"The federal soldier Mogul Naberezhnye Chelny" automates accounting on GAAP using "Homnet: IFRS"

The joint Russian-American venture "Federal Soldier Mogul Naberezhnye Chelny" founded by Federal Mogul Corporation and JSC KAMAZ begins the project of automation of accounting on GAAP. Within complex automation of the enterprise the software product "will be implemented by Homnet: IFRS".

The Russian-American enterprise "Federal Soldier Mogul Naberezhnye Chelny" is founded in 2009 and specializes in production of pistons, piston rings and sleeves of cylinders for internal combustion engines.

The management "the Federal soldier Mogul Naberezhnye Chelny" made the decision to automate enterprise management using "1C:Enterprise 8". One of the predominating project tasks is automation of accounting on GAAP, in communication by need of providing financial statements in the head office of the company located in Michigan (USA).

GAAP are the generally accepted accounting principles applied mainly in the USA. In spite of the fact that in 2008 Securities and Exchange Commission (USA) obliged the American companies to complete transition to International Financial Reporting Standards (IFRS) by 2014 and to refuse gradually GAAP, many enterprises continue to keep account on GAAP.

Due to the possible transition of Federal Mogul Corporation to IFRS, leadership team "the Federal soldier Mogul Naberezhnye Chelny" made the decision on implementation of the flexible information system allowing to keep account according to the GAAP standards which will allow afterwards without serious consequences and into short terms to pass to accounting on IFRS.

Specialists "the Federal soldier Mogul Naberezhnye Chelny" began search of the suitable software product in parallel with the partner in automation – "Intensive Center STIV". A choice was made for benefit of a system "by Homnet: IFRS" the Homnet Consulting company developed on the 1C:Enterprise 8 platform.

The chief specialist on IT of "Federal Soldier Mogul Naberezhnye Chelny" company Andrey Shestakov comments: "Irrespective of Data center STIV we decided to conduct an own research of the IT market in search of the software meeting all requirements of our company. What our surprise when comparing results the choice of our specialists matched the choice of the partner was".

Reasons of acquisition of a product "Homnet: IFRS" for implementation in "Federal Soldier Mogul Naberezhnye Chelny" company were the following advantages of the program:

• Possibility of implementation of broadcast of postings at the time of their carrying out in an accounting subsystem.
• Possibility of formation of postings in accounting under RAS and GAAP different dates.
• Possibility of integration of the program with the 1C: Manufacturing Enterprise Management 8 system.
• Possibility of determination of additional systems of accounting of the company independently – whether it be accounting according to the IFRS or GAAP.

The project of automation of accounting on GAAP starts within complex automation of the enterprise. Now employees "the Federal soldier Mogul Naberezhnye Chelny" keep accounting, tax, personnel account and payroll calculation using "1C: Enterprise 7.7". However with increased operating capacity of recently opened company the need for creation of an end-to-end information system with the help "1C: Manufacturing Enterprise Management 8" increased.

The leading specialist of "Intensive Center STIV" Ivan Shevchenko noted: "We are going to complete an implementation project of "1C: Manufacturing Enterprise Management 8" on project technology in "Federal Soldier Mogul Naberezhnye Chelny" company by the end of 2010. Regarding consolidation of configurations "Homnet: The IFRS" and to us are helped 1C: Manufacturing Enterprise Management by specialists Homnet Consulting which at the moment carried out integration of programs and created the integrated configuration that will allow to reduce an implementation time. Thanks to creation of uniform information base on initial stage of the project we will have no need for additional development of mechanisms of unloading - data loading. At such approach to implementation there is no rupture of information space, duplication of information. In September of this year the unified information system will begin functioning in the test mode".

During the project it is also going to implement the Budgeting block (the block of the software product "Homnet: Budgeting", developed by Homnet Consulting company) which requires the minimum settings and allows to manage cash flow in a complex. Implementation project "Homnet: The IFRS" and the Budgeting block will be executed at technical and consulting support of specialists Homnet Consulting.

"Some part of our clients is made by the regional representative offices of the international companies located in the Republic of Tatarstan. Recently one of the tasks demanded by them is automation of accounting according to international standards. According to us "Homnet: IFRS" – an optimal multifunction product for automation of financial accounting and accounting on GAAP and IFRS which will allow to solve problems of our clients. We hope that our first experience of cooperation with Homnet Consulting company within automation "the Federal soldier Mogul Naberezhnye Chelny" will lay the foundation for other joint projects", – Ivan Shevchenko says.