How Reporting is different in IFRS and What it means to IT
It gets a bit confusing for technical experts to understand as what drives those big scale projects for Hyperion or SAP BPC, for that matter.
One of such factors is regulations, and these regulations also have a reason to exist. For example IFRS resolves many of the existing issues in current reporting standards. Other benefits are:
1. It provides simplified and more relevant reporting
2.Reduce operating costs
3. Increases access to capital
4.More transparency and comparability for investors and for stakeholders.
Below are the high level changes which occur while moving to IFRS
HFM provides many other benefits for accounting and for financial reporting. Quite often changes to these systems are driven by changes in regulations. For example IFRS enforces a IFRS compliant consolidation model which has capability to roam between results in different GAAPs and report them side by side, including differences in them. Hyperion has a feature in newer editions called as “Customizable multi-dimensionality” which achieves it.
Other main benefits (except the obvious ones) are:
1. HFM has better financial controls for SOX compliance and for other financial regulations.
2. HFM can handle multiple CoA, Multiple organization structures/
3. It can have muti-currency consolidations
For HFM Projects
Below are the usual changes for these projects
1. Create New Applications – New Calc rules, New data
2. Use custom dimensions – GAAP vis-a-vis IFRS
3. Use new set of accounts – Mostly same, but may be new parent accounts required, or require some more detailing
4. Use new entities – Based on Requirements
5. Change Taxonomy as per XBRL.