SAP Financial Consolidation 10.1, starter kit for IFRS, SP7

Transcription

1 SAP Financial Consolidation 10.1, starter kit for IFRS, SP7 Configuration design documentation

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3 Copyright 2018 SAP BusinessObjects. All rights reserved. SAP BusinessObjects and its logos, BusinessObjects, Crystal Reports, SAP BusinessObjects Rapid Mart, SAP BusinessObjects Data Insight, SAP BusinessObjects Desktop Intelligence, SAP BusinessObjects Rapid Marts, SAP BusinessObjects Watchlist Security, SAP BusinessObjects Web Intelligence, and celsius are trademarks or registered trademarks of Business Objects, an SAP company and/or affiliated companies in the United States and/or other countries. SAP is a registered trademark of SAP AG in Germany and/or other countries. All other names mentioned herein may be trademarks of their respective owners LEGAL DISCLAIMER No part of this starter kit may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. The information in this starter kit is proprietary to SAP. No part of this starter kit s content may be reproduced, copied, or transmitted in any form or for any purpose without the express prior permission of SAP AG. This starter kit is not subject to your license agreement or any other agreement with SAP. This starter kit contains only intended content, and pre-customized elements of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this starter kit is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this starter kit. SAP does not warrant the accuracy or completeness of the information, text, pre-configured elements, or other items contained within this starter kit. SAP DOES NOT PROVIDE LEGAL, FINANCIAL OR ACCOUNTING ADVISE OR SERVICES. SAP WILL NOT BE RESPONSIBLE FOR ANY NONCOMPLIANCE OR ADVERSE RESULTS AS A RESULT OF YOUR USE OR RELIANCE ON THE STARTER KIT. THIS STARTER KIT IS PROVIDED WITHOUT A WARRANTY OF ANY KIND, EITHER EPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SAP SHALL HAVE NO LIABILITY FOR DAMAGES OF ANY KIND INCLUDING WITHOUT LIMITATION DIRECT, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES THAT MAY RESULT FROM THE USE OF THIS STARTER KIT. THIS LIMITATION SHALL NOT APPLY IN CASES OF INTENT OR GROSS NEGLIGENCE. The statutory liability for personal injury and defective products (under German law) is not affected. SAP has no control over the use of pre-customized elements contained in this starter kit and does not endorse your use of the starter kit nor provide any warranty whatsoever relating to third-party use of the starter kit. 3

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5 Contents INTRODUCTION... 9 A. PRESENTATION BY MODULE DIMENSION BUILDER Overview of the dimensions Account dimension Flow dimension Audit ID dimension CATEGORY BUILDER Chart of accounts Option Periods Account families and flows behavior Dimensional analyses Formulas Controls Validation report REPORT DESIGNER Package schedules Output reports RULES Sets of rules Design principles Internal provisions (subset 04-PRO) Elimination of internal gains/losses on transfer of assets (subset 06-DIS)

6 4.5 Reciprocal accounts elimination (subset 08-ELIM) Elimination of dividends (subset 10-DIV) Elimination of investments (subset 14-INV) Goodwill calculation (subset 11-GWC) Goodwill recognition (subset 12-GW) Non-controlling interests calculation (18-NCI) Equity method (subset 20-EQM) Currency Translation Adjustment (16-CTA) End of consolidation rules (20-END) Reconciliation rules B. TRANSVERSE TOPICS IN-FLOW CONSOLIDATION Intangibility of opening balances Ensuring the consistency of data (Closing balance = Opening balance + movements) Ensuring the consistency of data (Flow F10 = Income + Expenses) Foreign currency translation Scope changes CONSOLIDATION METHODS AND RATES Portfolio and scope Proportional method Equity method ANALYSIS BY PARTNER AND SHARE Partner Share CALCULATION OF TOTAL ACCOUNTS Dimension Builder

7 4.2 Category builder / Step Chart of Accounts Rules Reports AUTOMATED FINANCIAL STATEMENTS (SCF, SCE, SCI) General principles Statement of Cash Flows Statement of Changes in Equity and Statement of Profit or Loss and Other Comprehensive Income SEGMENT REPORTING Revenue by geographical area Revenue by segment Non-current assets by geographical area STORAGE OF ECHANGE RATES, SCOPE RATES AND QUOTATION CONVENTION Description Configuration principles Retrievals CONTROL PROCESS Types of controls Configuration of the blocking controls Configuration of the control reports C. ENHANCEMENT PRINCIPLE ORGANIZATION OF THE DATABASE BEST PRACTICES Auditing the configuration Archiving configuration items UPDATING DIMENSION MEMBERS

8 3.1 Updating the list of entities Adding a new account Adding an audit ID Adding a flow D. ETERNAL RETRIEVALS ECEL FINANCIAL STATEMENTS

9 Introduction This documentation describes how the SAP Financial Consolidation starter kit for IFRS was designed. In part A, we describe and explain for each module of the Setup domain the configuration choices. Then, part B is focused on transverse topics such as In-flow consolidation or Segment reporting. Part C is dedicated to enhancement principles and the last part describes the external retrievals via Excel. It is very important to understand that one main configuration principle is the use of characteristics defined in the dimension builder in order to make it easy to enhance the customization. It is highly recommended to read through this document before changing the configuration, in order to understand how configuration objects interact in the solution and to enhance the starter kit in accordance with the way it was designed. The functional scope of the starter kit for IFRS is the following: - Produce IFRS financial consolidated statements with the following assumptions: - Actual data is entered following IFRS on a Year-to-date basis. It is possible for the reporting unit either to enter directly IFRS data or to import local GAAP data in the package and then enter (or import) adjustments to IFRS. - Entities are consolidated using the direct consolidation approach (and not the stepconsolidation method). - Financial statements are IAS1 and IAS7 compliant and consistent with the IFRS taxonomy. - The configuration uses the in-built feature of in-flow consolidation which enables the automatic production of the statement of cash flows and of the statement of changes in equity. - The following journal entries are automated: Elimination or internal provision, elimination of internal gain/loss on assets disposal, elimination of internal dividends, elimination of reciprocal operations, elimination of investments, calculation of non-controlling interests, and conversion at closing rate. - The following methods are supported in the IFRS starter kit: Full method, Proportional method and at Equity method. - Secure the process of production of the data by: - providing controls on data entry package, on manual journal entries, in central reports. - having portfolios and scopes generated from data entered in the packages. - providing analysis reports and check configuration reports. - Ease the IFRS transition (possibility to interface adjustments in the packages and track them at central level). - Provide an illustration of segment reporting analyses (revenue by geographical area, by segment, non current assets by GA, see B 6) based on the assumption that reporting unit are mono-activity and mono-country. Working languages are English, French, German, and Japanese. (Except for the data entry guide included in the guide tab of each package schedule: only the English and French versions exist). 9

10 A. Presentation by module 1 Dimension builder 1.1 Overview of the dimensions The table below lists all the dimensions (both built-in dimensions and additional dimensions created specifically) used in the starter kit, with a description of how they are used in the configuration. Dimension Use in the starter Kit Main topic Built-in Hierarchy CA-CATEGORY One category scenario available in the Starter kit: A - Actual DP-DATA ENTRY PERIOD Standard SC-SCOPE Pre-configured scopes for demonstration and test sets of data VE-VARIANT Pre-configured variants for IFRS transition CC-CONSOLIDATION CURRENCY ISO 4217 list of currencies AN-ANALYSIS Multi purpose dimension: - Financial statements line items (Statement of Cash Flows/Statement of Changes in Equity /Statement of Comprehensive Income) - Data entry on a daily basis - Retrieval of rates and quotation convention - Storage of the components of goodwill calculation (Equity share, Investment price) Financial statements & Conversion at spot rates PE-PERIOD Standard - Period = Data entry period as the Actual category is singleperiod RU-REPORTING UNIT Pre-configured Reporting units for demonstration and test sets of data + Third parties - The reporting units are mono-division and monogeographical Segment Report area ORU-ORIGINAL REPORTING UNIT Standard (same reference table as Reporting unit) - ORU = RU as the starter kit does not manage step consolidation AC-ACCOUNT The main types of accounts are assets, liabilities and equity, Profit and Loss (P&L) and clearing accounts Account/flow FL-FLOW - Opening/Closing Positions for Balance Sheet (B/S) & Year to Date for P&L accounts - Balance sheet movements Account/flow AU-AUDIT ID PA-PARTNER SH-SHARE CU-CURRENCY TO-TECHNICAL ORIGIN GO-GEOGRAPHICAL ORIGIN - Specific analysis: Disposal Identification of the entry type: - package - local or IFRS adjustments in the package - manual or automatic journal entries Identifies the reporting unit involved in the transaction (same reference table as Reporting unit) Identifies the held company (same reference table as Reporting unit) ISO 4217 list of currencies (same reference table as Consolidation currency) Standard - used in a few consolidation rules and reports Standard Consolidation entries Consolidation entries Consolidation entries Quarterly conversion LE-LEDGER Standard - used in general ledger reports NU-JOURNAL ENTRY NUMBER Standard - used in general ledger reports CO-COUNTRY ISO 3166 list of countries - used for the breakdown of external sales by Geographical Area Segment Report MU - MANAGEMENT UNIT Standard - Not used in the starter kit Segment Report PMU-PARTNER MANAGEMENT UNIT Standard - Not used in the starter kit Segment Report 10

11 1.2 Account dimension Balance sheet accounts In accordance with IAS1 Financial statements, the Balance Sheet is structured using a noncurrent/current approach. It is organized as follows: Description Code Description Code Non-current assets A1xxx Equity attributable to owners of parent Non-controlling interests Non-current liabilities E1xxx E2xxx L1xxx Current assets A2xxx Current liabilities L2xxx Non current assets and disposal groups held for sale A3xxx Liabilities included in disposal groups classified as held for sale L3xxx In order to be able to reconcile the variation between the carrying value at opening and end of the period, Gross value, Amortization and Depreciation / Impairment on Property, plant and equipment, Investment property, Intangible assets and Biological assets are stored on different accounts Income statement by function The income statement is composed of the following blocks of accounts Description Operating profit Financial result Share of profit (loss) of assoc. & JV accounted for using EM Tax Profit (loss) from discontinued operations Code P1xxx P2xxx P3xxx P5xxx P7xxx Other accounts pre-configured - Clearing accounts (AxxCL, LxxCL, PxxCL) are used for the elimination of reciprocal accounts: - To retrieve contributive balance sheet balanced by entity - To ensure that data generated by the rules are balanced (Debit/Credit) - Balancing accounts for Business Units (xxxbu) see B Total accounts (TAxxx, TExxx ) are used to organize the Chart of Accounts into hierarchy and calculated by the account rollup rule in the consolidated data table - Disclosure accounts (xxxx) Characteristics on the Account dimension Characteristics of accounts are used to configure dynamically most of the objects in order to secure the enhancement of the starter kit. 11

12 ACCOUNT The table below lists the Characteristics and Sub-characteristics defined in the starter kit: Dim. Charact. / Sub charact. Description Built-in SIGN Debit for Assets. Credit for Equity, Liabilities and P&L and + for several disclosure accounts Distribute amounts in debit and credit columns in journal entry reports by journal entry number. CLASS Assets, Liabilities, P&L, Total, Disclosures Used in formulas, controls, schedules, rules Also used to select accounts in the package Statement of cash flows and the MAPPING-1 reference table (consolidated SCF) DIGITS Number of digits after decimal (0 in the starter kit) CONVERTED Indicates whether the account must be converted (only number of stocks and Property accounts are not converted in the starter kit) FLOW Flow analysis DIMENSION Dimensional analysis TOTAL CONTET Assigns accounts to flow analyses in the category scenario. Also used in formulas, controls, schedules Assigns accounts to dimensional analyses in the category scenario. Also used in formulas, controls, schedules This characteristic defines the parent account for any elementary or sub-total account (same reference table as for it is used in the output reports (for example, statement of financial position) and to build the account hierarchy in the category scenario. - For the Balance sheet: TA000 hierarchy includes all asset accounts (Axxxx), TEL00 hierarchy includes all Equity accounts (Exxxx) and Liability accounts (Lxxxx); - For the Income statement: TP000 hierarchy includes all P&L accounts (Pxxxx). Distinguish between accounts available in the package only, and consolidated accounts -Used in data entry restrictions RULE-SEL Rule selection Selects accounts in consolidation and reconciliation rules RULE-DEST Rule destination Defines destination accounts in consolidation rules CFS Cash Flow Statement Selects accounts in the package Statement of cash flows and the MAPPING-1 reference table (consolidated SCF) 1.3 Flow dimension Balance sheet movements Changes in the B/S items are captured or calculated as follows in order to be able to calculate the Statements of cash flows, of changes in equity and comprehensive income: - For all the Equity accounts and the depreciation/amortization/impairment accounts, a detailed analysis of the movements is required, - For all the other assets and liabilities, a detailed analysis of movements is required only when the Cash Flow Statement makes a distinction between increase and decrease of the corresponding item, 12

13 - Specific operations are identified separately for all B/S accounts: Transfer (F50), Changes in accounting policies (F09), restructuring (transfer of B/S accounts from the acquired to the acquiring company in case of an internal merger: F70), - The flows used to handle scope changes are valid for all B/S items: Incoming entities (F01), Outgoing entities (F98), Change in consolidation rate (F04), Change in consolidation method (F02, F03) - Opening balances (F00) are automatically calculated from the closing balance (F99) of the previous year for all B/S items Other flows For P&L accounts, a dedicated flow Y99-Year-to-date is used. This flow has default values for conversion rate, carry over in the category builder that are different from those of flow F99 Closing flow. This enables a dynamic enhancement of B/S and P&L account families. A flow 01 Sales prices is configured to collect data on internal gains/losses. The in-built flows YTD and PER are not used in the starter kit. 1.4 Audit ID dimension The native AU-Audit ID dimension is defined to identify the origin of the data. Each type of data is assigned with a different audit ID: - Data entered in packages - Data from automatic processing - Data entered by manual journal entries Naming convention The naming convention enables the end-user to: - distinguish data generated automatically (ending with 0) from data generated manually (ending with 1 or 2). - retrieve the calculation on non-controlling interests (e.g. NCI-DIV10 Calculation of NCI on elimination of internal dividends) along with the basis of calculation (e.g. DIV10 and DIV11, elimination of internal dividends automatic and manual) Characteristics and properties on the Audit ID dimension The table below lists the characteristics / properties assigned to the Audit ID dimension. Characteristic Use in the Starter kit Built-in JEN-CUR Journal entry currency JEN-RESTRICT JE restriction on variant and scope LEVEL OB-AUDITID Opening balance audit ID MANUAL-JEN Manual journal entry DOC-RESTAT Document restatement Standard - Indicates at which amount level of the consolidated data table the amounts are loaded for each audit ID Standard - No requirement to enter neither scope nor variant in the starter kit Standard - Indicates if the Audit ID is available in the package or only centrally (carry over of closing flow triggered or not) Identifies the Audit ID for opening balances Standard - Indicates whether a manual journal entry can be posted on this Audit ID Standard - Identifies the audit IDs used for adjustments in the package 13

14 Characteristic Use in the Starter kit Built-in CONSO-RATE Apply conso rate SET Set of audit ID SPLIT Standard - Indicates whether the consolidation rate is applied to this Audit ID Distinguishes between the different types of Audit ID: local, adjustment, reciprocal elimination, internal profit, consolidation and technical Identifies Audit IDs that should be broken down between Group and NCI and defines the corresponding split Audit ID The values taken by these characteristics are summarized in the following illustration: (a) Elimination of internal provisions: 1 ; Elimination of internal gains and losses on sale of asset and dividends: 3 (b) Except for Currency Translation Adjustment (CTA): 3 and Adj. on gains and losses on disposal of a subsidiary: 1 or 3 (c) No application of the consolidation rate for reciprocal operations and internal gains and losses on sale of assets (Rate calculated by a coefficient) (d) Except for audit IDs with journal entry = 1 or 3 (e) Except for CTA and adjustments on gains/losses on disposal of a subsidiary 14

15 2 Category builder The starter kit provides one single Category Scenario A-Actual / C-Current. 2.1 Chart of accounts Hierarchical chart of accounts The hierarchical chart of accounts enables the automatic calculation of total accounts in the package (environment: Original package audit ID and adjustment audit IDs) and, together with the Account Rollup rule, of total accounts at consolidated level. It is initialized using the TOTAL characteristic of the ACCOUNT dimension. In the starter kit, the Category Builder hierarchical chart of accounts is the same as the one initialized in the Dimension Builder. To ensure the correctness of data retrieval, the account hierarchy defined in the dimension builder (based on the TOTAL characteristic), and the one set up in the category scenario, should always be identical. If it is not the case, you should know that: - Total calculation is done according to the Category Builder hierarchical chart of accounts - The Category Builder hierarchical chart of accounts is retrieved in reports initialized with the hierarchical mode This could generate discrepancies with totals that are initialized in schedules according to the Dimension Builder hierarchical chart of accounts Calculation properties Calculation properties enable you to define: - the journal entry sign that is used to store a positive or a negative amount in the database depending on the Debit or Credit position chosen in manual journal entries - in the starter kit, the journal entry sign of Asset accounts is Debit and the journal entry sign of Equity, Liabilities and P&L accounts is Credit (for instance, for an asset, an amount posted in a manual journal entry on the credit position will be stored in the database with a minus) - the rollup sign that is used to calculate total accounts (aggregation or subtraction of amounts) - in the starter kit, the rollup sign is always positive The combination of the Type and the Data entry sign enables to define the correct Journal entry sign for each account, it doesn t force the data entry sign in the schedule. Calculation properties defined in the category scenario must be consistent with the SIGN and CLASS characteristics of the ACCOUNT dimension in the dimension builder: Dimension Builder Account characteristics Account Class Sign Type Category Builder Calculation properties Journal entry sign Axxxx/TAxxx Assets Debit Assets Debit Exxxx/TExxx Equity & Credit Liabilities Credit Lxxxx/TLxxx Liabilities Pxxxx/TPxxx Profit & Loss Credit Income Credit xxx Disclosures +/D/C Other accounts D/C 15

16 Sign convention defined in the starter kit The following sign convention applies to closing balances: - Assets: gross values are entered as positive amounts; amortization, depreciation and impairment are entered as negative amounts - Equity & liabilities: amounts are entered as positive amounts - Income statement: revenues are entered as positive amounts, expenses as negative amounts. Assets Amort. Depr & Impairment Liabilities & Equity Income Expenses Entry Storage In addition to the sign logic defined for accounts, the flows use the following rules: - Assets (Gross values) and Equity & Liabilities: increases are entered as positive amounts, decreases as negative amounts - Assets (Amort. Depr & Impairment ): increases are entered as negative amounts, decreases as positive amounts Gross Values Assets Amort. Depr & Impairment Equity & Liabilities Increase Decrease Increase Decrease Increase Decrease Entry Storage Advantages of the sign convention defined in the starter kit: - Financial statements can be retrieved directly with stored amount (no amount reversal needed) - It enables total calculation as a simple addition of amounts, for instance: - In the P&L, income is positive amount and expenses are negative amounts ->the net income is the sum of income and expenses - In the Assets, gross value are positive amounts, depreciation & impairment are negative amounts -> the total assets is the sum of all asset accounts Do not change the sign convention as it has a strong impact on the design of formulas and controls in the category scenario, consolidation rules, and on some formulas used in reports (for example, in the Control dashboard). If the sign convention used in ledgers is different, the best practice is to use the interface mapping table to change the sign if necessary before importing data in Financial Consolidation Comments In the starter kit, comments are authorized on all accounts. 2.2 Option Journal entries The starter kit for IFRS configuration allows posting adjustments in the package within schedules and not manual journal entries. This choice was made in order to ease import of IFRS adjustments from accounting 16

17 systems. To change this option, please see How-to-guide How to implement adjustments in package by manual journal entries Data entry and restrictions The starter kit follows the direct consolidation approach. No step consolidation method and no subconsolidation package are defined for entities consolidated using the full consolidation or the proportional consolidation method. However, entities consolidated using the Equity method may enter a sub-consolidation package in a folder P-E, according to IAS 28. If the entities consolidated using the equity method don t have subsidiaries and can provide all the data, it is recommended for them to use the standard package (folder P-A). In the package schedules of folder P-A, consolidation accounts (for example, Goodwill or Non Controlling Interests) and consolidation flows (for example, Change in consolidation method or Incoming units) are not available. The accounts are filtered by the data entry restriction PACK-STD, based on the CONTET characteristic. Only accounts with context 1-GL-General ledger account are available in the package P-A. No data entry restriction is defined on the FLOW dimension. The selection is made by the data entry schedules design i.e. only the relevant flows are initialized in the schedules Other tabs The tabs used for the in-flow consolidation process (Opening balance, Changes to scope, Changes to consolidation method) are detailed in the B Periods The Actual Category Scenario is single-period. 2.4 Account families and flows behavior This major step consists of grouping accounts from the chart of accounts that have the same behavior into account families: - defining the authorized flows for these accounts that could be entered in the package schedules and in the manual journal entries - specifying: - the opening balance flow - the carry-over flow, the context in which this carry-over flow is filled in - the applied conversion rate and whether there is a flow for storing the conversion difference. See B 1.4 The Account families are loaded automatically using the FLOW characteristic of the ACCOUNT dimension Criteria to build the account families Criterion #1: Class of accounts Profit and loss accounts: Defined on Year to date flow (Y99) Double-sided journal entry authorized All Balance sheet accounts: 17

18 Defined on opening flow (F00), closing flow (F99), reclassification flow (F50), currency translation flow (F80), internal merger (F70) + scope changes flows (except Change in interest rate flow (F92)) and variation flow (F15); for the other flows, see criterion #2 Double-sided journal entry authorized on every accounting flow except closing flow (F99) Totals: Defined on flow F00, F09, F99 for balance sheet subtotals and flow Y99 for P&L subtotals No manual journal entry Disclosures: Single-side journal entry authorized Criterion #2: Financial statement purposes The account/flows pairs that can be entered are defined in order to produce automatically the statement of cash flows and the statement of changes in Equity. The second criterion is therefore the authorized flows. Hereafter is a list of all the account families with the following details: A list of the flows allowed in each family, Are the accounts of this family used in the package (local) or only at central level (central). In the Local/Central column, note that some account families contain both local and central accounts. (L+C); LS identifies accounts that are available locally only for the P-E subconsolidation package (EM entities). A list of the technical accounts used in each account family (when applicable). The distinction between local and central accounts is not a criterion to make two different account families. Only the class of accounts and journal entry contexts (single-side, dual-side journal entry) and then the authorized flows are used to define the account families Balance sheet An additional column in the table below, F15, indicates whether flow F15 is used as a control flow (C) that is, flow F15 must be equal to 0 or net variation flow (NV). Note that this information is not relevant for central accounts, because flow F15 is never calculated. The following flows are allowed in each and every Asset, Liability and Equity account family, and were not added to the corresponding tables: - F01-Incoming units - F02-Change in consolidation method (old) - F03-Change in consolidation method (new) - F04-Change in consolidation rate - F09-Change in accounting policies - F15-Net variation - F50-Reclassification - F70-Internal mergers - F80-Currency Translation Adjustment - F98-Outgoing units 18

19 ASSETS Acc. Local Account family type Central F15 Technical acc. included F06 F10 F20 F25 F30 F35 F40 F55 F92 01 FA-00 Property, plant and equipment - Gross value L+C C A11CL FA-02 Property, plant and equipment - Depreciation L C FA-04 Property, plant and equipment - Impairment L C FA-06 Construction in progress - Gross value L C FA-08 Construction in progress, Impair. L C FA-10 Investment property - Gross value L+C C A12CL FA-12 Investment property - Depreciation L C FA-14 Investment property - Impairment L C FA-16 Goodwill C - FA-18 Goodwill - Impairment C - A13CL FA-20 Intangible assets - Gross value L+C C A14CL FA-22 Intangible assets - Amortization L C FA-24 Intangible assets - Impairment L C FA-26 Intangible assets under development - Gross value L C FA-28 Intangible assets under development, Impair. L C FA-30 Biological assets - Gross value L+C C A15CL FA-32 Biological assets - Depreciation L C FA-34 Biological assets - Impairment L C FA-36 Invest. in subs., JV and associates - Gross value L C FA-37 Investments measured at equity (local) L C FA-38 Elim. of Invest. in subs. - Held company C - A181HC FA-39 Elim. of Invest. in subs. - Owner company C - A181OC FA-40 Invest. in subs., JV and associates - Impairment L C FA-42 Investments accounted for using equity method C - FA-44 Loans and cash advance L C FA-46 Loans and cash advance - Allow. L C FA-48 Receivables L NV FA-50 Accrued interests and income tax receivables L NV FA-52 Receivables - Allow. for bad/doubt. debts L C FA-54 Available for sale and other financial assets L C FA-56 Derivatives L C FA-58 Financial assets at fair value through profit or loss L+C C A18CL, A181CL, FA-59 Other financial assets at amortized cost L C A24CL FA-60 Inventories and biological assets L NV FA-62 Cash & cash equivalents L NV FA-64 Other assets L NV FA-66 Non cur. assets and disposal groups held for sale L C 19

20 TOTALS LIABILITIES EQUITY Acc. Local Account family type Statement of Profit or Loss Central F15 Technical acc. included All profit and loss accounts are gathered in a single account family: F06 F10 F20 F25 F30 F35 F40 F55 F92 01 FE-00 Issued capital L C FE-02 Share Premium L C FE-04 Treasury shares L C FE-06 Non-recyclable OCI reserves L C FE-08 Hedging reserves* L C FE-09 Recyclable OCI reserves L C FE-10 Other reserves L C FE-12 Retained earnings L C FE-20 NCI - Reserves and retained earnings LS C FE-22 NCI - Non-recyclable OCI reserves LS C FE-24 NCI - Hedging reserves* LS C FE-26 NCI - Recyclable OCI reserves LS C FE-28 NCI - Foreign currency translation reserve LS C FE-30 NCI - Treasury shares LS C FE-32 NCI - Compound financ. instruments LS C FL-00 Provisions for employee benefits L C FL-01 Other provisions L C FL-02 Debts on purchase of assets L+C NV L13CL FL-04 Payables L+C NV L23CL FL-06 Accrued interests and income tax liabilities L NV FL-08 Other financial liabilities L+C C L15CL, L25CL FL-10 Bank overdrafts L NV FL-12 Other liabilities L NV L26BU FL-14 Liabilities incl. in disp. groups class. as held for sale L C * These account families are deprecated since the adoption of IFRS9. They do not include any account. Acc. type Account family Local Central Technical acc. included Y99 P&L FP-00 Profit and loss L/C P11CL, P15CL, P22CL, P000, P22BU Total accounts For these accounts, the account families are defined as indicated in the following table: Acc. type Account family Local Central Technical acc. included F00 F09 F99 Y99 FT-00 Balance sheet - Total L/C CFS-A, CFS-L FT-02 Profit and loss - Total L/C Note that the totals on the Balance sheet accounts are calculated only for flows F00, F09 and F99, 20

21 OTHER Other accounts For these accounts, the account families are defined as indicated in the following table: Acc. Local Account family type Invest. in subs., JV and F-00 assoc. - Number of stocks Issued capital - Number of F-02 stocks Technical acc. Central included F00 F01 F02 F03 F04 F06 F09 F15 F20 F25 F30 F40 F50 F70 F80 F92 F98 F99 Y99 L A1810 L E1110 F-04 Dividends paid L E1610 F-06 Bargain purchase C A1300 F-08 FS: reclassifications and calculations C CFS SCI CBCR F-10 Goodwill, Gross - Declaration C A1310 F-12 Goodwill, Impairment - Declaration C A1312 F-14 Headcount L HEADCOUNT F-99 Property account C PROP 2.5 Dimensional analyses The Dimensional analysis step enables to define the following analyses: Internal transactions (Partner dimension) Internal ownership (Share dimension) Segment information (Country dimension) Issued capital, share premium, paid dividends, investment in subsidiaries by date (Analysis dimension) Correction of financial statements (Analysis dimension) Accounts in dimensional analyses are loaded dynamically using the DIMENSION characteristic of the Account dimension. The following table shows, for each reference value of this characteristic, how the corresponding dimensional analysis is defined, and which are the main indicators (account/flow combinations) defined. DIMENSION (Dimensional analysis) - [Account characteristic] Indicators (Account/Flow) Dimensions used D-AN-10 Statement of Cash flows account - All cash flow analysis items CFS / All ANALYSIS D-AN-15 Statement of Comprehensive Income - All comprehensive income analysis items SCI / All ANALYSIS D-AN-30 Issued capital and share premium - Variations by date E1110 E1210 / F40 ANALYSIS D-AN-40 Country-by-Country Reporting - All CBCR analysis items CBCR / All ANALYSIS D-PA-10 D-PA-20 D-PA-30 Non financial assets, Gross value - Acquisitions and disposals by partner Non financial assets, Dep. & Impair. - Acquisitions and disposals by partner Non financial assets, Clearing accounts - Acquisitions and disposals by partner [sev. accnts] / F20,F30,F50,01 [sev. accnts] / F30 A11CL,A12CL,A14CL,A15CL / All PARTNER PARTNER PARTNER 21

22 DIMENSION (Dimensional analysis) - [Account characteristic] D-PA-40 D-PA-50 Financial assets, Gross value - Acquisitions and disposals by partner Financial assets, Clearing accounts - Acquisitions and disposals by partner Indicators (Account/Flow) [sev. accnts] / F20,F30,F50,01 A18CL,A24CL / All Dimensions used PARTNER PARTNER D-PA-60 Revenue - All operations by partner and country P1110 / All PARTNER/COUNTRY D-PA-70 All other intercompany accounts - All operations by partner [sev. accnts] / All PARTNER D-PA-80 Dividend paid by partner and by date E1610 / All PARTNER/ANALYSIS D-SH-10 D-SH-15 D-SH-20 D-SH-30 D-SH-40 D-SH-50 D-SH-60 D-SH-70 D-SH-80 D-SH-90 Investments in subsidiaries, Gross value - Acquisitions and disposals by share, partner and date Investments measured at equity - Acquisitions and disposals by share, partner and date Clearing account - Investments in subsidiaries, Gross value - Acquisitions and disposals by share, partner and date Investments in subsidiaries, Impairments - All operations by share Investments in subsidiaries, Eliminations - All operations by share Investments in subsidiaries, Number of stocks - All operations by share Issued capital, Number of stocks - All operations by share Goodwills, Gross value and impairments - All operations by share Investments accounted for using equity method - All operations by share Gains or losses on sale of share - All operations by share A1810 / F20,F30,F50,01 A1810 / F40 A1810 / [Others flows] A1815 / F20,F30,F50,01 A1815 / F40 A1815 / [Others flows] A181CL / All A1812 / F30 A1812 / [Others flows] [sev. accnts] / All A1810 / All E1110 / All [sev. accnts] / All A1500 / All P1615 / All SHARE/PARTNER/ANALYSIS SHARE/ANALYSIS SHARE SHARE/PARTNER/ANALYSIS SHARE/ANALYSIS SHARE SHARE/PARTNER/ANALYSIS SHARE/PARTNER SHARE SHARE SHARE SHARE/PARTNER/ANALYSIS SHARE SHARE SHARE For most of these dimensional analyses, the indicator is calculated as the sum of its detail ( Post breakdown total to a higher level analysis type), but only in the Central automatic journal entries context. This option simplifies the configuration of the consolidation rules, but should not be changed, because the data generated by automatic journal entries would no longer be relevant. 22

23 2.6 Formulas Description of the formulas The following formulas are defined in the A-Actual category scenario: Long description Applied to dim. analysis Formula Trigger condition Context Calculation of dividends paid - {AC = E1610 ; FL = F06} = - {AC sum (E1210; E1610; E2010)} Package and central manual journal entries Calculation of net variation flow Yes {FL = F15} = {FL = F99} - {FL sum FL2-130} Package only Calculation of the net income of the period in the balance sheet - {AC = E1610 ; FL = F10} = {AC sum (CLASS=P) ; FL = Y99} + {AC = P000 ; FL = Y99} - {AC = E2010 ; FL = F10} Audit ID in AU2-CONSO Package and central manual journal entries Calculation of sales price by share - {FL = 01 ; SH in RU2-200} = {FL = 01 ; SH in RU2-200 ; PA sum RU2-200} Package and central manual journal entries Calculation of breakdown by shares of profit or losses on sale of shares - {AC in (DIMENSION=D-SH-90) ; FL = Y99 ; SH in RU2-200} = {AC sum AC1-FLOW14 ; FL sum FL1-150 ; SH in RU2-200} Package only Calculation of third-party partner for all accounts admitting a dimensional analysis by partner - {AC in AC1-DIM01 ; FL in FL2-110 ; PA = TP-999} = {#PA} - {PA sum RU2-100} Central manual journal entries Calculation of property account - {AC = PROP} = 1 Audit ID PACK01 only Calculation of dividends paid The analysis by beneficiary of dividend paid is entered in a technical account E1610. To ease the data collection, the total of this account is populated by formula as being the sum of distribution flow F06 on the authorized accounts of the equity Calculation of net variation flow In order to ensure that Closing flow= Opening flow + Movements (see B 1.2), flow F15 is always calculated for any B/S account on which F15 is allowed (only in the package, not in manual journal entries). The formula takes into account any enhancement of the Balance sheet. Additionally, note that this calculation applies automatically to any dimensional analysis, so whenever a dimensional analysis (by Partner, Share, etc.) is defined on an indicator allowed on flow F15, F15 is also calculated on the detail by Partner, Share, etc Calculation of the net income in the balance sheet The movement related to the net income of the period, stored on flow F10-Net profit (loss), is calculated from the Income statement. This calculation is done for all audit IDs except for manual journal entry at consolidated level (e.g. CONS01) in order to be able to post corrections to the non-controlling interest calculation of net income Calculation of sales prices by share The sales prices are entered in the package by share and partner. This formula aggregates all the partners to calculate the sales prices by share Calculation of breakdown by shares of profit or losses on sale of shares To avoid entering twice the breakdown by share of profit or loss on sale of share (in the schedule PA2300 that analyses the acquisition and disposal of share and in a schedule analyzing the breakdown of the account P1615 of the P&L), a formula carries over the amount entered in PA2300 by share on account P

24 2.6.7 Calculation of third party partner In order to ease the posting of manual journal entries, amounts entered on the total of an account admitting a dimensional analysis by partner are posted on partner TP-999 (see B 3.1). This calculation is triggered for manual journal entries only Calculation of property account This technical account is calculated in order to store and retrieve centrally the scope rates, the currency exchange rates used during the consolidation process and the quotation convention (multiply/divide) used in the exchange rate table. A rule selects this technical account and generates the above mentioned data. 2.7 Controls Two sets of controls have been created, depending on which kind of package is used: P-A Control set for actual statements: for any entity filling in a full package for Actual data, P-E Control set for equity method companies: only for EM entities, when the group allows those entities to fill in a lighter package focusing on Equity Structure of the sets of controls To facilitate correction of data inconsistency in the package, the P-A set of controls is structured the same way as the list of data entry schedules in the package (P-A folder in the Report designer). P-A10: Balance P-A20: Securities and shareholdings P-A30: Flows P-A41: Reciprocal operations P-A42: Internal gain or losses P-A43: Dividends P-A44: Internal provisions P-A45: Other detail As for the P-E set of controls, due to the smaller number of controls, it is composed of one unique sub-set (P-E00). Additionally, the corresponding P-E folder is made of one unique book totaling five data entry schedules Control configuration principles Two levels have been defined: Level 1: Check the data entered in the opening and closing balances Level 2: Check the analysis by flows The controls are built using characteristics of the account dimension (CLASS, DIMENSION, FLOW) but in some cases (Controls checking that Gross value > Impairment + Depreciation), you have to update manually the list of controls when adding a new account. The typology of controls can be summarized in the following table, by subset of controls. For each control type, a detail is provided on the environment (context and Audit IDs) in which the controls apply. 24

25 Context and Audit IDs Sub-set of control Control description Package + Local adjustments in the package Local adjustments in the package + Central journal entries Central journal entries Audit ID filter PACK01 + AU1-R (PACK11, PACKIFRS11, PACKIFRS12) AU2-PACK (All audit IDs except PACK01) AU1-CONSO AU1-GW-INV Audit ID aggregation mode: All together Audit ID by Audit ID Audit ID by Audit ID Audit ID by Audit ID P-A10: Balance Assets = Liabilities (Opening, Closing) Gross value > depr. & impairment (Opening, Closing) P-A20: Securities and shareholdings Investment in subs: F15=0 Investment in subs: F15=0 (by share) Invest. in subs: breakdown by share (Opening, Closing, Movements) Impairment on invest. in subs: F15=0 Impairment on invest. in subs: F15=0 (by share) Impairment on invest. in subs: breakdown by share (Opening, Closing, Movements) Impairment on invest. in subs: consistency B/S <> P&L Profit or loss on invest. in subs: breakdown by share Invest. in subs.: breakdown by partner (F20, F30) Number of shares in securities held has to be filled in (A1810) - (Opening, closing) Number of shares in securities: F15=0 by share (A1810) Number of shares in capital has to be filled in (E1110) - (Opening, closing) Number of shares in capital : F15=0 (E1110) Number of shares in capital : F15=0 by share (E1110) Total P&L=E1610+E2010 (for audit IDs in AU1-CONSO) Equity: F15=0 Equity: F15=0 for EM package (incl. NCI equity accounts) Goodwill: breakdown by share (A1300, A1310, A1312) Invest. in subs.: Gross value > impairment (Opening, Closing) Breakdown by date for each share/partner (F20 F40 Invest. in subs) Breakdown by date for each share (F40 issued capital and share premium) Breakdown by date for each share (F40 invest.in subsidiaries) A1815 / F55 = E15EM / F55 A1815 / F10 = P30EM / Y99 An investment should be measured at cost or at equity P-A30: Flows Assets and Liabilities: F15=0 (when applicable) F50: Assets=Liabilities+Equity F09: Assets=Liabilities+Equity F70: Assets-Liabilities-Equity =P1620 P-A41: Reciprocal operations P&L: Breakdown by partner B/S: Breakdown by partner (Opening, Closing, Movements) B/S: F15=0 (by partner) P-A42: Internal gain or losses Profit or loss on sale of assets: consistency B/S <-> P&L (by partner) Profit or loss on sale of assets: Breakdown by partner (F20, F30) 25

26 Sub-set of control Control description Audit ID filter Audit ID aggregation mode: P-A43: Dividends Dividends received: Breakdown by partner Dividends paid: Breakdown by partner Dividends paid: Breakdown by partner/date consistent with breakdown by partner P-A44: Internal provisions Allowances for bad/doubt. debts: F15=0 (by partner) Allowances for bad/doubt. debts: Breakdown by partner (Opening, Closing, Movements) Internal provisions: F15=0 (by partner) Internal provisions: Breakdown by partner (Opening, Closing, Movements) Assets (except invest. in subs.): Gross value > impairment by partner (Opening, Closing) P-A45: Other detail Third-party revenue: breakdown by country Reclassification between statement of cash flows line items: no impact on net variation Reclassification between statement of comprehensive income line items: no impact on net variation Retained earnings + Curr. translation reserve: breakdown by shares (only specific audit Ids from AU1-GW-INV) Environment All controls are blocking errors except controls checking: Package + Local adjustments in the package PACK01 + AU1-R (PACK11, PACKIFRS11, PACKIFRS12) All together Context and Audit IDs Audit ID by Audit ID Local adjustments in the package + Central journal entries AU2-PACK (All audit IDs except PACK01) Audit ID by Audit ID Central journal entries AU1-CONSO AU1-GW-INV Audit ID by Audit ID 26 the entry of the number of shares in capital and securities, the consistency of a breakdown by date (used for the spot conversion which is an option), the consistency between B/S and P&L for gain or loss on disposal of financial assets (because, in some cases of recycling fair value reserve, this control is invalidated). Most controls defined in the category scenario apply to the Package environment. Additionally, depending on their type and purpose, some controls are also triggered on audit-ids with level R-Local adjustment audit IDs and on central manual journal entries with level G Central journal entry audit IDs. For controls checking Assets = Liabilities at opening and at closing, the tolerance is set to 1 in order to deal with rounding problems when interfacing the package. Controls are linked to the package schedules where the data can be corrected. 2.8 Validation report The category scenario validation report shows two controls rejected on account A181CL. It doesn t avoid the validation of the category scenario and it doesn t have any impact on the correct running of these controls. Indeed, the A181CL account is a clearing account entered centrally only. Letting the validation report with these warnings avoids creating a filter specific to these controls.

27 3 Report designer 3.1 Package schedules Package folders There are two package formats available for data entry, corresponding to different folders: P-A-Package for Actual This package is used when entering data for entities consolidated using the Full or Proportionate consolidation method and for entities consolidated at Equity if they can provide the required information. Some schedules are dedicated to the navigation between data entry reports: they are located in book P- A00-Package summary, and include schedule PA0100, used as the package s home schedule. Schedules included in books PA-10 to PA-40 are dedicated to data entry. Books PA-50 to PA-70 are used for retrievals. P-E-Package for EM companies This package is dedicated to entities consolidated using the Equity method that can t provide all the data required in P-A package. The list of accounts to enter is much smaller (only Equity accounts, Net Income for the period and Dividends paid). This package should be used also when an EM entity holds subsidiaries. According to IAS 28, an associate should be included in the group s consolidated financial statements based on its own sub-consolidated accounts. For this reason, some consolidation flows are available in the P-E package schedules, as previously indicated in A Design principles of package schedules All the schedules are using the same style book and header/footer template. To help the end-user, signs are given to amount (when possible) or grey cells indicate when account/flow crossover is not authorized. Linking from the balances till the most detailed schedules (breakdown by flow, then by partner ) is used to facilitate data entry and ensure its completeness. A guide tab is defined for each schedule. The use of characteristics of the account dimension provides an application as dynamic as possible. Nevertheless, some schedules had to be hard-coded. The illustration hereafter indicates which folders are configured dynamically (as long as you don t create new characteristic reference members): 27

28 Books/Schedules P-A10 - Balance Account Characteristic Class Flow Dim. Total CFS P-A30 - Flow analysis P-A41 - Reciprocal operations P-A44 - Internal provisions P-A45 - Other detail P-A50 - Financial Statements P-A60 - Control statements P-A70 - Control - IFRS Adoption The following reports should be updated manually: P-A20 Securities and Shareholdings A1812 Inv. in sub., Impairment, A1810 Inv. in sub., Number of stocks, E1110 Issued capital, E1110 Capital - Number of stocks, E1610 Dividends paid are hard coded A1812 is hard coded in a cell formula in schedule PA Purchase and disposal of investments in subsidiaries P-A42 Internal gains and losses: Non current non financial assets are hard coded Amortization, depreciation and impairment are hard coded in cell formulas P-A43 Dividends P2140 Dividends and E1610 Dividends paid are hard coded PA4110 Intercompany, Income Statement and PA6200 Intercompany Income and expenses Account filter AC1-DIM02 is partially hard coded: it excludes P2140 Dividends Summary reports should be updated when adding a new schedule. 3.2 Output reports A series of output reports is available (folders: Cx). These reports may be used to edit the financial statements at the end of the consolidation process, as well as to check the consolidation process as you go along Organization of reports C0 - Home pages and summary reports This book includes a retrieval main home page, used to navigate easily to several retrieval reports. The consolidation you want to query data from is specified when running the document, and this initialization will be passed to any other document you open using the predefined links. Several reports enable the consolidation manager to monitor the consolidation process (e.g. list of the available consolidations). C1 - Annual report 28