Microtest automated release of the reporting under IFRS "Gals-Development"

Gals-Development (till 2011 – Tack System) specializes in the commercial and residential real estate, controlling all stages of project lifecycle from development of the concept before the subsequent management of a ready object.

In 2009 the VTB bank became the major shareholder of Gals-Development, and according to standards of VTB Group the company prepares the reporting under IFRS. Up to this point Gals-Development prepared the reporting under US GAAP. Process of its preparation was partially automated on the 1C Platform on the basis of a technique of parallel accounting. However this approach was excessive labor-consuming therefore transition to IFRS is decided to be carried out using the solution developed especially for problems of accounting of international standards. The partner in implementation of a new solution selected Microtest company which offered as base a program and methodical complex on the 1C Platform.

At the first stage consultants and methodologists Microtest together with the staff of department of the international financial statements of Gals-Development developed the reporting technique based on transformation of data of RAS in data of IFRS. Then the release of the reporting in 4 stages was automated:

• data collection of accounting of separate legal entities from the accounting systems;
• addition of data with information from additional sources;
• consolidation of the complemented these all legal entities in the module "1C Consolidation";
• transformation and reclassification of data in the international chart of accounts.

A system releases more than 140 forms of the reporting, including:

• trial balance;
• consolidated statement about a total return;
• consolidated statement about a financial position;
• turnover balance sheet;
• cash flow statement.

In a system 4 IFRS specialists work. Labor costs on release of the reporting decreased by 30%, time of formation of a packet of the reporting under IFRS was reduced from 3 to 2 weeks that has essential value for the company whose actions are quoted on the London Stock Exchange (LSE) and also for reduction of terms of preparation of the reporting for VTB Group and management of the company.

Information on results of work of all companies of the Gals-Development group including located abroad is available to the analysis in 1.5-2 weeks after closing of ledgers under RAS of a reporting quarter now. To shareholders and key staff of the company it will allow to analyze quickly results and to make management decisions.