Slavneft optimized process of formation of the consolidated statements according to IFRS based on Oracle Hyperion

2019: The project of optimization of a system of formation of the consolidated statements according to IFRS

On July 8, 2019 the Consist Business Group company reported that PJSC Slavneft Oil and Gas Company completed the project of optimization the systems of the formation of the consolidated statements according to IFRS based on Oracle Hyperion. The joint project allowed the company to reduce considerably terms of data collection and preparation of the reporting.

The structure of Slavneft includes the prospecting, extracting, overworking, logistic and service enterprises. One of the main objectives of holding is cost reduction and increase in efficiency of activity. Within optimization of the financial direction the decision on transfer of a system of formation of the consolidated statements according to IFRS on upgraded version of Oracle Hyperion Financial Management was made.

The system of reporting constructed on one of the previous versions of the solution Oracle Hyperion worked in holding for ten years and ceased to be supported by vendor. Updating and optimization of a system was required.

Within the project large-scale optimization of a system with its transfer to the latest version is executed. Outdated data and not used elements of reference books are deleted from the current version of a system, report forms, optimized code of calculations according to opportunities of the new version are updated taking into account the specified requirements — all this promoted significant fall forward of system operation.

Users of a system are 30 specialists of financial divisions of Slavneft. The project including optimization of accounting model based on Oracle Hyperion Financial Management, transition to upgraded version and support of commercial operation is implemented within four months. With the current version regular updates of vendor became available, the system interface improved.

as a result of project implementation we could optimize considerably process of the data collection and processing arriving from divisions of holding. Significantly the labor input of the performed works decreased and, as a result, terms of preparation of consolidated financial statements were reduced,

2011: Implementation project of an automated system of transformation and consolidation of financial statements

Specialists of LANIT company completed an implementation project of an automated system of transformation and consolidation of financial statements according to the US GAAP standards in one of the largest oil companies of Russia of JSC Slavneft Oil and Gas Company. As the platform the products Oracle Hyperion were selected.

Till a present situation preparation of consolidated financial statements according to the US GAAP standards was conducted in JSC Slavneft Oil and Gas Company in standard office applications. For the purpose of optimization of the corresponding business process the company management made the decision on creation of a specialized system of consolidation of the reporting. As the platform the system of consolidation of the financial and management reporting Oracle Hyperion Financial Management and the solution for management of standardization of the financial data Oracle Hyperion Financial Data Quality Management were selected. System implementation was entrusted LANIT company.

The system of JSC Slavneft Oil and Gas Company created in a project deliverable allows to perform collecting of reporting data (RAS) from the enterprises entering into holding; transform reporting data from RAS to US GAAP. Reporting data are broadcast in reporting currency. A system makes calculation of consolidation adjustments, creates a packet of the consolidated report forms and notes on US GAAP; supports process of preparation of the reporting. Now data are stored in the single database providing their uniform structure and consistency. There is a possibility of accomplishment of free data analysis by provided the analyst.

At the final stages of project implementation specialists of LANIT provided the training trainings for administrators and users of a new product and also organized a maintenance and support of staff of Slavneft in the course of trial operation of a system.

Representatives of JSC Slavneft Oil and Gas Company highly appreciated functionality of the created automated system. In the company expect that its implementation will allow to reduce significantly labor costs by collecting and transformation of reporting data, to increase quality, transparency and efficiency of preparation of the consolidated statements and to simplify process of its audit.

Commenting on completion of works on system implementation, the director of department of management systems and consulting of LANIT Pavel Goryansky said: "Our effective cooperation with Slavneft lasts already for many years, and we are glad that could implement one more joint project. Key factors of success of this project, - the high involvement of the customer and industry experience of specialists of LANIT who not only perfectly own the software but also perfectly know industry specifics of the oil and gas industry. It is sure that possibilities of a new system will allow the management of JSC Slavneft Oil and Gas Company Increase Quality and Efficiency of Preparation of the Consolidated Statements.