Slavneft Optimizes IFRS Consolidated Reporting Process Based on Oracle Hyperion

2019: IFRS Consolidated Reporting System Optimization Project

On July 8, 2019, Consyst Business Group announced that PJSC NGK Slavneft has completed a project to optimize the system for generating consolidated statements under IFRS based on Oracle Hyperion. The joint project allowed the company to significantly reduce the timing of data collection and reporting.

The structure of Slavneft includes geological exploration, production, processing, logistics and service enterprises. One of the main tasks of the holding is to reduce costs and increase the efficiency of activities. As part of the optimization of the financial direction, it was decided to transfer the IFRS consolidated reporting system to the updated version of Oracle Hyperion Financial Management.

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

Within the framework of the project, a large-scale optimization of the system was carried out with its translation into the latest version. Outdated data and unused reference book elements were removed from the current version of the system, the reporting forms were updated taking into account the updated requirements, the calculation code was optimized in accordance with the capabilities of the new version - all this contributed to a significant increase in the speed of the system operation.

Users of the system are 30 specialists of the financial divisions of Slavneft. The project, which included the optimization of the accounting model based on Oracle Hyperion Financial Management, the transition to an updated version and support for industrial operation, was implemented within four months. With the current version, regular updates of the vendor have become available, the system interface has improved.

{{quote 'author =' "said Anton Fedorov, Deputy General Director for Economics and Finance PJSC NGK Slavneft '| As a result of the project implementation, we were able to significantly optimize the process of collecting and processing information received from the holding's divisions. The labour intensity of the work performed has significantly decreased and, as a result, the time for preparation of the consolidated financial statements has been reduced,}}

2011: Automated Financial Reporting Transformation and Consolidation System Implementation Project

LANIT specialists have completed the project of introducing an automated system of transformation and consolidation of financial statements in accordance with US GAAP standards in one of the largest oil companies in Russia, OAO NGK Slavneft. Oracle Hyperion products were chosen as the platform.

Until now, the consolidated US GAAP financial statements have been prepared by OAO NGK Slavneft in standard office applications. In order to optimize the relevant business process, the company's management decided to create a specialized reporting consolidation system. As a platform, Oracle Hyperion Financial Management's financial and management reporting consolidation system and Oracle Hyperion Financial Data Quality Management's financial data standardization management solution were selected. The implementation of the system was entrusted to LANIT.

The system of OAO NGK Slavneft created as a result of the project makes it possible to collect reporting data (RAS) from the enterprises included in the holding; Transform reported data from RAS to US GAAP. The reporting data is translated into the reporting currency. The system calculates consolidation adjustments, forms a package of consolidated US GAAP reporting forms and notes; supports the reporting process. Now the information is stored in a single database, which ensures its single structure and consistency. It is possible to perform a free analysis of the data in the context of the provided dimensions.

At the final stages of the project, LANIT specialists conducted training trainings for administrators and users of the new product, as well as organized support and support for Slavneft employees during the trial operation of the system.

Representatives of OAO NGK Slavneft highly appreciated the functionality of the created automated system. The company expects that its implementation will significantly reduce labor costs for the collection and transformation of reporting data, improve the quality, transparency and efficiency of the preparation of consolidated reporting and simplify the audit process.

Commenting on the completion of the implementation of the system, Pavel Goryansky, director of the management and consulting systems department of LANIT, said: "Our fruitful cooperation with Slavneft has been going on for many years, and we are glad that we were able to implement another joint project. The key success factors of this project are the high involvement of the customer and the industry experience of LANIT specialists, who not only have an excellent knowledge of the software, but also know the industry specifics of the oil and gas industry. I am sure that the capabilities of the new system will allow the management of OAO NGK Slavneft to improve the quality and efficiency of preparing consolidated statements. "