8/6/2019 IFRS_SAP


Summary

IFRS is coming and organizations need to

understand the issues, assess the impact,and find solutions

Despite apparent reticence, IFRS is hasmomentum and is inevitable – don’t fight it or

bury your head in the sand

Don’t leave it too late – it’s easier to collect

comparative information as it happens ratherthan 2 years after the fact

Plan for change – you don’t know what all the

changes will be, but you know there’ll be some

Short term solutions are expensive and dissolveROI from other important projects (fast close,

systems integration etc.) Treat IFRS as an opportunity – use it to review

and improve your financial consolidation andreporting systems

SAP solutions fully support the transition to IFRS

Transition to IFRS Financial

Consolidationand Reporting

GeneralLedger

Sub-ledgers

Technology

People

Process

8/6/2019 IFRS_SAP


Thank you!

Pete Graham

[email protected]

How to contact me:How to contact meHow to contact me

Philip [email protected]

James Fisher

[email protected]

Webinar Replay and Other IFRS on SAP Webinar

SAP Contact Slide

8/6/2019 IFRS_SAP


SAP Contact Slide

SAP ERP Financials — Pete Graham [email protected]

SAP BusinessObjects — James Fisher [email protected]

Philip Mugglestone [email protected]

SAP Field Services — Joe Svoboda [email protected]

Mark Lombard [email protected]

SAP SLO Services — Enis Akgerman [email protected]

Copyright 2009 SAP AG

mailto:[email protected]












8/6/2019 IFRS_SAP


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