oracle ifrs overview v41
TRANSCRIPT
ltInsert Picture Heregt
Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)Presenterrsquos NamePresenterrsquos Title
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Global Momentum Towards IFRS
Source IASB Dec 2007
Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs
Expected Benefits from IFRS Convergence A single standard for global business
More efficient access to capital
Reduced cost of financial reporting
Improved transparency for
investors
Itrsquos Not About Accounting Itrsquos About Capital Markets
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesProposed implementation timeline from the SEC
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Global Momentum Towards IFRS
Source IASB Dec 2007
Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs
Expected Benefits from IFRS Convergence A single standard for global business
More efficient access to capital
Reduced cost of financial reporting
Improved transparency for
investors
Itrsquos Not About Accounting Itrsquos About Capital Markets
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesProposed implementation timeline from the SEC
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Global Momentum Towards IFRS
Source IASB Dec 2007
Countries seeking convergence with the IASB or pursuing adoption of IFRSsCountries that require or permit IFRSs
Expected Benefits from IFRS Convergence A single standard for global business
More efficient access to capital
Reduced cost of financial reporting
Improved transparency for
investors
Itrsquos Not About Accounting Itrsquos About Capital Markets
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesProposed implementation timeline from the SEC
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Expected Benefits from IFRS Convergence A single standard for global business
More efficient access to capital
Reduced cost of financial reporting
Improved transparency for
investors
Itrsquos Not About Accounting Itrsquos About Capital Markets
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesProposed implementation timeline from the SEC
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesProposed implementation timeline from the SEC
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Companies are required to retrospectively apply IFRS to all periods presented as if
they had always been in effect
Cumulative Reporting Requirements
During the transition period from US GAAP to IFRS firms must continue to report in
US GAAP and any local statutories as well as begin tracking IFRS equivalents
Multi-GAAP During Transition
A study comparing of the impact of IFRS adoption in the UK reveals that net income
generally rose by 39 while equity declined by 23 UK GAAP is considered
close to US GAAP in most areas
Potential Impact on Bottom Line
Donrsquot Know 9
Within 3 years55
Within 7 years
8
Within 5 years26
Growing awareness of complex requirementshellip
hellipdrives preference for early planningand assessment
Impact on US CompaniesThe value of starting early
Sources European Financial Reporting Research Group Deloitte Touche Tomatsu
More than 7 years
2
ldquo No one anticipated how big it was going to be Every company was too late and too slow in preparing ndash even the good onesrdquo
Ken Wild Global IFRS Leader Deloitte
Within what timeframe would your company adopt IFRS if given a choice
Source Deloitte 2007
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
2009 2010 2011 2012 2013 2014 2015 2016
Impact on US CompaniesStart early for transition period with multi-GAAP
2009 Limited group of large US firms are permitted to use IFRS on an optional basis for fiscal periods ending on or after Dec 15 2009
2011 SEC evaluates achievement of roadmap milestones and decides whether to adopt a mandatory approach for IFRS
2014 Large accelerated filers begin filing in IFRS
2015 Accelerated filers to begin filing in IFRS
2016 Non-accelerated filers begin filing in IFRS
Source SEC Announcement Aug 2008
Transition DateWhile IFRS requires 2 years of comparatives best practice recommends 5
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
IFRS 2500 PagesUS GAAP 25000 Pages
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Much is the Samehellip
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition
Fair Market (eg AR or Inventory Valuation)
Detailed Disclosure
Segment Reporting
Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
hellipBut There are DifferencesUS GAAP is always more specific plus
Approach(Some Examples)
IFRS US GAAP
Fair Market Revaluation Fixed Assets amp Investments
Only Certain Fixed Assets
Extraordinary Items None Rare (Negative Goodwill)
Consolidation Control 2 Models
Joint Ventures Proportional OK Only Equity
Research amp Development Capitalized Expensed
Inventory No LIFO LIFO OK
Impairment 1 Step Reversible 2 Step No Reversal
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Industry-specific ConsiderationsAreas of Potential Concern
IFRS Change Area PPE RampD FV INV IMPAIR MampA
Financial Services
High Tech
Retail
Communications
Utilities
CPG
Life Sciences
PPE = Property Plant amp EquipmentRampD = Research amp DevelopmentFV =Fair Market Revaluation
INV = InventoryIMPAIR = ImpairmentMampA = Mergers amp Acquisitions
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Oraclersquos History with the IASB
bull Monitoring IFRS standards since 2000bull Active member of IASB ldquoIT Company Discussion Grouprdquo
ndash Attend the Standards Advisory Council (SAC) meeting three times a year
ndash Provide input on practicalityndash Get a heads up on features needed
bull National domain experts monitor Local GAAP
International Accounting Standards
Boardreg
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Communications Media Financial Services Consumer Technology
Energy Industrial Retail Life Sciences ServicesOther
Select Oracle Financial Management Customers12000+ worldwide with 25 in Europe
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
All Stages Apply Policy and Control Management
Determine impact on accounting in
subsystems
Configure accounting rules
and set up ledgers
Process and report using dual accounting
Milestone 3Transactions Recorded
in Multiple GAAPs
Stage 3Record
Transactions in both GAAPS
Milestone 1Completed Preliminary
Study
Stage 1Study Impact amp
Determine Strategy
Perform Preliminary Study
Assess Impact
Determine Strategy
Determine changes to
business model
Transform operations using
IFRS results
Report IFRS results increase
shareholder value
Stage 4Transform Your
Business amp Win with IFRS
Milestone 4Business Model
Optimized
Your IFRS Action PlanAchieve ldquoearly moverrdquo advantage
Collect GAAP financial results
Adjust and consolidate under
GAAP amp IFRS
Report reconcile and audit results
Milestone 2IFRS Reports Produced
Stage 2Enable Top End
Reports
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
Oracle Enables Key Stages in IFRS Action Plan
Stage 2Enable Top End
Reports
Stage 3Record
Transactions in both GAAPS
Stage 1Study Impact amp
Determine Strategy
Stage 4Transform Your
Business amp Win with IFRS
Oracle Enterprise Performance Management
Oracle ERP Financials
Other ERP Financials
Oracle Industry Specific
Applications
Oracle Governance Risk amp Compliance Suite
Custom or Legacy
All Stages Apply Policy and Control Management
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
DOCUMENT ATTACHMENTS
CORE CONSOLIDATION FEATURES
FLEXIBLE REPORTING
CUSTOM DIMENSIONS
GAAP IFRS
Flexible Rules Engine
Journal Entries and Audit
Enables tracking of GAAP vs IFRS adjustments
Multiple reporting standards in a single solution
Creates ldquoElectronic Binderrdquo of all adjustments
Easy to reconcile and trend GAAP vs IFRS results
Oracle Enterprise Performance Management Enable Top End IFRS Reporting
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
IASIFRS SUPPORT SINCE 2000Thousands of customers overseas
reporting under IFRS
ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
SPECIFIC IFRS FEATURESSpecific functionality developed for IFRS
IFRS MIGRATION PATHMultiple Ledgers or Multi-GAAP
IAS 2 Inventory Inventory CostingIAS 16 Property Plant FA ALMIAS 18 Revenue Rec OM AR BI CAIAS 21 Currency Multibook MRCGLMorehellip
Segments etchellip
Flex ChartFieldshellip
bull Asset ComponentizationParent amp Child AssetsChild Depreciation rates differ
bull Impairment ProcessingImpairment identificationUnplanned depreciation
Ledger SetCode
DifferencesExpanded COACalendarUSD
US PrinciplesExpanded COACalendarUSD
DUAL GAAP ACCOUNTING
GAAP
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
GRC DOCUMENTATION REPOSITORY
Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
COMPLIANCE WORKFLOW
Single subledger transaction creates multiple accounting representations
APPLICATION CONTROLS MONITORING COMPLIANCE DASHBOARDS
Automate steps to audit IFRS compliance
Record changes to business process due to IFRS
Control changes to ERP applications
Monitor status of testing and exceptions
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
IFRS Change Potential for Business Transformation
IFRS OK for SEC and for 60+ countriesrsquo statutories
bull Improve dramatically your reporting process consistency and management vision
bull Consider instance ledger data consolidation
bull Consider shared service accounting amp reporting centersIFRS book leases as liabilities
bull Consider buying that fleet of planes you use
bull Evolve your leasing revenue business to an equipment sales business
Capitalize RampD bull Move those 2009 Development expenses to the Balance Sheet ndash recognize in PampL matched to Revenue in 2010-2011
Transform Your Business amp Win with IFRS Going beyond compliance
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
ltInsert Picture Heregt
ldquoThere were fewer adjustments at the reporting unit level than we had expected and they tended to be relatively minor They mainly related to acquisitions intangibles leases and joint ventures Adjustments at headquarters were more significant and more complex and related to pensions share option expenses deferred tax and financial instruments Given this relatively straightforward framework the group was able to quickly establish a unified chart of accounts in Hyperion Financial Management covering UK GAAP US GAAP and IFRS It was then a simple matter to post the adjustments against these accounts as requiredrdquo
ldquoWe had total visibility of the process and could instantly see the effect of changes posted anywhere in the group Also if we needed to maintain the central modelmdashfor example to collect more datamdashwe could effect the change and it was immediately available throughout the group We could not have managed this so easily using our old business consolidation systemrdquo
Andrew MidgleyHead of Financial Reporting
Pearson
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
ltInsert Picture Heregt
Agenda
bull IFRS Overviewbull Oracle and IFRSbull Summarybull Q amp A
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
24
Key Takeaways
bull Use the benefit of a realistic implementation timeline ndashdonrsquot wait for the pressure of mandatory deadlines
bull IFRS resources are scarce ndash start planning and education sooner rather than later
Start Early
bull Report using IFRS principles with Oracle EPM
bull Push changes into general accounting with Oracle ERP Financials
bull Document and test IFRS controls with Oracle GRC
Leverage Technology
bull Consider how to optimize your business and gain competitive advantage through IFRS
bull Align your business model with the new capital market model
Optimize Your
Business
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
To Learn More
Webcasts
Upcoming PwC-Oracle IFRS webcasts (Dec 2008 - March 2009) wwwmeetpwccomOracleIFRSDec 9th on CFOcom with customer Pearson publisher of Financial Times httpwwwcfocomwebcastcfmwebcast=12500164amppcode=ORA120908_Oracle
Whitepapers
Preparing US Companies for the Transition to IFRS
Managing the Transition to IFRS
In Person Events
IFRS Briefings with PwC and Oracle httpwwwmeetpwccomIFRSNorCal
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-
- Slide Number 1
- Preparing US Companies for the Transition to International Financial Reporting Standards (IFRS)
- Agenda
- Global Momentum Towards IFRS
- Expected Benefits from IFRS Convergence A single standard for global business
- Impact on US CompaniesProposed implementation timeline from the SEC
- Impact on US CompaniesThe value of starting early
- Impact on US CompaniesStart early for transition period with multi-GAAP
- US GAAP vs IFRS Whatrsquos DifferentYou can make a living cataloging the differences
- Much is the Samehellip
- hellipBut There are DifferencesUS GAAP is always more specific plus
- Industry-specific ConsiderationsAreas of Potential Concern
- Agenda
- Oraclersquos History with the IASB
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Oracle Enterprise Performance Management Enable Top End IFRS Reporting
- ERP Products Designed for IFRSE-Business Suite PeopleSoft JD Edwards
- Oracle Governance Risk and Compliance SuiteManage changes to policies and controls
- Slide Number 21
- Slide Number 22
- Agenda
- Key Takeaways
- To Learn More
- Slide Number 26
- Slide Number 27
- Slide Number 28
-