Automated system of the reporting under IFRS in United Media Holding (UMH)

The project on automation of accounting and the reporting under IFRS based on a software package "INTALEV is complete: Corporate management" for the leading Ukrainian of media of United Media Holding.

Need of providing financial statements to investors according to IFRS, logically resulted the company in the need for automation of process of reporting according to international standards.

UKRAINSKY MEDIA HOLDING independently and successfully executed transformation of the reporting under IFRS, using possibilities of standard office programs (MS Excel). However, several shortcomings were in this situation observed:

did not arrange frequency of preparation of the reporting (once a year); on preparation of the reporting 3 months after closing of the period went to accounting; manual reporting, labor input of consolidation of data bulk, as a result possibility of errors; labor input of detailing of a total on analysts. The automated system of accounting and the reporting under IFRS, including consolidation of data bulk which would give the chance to supervision manpower quickly to obtain data and to carry out their analysis was necessary for the company.

UKRAINSKY MEDIA HOLDING stopped the choice on the software product "INTALEV: Corporate management". Important advantage of the software product "INTALEV: Corporate management" there was an ease of its integration with products at the 1C Platform and visual setup of a system. Complex approach of the company to implementation – methodology and automation from "some hands" became one more argument for benefit of cooperation about INTALEV.

The joint project of INTALEV and UKRAINSKY MEDIA HOLDING Group Avtomatization otchetnosti po MSFO Group started in November, 2010.

Project implementation was complicated by some organizational and technical moments:

• UMH Group includes more than 120 enterprises which booking data are more than in 90 information bases;
• Coexistence of different types of the 1C Platforms (7.7, 8.1, 8.2) and a large number of configurations – standard and modifed solutions for Ukraine and Russia;
• Information volume for a year about 12-14 million postings.

The project included two blocks:

• Methodology and development of regulations according to IFRS. In 1.5 months all necessary regulatory documents were developed and approved with auditors (Regulations on account policy according to IFRS, Regulations on registers and analysts of accounting according to IFRS, Regulations on the reporting under IFRS, Regulations on rules of transformation and amendments according to IFRS). Accurately formulated and approved methodology allowed to reduce considerably risks at further setup of a system.
• Automation of accounting according to IFRS. Automation of a system took place in several stages. As a result, all organizations of holding (120 companies, 90 information bases) were connected to architecture. * Data for 2010 are loaded, the model according to IFRS and mechanisms of transformation of data is configured. A system is brought into operation.
• Despite some features of the project, the project was implemented in the shortest possible time – 8 months.

Results of works speak about successful achievement of the project by project team of effective objectives:

• Reporting preparation terms according to IFRS are reduced.
• The possibility of more operational preparation of the reporting is implemented. The company determined for itself the most reasonable frequency of preparation of the reporting – 1 quarterly.
• The comparability of data is provided (the different periods in the reporting can be compared in uniform base). It allowed to increase the volume of disclosed information.
• Transfer of the diverse automated systems for a reporting preparation on a single platform.

Simplification of verification of the prepared reporting by auditors.