Corporate Governance &
International Accounting
Standards
Understanding the Impact to Your
Business Systems
The following is intended to outline our general product direction and is intended for information purposes only.
The development, release and timing of any features or functionality remains at the sole discretion of Oracle.
This presentation is not a commitment to deliver any material, code or functionality.
Francis Veldeman
Vice President
Business Development
Oracle Corporation
Steven Miranda
Vice President
Applications Development
Oracle Corporation
Corporate Governance
& IAS
Enhanced Transparency & Control
The Drivers
 The Sarbanes-Oxley Act
 International Accounting Standard (IAS)
Reporting Impact: Sarbanes-Oxley Act
Close Your Books Faster & Ensure Accurate Processes
 Publicly Certify:
– You “are in control” and your numbers are reported “fairly”
 Expand External Auditors Testing to Operational Controls
 Apply Standards to Reporting Entities
– Parent and all subsidiaries
– Overseas and at home
 File Sooner
– After December 15, 2003…
phased in over 3 years
 10-K: 90 days, 75 days, 60 days
 10-Q: 45 days, 40 days, 35
Changing The Reporting Framework…
Telefonica - 2001 Results
– 2.11 billion euro profit under Spanish rules
– 7.18 billion euro loss under US GAAP
France Telecom – 2001 Results
– 5.2 billion euros operating income under French rules
– 8.0 billion euro operating loss under US GAAP
Reporting Impact: IAS
Migrate and Unify Corporate Reporting…and More
 New Valuation Approaches
 Consistency of Data from All
Locations World Wide
 Inventory
 Financial Instruments
 Fixed Assets
 Employee Benefits
 Subsidiary Reporting
 Segment Reporting
7
Enhanced Transparency
The Consequences
 Dramatically Enhanced Reporting Framework
– IAS defines overall content and underlying rules
– Sarbanes-Oxley defines timelines and enforces internal control
– Local GAAPs do impose additional regulations…
and in some cases contradictory regulations
There is no way out !!!
Can your IT-Systems cope with that ???
PWC Survey Gives Us The Answer…
New Reporting Standards Require Significant IT Changes
 PWC Survey on the Impact of an IAS Migration on
Management Information Systems:
– 569 companies have been asked BEFORE their IAS
migration whether they do expect to change their system –
32% said YES
– 98 companies have been asked AFTER their IAS migration
whether they had changed their system –
52% said YES
CFO survey: Impact of IAS, PWC, 2002
What is the IT Impact?
Impact On Information Technology
Control – As Enforced by Sarbanes-Oxley Section 404
 Ensure Each Business Process is Documented and
Linked to Corresponding System-Based Process
 Monitor and Maintain Each System-Based Process
–
–
–
–
Setup and track record of changes
Access rights and track record of changes
Audit status
Provide additional user documentation to highlight important parts
 Ensure You Are ‘In Control’ (as defined above)
– Of ALL processes
– On ALL systems
– In ALL your subsidiaries around the globe
This is not a US only issue…
Impact On Information Technology
Close Your Books Faster – As Enforced by Sarbanes-Oxley
 Be Prepared to Submit Your 10Qs in 35 Days
– Consolidate data physically
– Review and adjust
– Eliminate interco’s
– Create additional JEs / do the ‘real’ consolidation
– Get your auditor’s sign off
 Be Prepared to Submit Your 10Ks in 60 Days
Impact On Information Technology
IAS
 Consistent Definitions of Items Across the Globe
– Revenue, cash flow…
 New Valuation Processes
– Financial instruments
– Assets
– Inventory
– Employee benefits
 IAS Standards vs Remaining Local Legal Requirements
 Segment Reporting
Oracle’s Best Practices
for Corporate Governance
& IAS
With Oracle Applications E-Business Suite
Provide Enterprise-Wide Visibility
Enhance Internal Control
Increase Operational Efficiency
Provide Enterprise-Wide Visibility
 Set-up Fail-safe, Transparent, Integrated Processes
 Enable Relevant and Timely Management Information
Consolidate Global
Financial Data
Provide Single
Source of Truth
Support Real-Time
Mgmt Information
 Reduce No. of
 Instill Confidence
 Drill to Any Level
 Offer Business
Instances
in Executive
Decision Making
Analytics
Visibility, Control, & Efficiency
Enhance Internal Control
 Integrate and Centralize Internal Processes & Controls
– Document Business Processes & Corporate Communications
– Secure Internal Controls & Monitor Business Issues w/ Easy Access
 Train Employees and Monitor Skills for Maximum Policy &
Procedure Compliance
Internal Controls
Workflow
 Instill Process Control  Standardize Processes
 Instill Audit Control
 Ensure Exception
Reporting
 Instill Skills Compliance
Shared Services
 Centralize Enforcement
 Reduce Ad-hoc Activities
 Implement Change Rapidly
Visibility, Control, & Efficiency
Increase Operational Efficiency
 Consolidate and Reconciliation of Information Rapidly
 Minimize Administrative Overhead
 Implement Centralized, Low Cost, Error-Reducing
Processes for Data Consistency and Accuracy
Automation
 Automate Business
Processes
Project
Collaboration
Business System
Architecture
 Ensure Scalability &
Reliability
Visibility, Control, & Efficiency
Oracle Corporate Governance Solution Set
Visibility
Control
Efficiency
Consolidate Global Financial Data
 Oracle Financials 11i
 Global Single Instance Model
Provide Single Source of Truth
 Oracle Common Data Model
Enable Real-Time Information and
Corporate Performance Management
 Oracle Daily Business Intelligence
 Oracle Corporate Performance Mgmt.
Monitor Business Issues
 Oracle Workflow & Approvals Manager
 Oracle Alerts & Notifications
Integrate and Centralize
Business Operations
 Oracle E-Business Suite
 Shared Service Center Model
Document Corporate Communications
 Oracle Collaboration Suite
Document Business Processes and
Support Compliance
 Oracle Tutor
 Oracle iLearning
Document, View, Test, & Certify Internal
Controls
 Oracle Internal Controls Manager
Automate Business Processes
 Oracle Self-Service Solutions
Offer Project Collaboration
 Oracle Project Collaboration
Integrate Technology & Applications
 Oracle 9i, 9iAS, and E-Business Suite
Oracle’s Solution
The Basics
Run a Global Single Instance
Reduce Errors, Simplify Operations, Speed Transactions
“By moving to a global single instance with enhanced multilingual
and multicurrency functionality, we achieved consistent
methodologies and one source for our financial data.” – C-COR
“Today, with a single. Global financial management system in
place, we have a clear view into each region’s performance.”
– ViewSonic
Centralize on a Unified Data Model
Provide a Single Source of Truth
 Provide seamless
Finance
HR
Project &
Contract Mgmt
Asset
Maintenance
Planning
integration between
products
 Eliminate need for
Purchasing
All Customer,
Supplier and
Product
Information
complex messaging &
replication
 Perform enterprise-wide
Manufacturing
transactions
 Track all customer
Sales &
Marketing
Service
Order Mgmt &
Warehousing
interactions
 Accurate & consistent
information
Provide Common Denominator
Eliminate Boundaries
 No Language Boundaries
• Support for 30 languages
• Multi-lingual external documents
• All languages installable
in same Unicode instance
 No Currency Boundaries
 No Legislative Boundaries
• Customers operating in 100+ countries
• Support for statutory & customary local requirements
Benefit From Shared Service Centers
Leverage Best Practices from Different Groups/Regions
Local Division / Group
Local Division / Group
Local Division / Group
Single
Instance
Shared Service Center
 Increase Efficiencies, Reduce Costs
–
Establish global processes and accessibility to data
–
Hasten incorporation of new business units
–
Eliminate redundant structures
–
Standardize and automate processes with self-service
 Improve Operational Quality
–
Establish the right balance of centralized and decentralized functions
–
Focus on core competencies
 Deliver Better Business Intelligence
–
Summarize and gain global insight with single source of truth
Case Study: Oracle
Why Go Global?
It is All About…
 Information
– Quality
– Accessibility
– Timeliness
 Cost Reduction
– Hardware
– Facilities
– Headcount
 Service Improvement
Issues Before Consolidation
 Multiple Data Centers, Databases, Environments
 Variety of Applications, Platforms, & Operating Systems
 Inconsistent Usage of Applications
 Multiple Support Groups
 Inconsistent Business Practices Within LOBs, Divisions,
and Countries
Becoming an E-Business
Oracle’s $2 Billion Dollar Savings Target
Previous Goal
New Goal
Consolidate IT
$200,000
$250,000
Sell Side
$550,000
$1,450,000
Buy Side
$150,000
$200,000
Inside
$100,000
$100,000
Total
$1,000,000
$2,000,000
IT Consolidation – Oracle’s Story
Eliminate Complexity & Improve Efficiency
120
120
100
97
80
Pre-EBS
After-EBS
70
60
40
32
20
1
4
3
3
ERP SVR
ERP DB
0
EMAIL SVR
EMAIL DB
Oracle’s ERP Global Consolidation
Started with . . . . . . . . . . . . . . . . . . . 65+ (70+) instances
January 2001 . . . . . . . . . . . . . . . . . 20 instances
January 2002 . . . . . . . . . . . . . . . . . 10 instances
January 2003 . . . . . . . . . . . . . . . . . . 3 instances
October 2003 . . . . . . . . . . . . . . . . . . 1 instance
December 2003 . . . . . . . . . . . . . . . . 1 CRM/ERP instance
The Oracle Experience
 $12M in ERP Annual Savings
 $18M in CRM Annual Savings
 $11M in E-mail Annual Savings
 $60M in Desktop Simplification Annual Savings
 $13M in Annual Maintenance Reductions
 $200M in Operating Expense in 2 Years
Shared Services Benefits
 Balance Centralization &
Visibility,
Control,
Efficiency,
Quality
Decentralization
(Local vs Central split)
 Standardize on Best
Business Practices
 Gain Economies of Scale
 Improve Support
 Enable Better, Smarter
Information
Shared Services Benefits
 Eliminate Redundant
Structures
 Standardize on Best Business
Cost
Practices
 Move to Low-Cost Countries
Oracle’s Global SSC Network
Americas SSC
Rocklin, CA
Serving 13 countries
EMEA SSC
Dublin, Ireland
Serving 31 countries
India SSC
Bangalore, India
Selected Global Functions
AsiaPac SSC
Sydney, Australia
Serving 13 countries
Oracle’s Shared Service Functions
 Tactical Purchasing
 Accounts Payable
 Order Administration
 Accounts Receivable
 Cash Management
 Revenue Accounting
 Revenue Recognition
 General Accounting
 Collections
 Data Librarians
Accountability
Increase Visibility w/ Std Processes & Shared Services




To Shareholders
To CEO and Board of Directors
To Employees
To the SEC or Other Regulatory Agencies
More Best Practices
for Corporate Governance
& IAS
Support Real-Time Management Info
Oracle Daily Business Intelligence
 Leverage Personalized Portal
 Offer 24x7 Self-Service Management Reporting
 Provide Visibility Across All Management Levels
 Ensure Security at Every Level
 Deliver Flexible, Real-Time Reporting
in Any Format
 Web delivered HTML
 Mobile device support
 Dynamic spreadsheet
integration
 Online queries
Visibility, Control, & Efficiency
y
Enable Corporate Performance Management
Strategize, Plan, Execute, and Measure Collaboratively
Portal
Users
Transaction Users
Analysts
Managers
Needs
Transaction
Reporting
Management
Reporting
Analysis
Planning,
Budgeting
Unified Data
Transactions
Summaries
Plans
Visibility, Control, & Efficiency
Monitor Business Issues
Oracle Workflow and Approvals Management
 Manage transaction’
workflow and approval
processes
 Integrate control
across E-Business
Suite
 Offer Extensible
Business Rules
 Eliminate Need for
Customized Approvals
Routing
Visibility, Control, & Efficiency
Automate Exception Mgmt & Notification
Oracle Alerts & Notifications
 Manage Proactively and Increase Daily Productivity
 Improve Ability to Research and Resolve Problems
 Specify Database Exception Conditions for Continuous
or Scheduled Monitoring of Entire E-Business Suite
Data
Alert
Check
Actions
Action Sets
 Define Notification and Action Rules
 Deliver Tailored Exception Reports Instantly via E-Mail
Email Msgs.
Concurrent Rqst.
SQL Scripts
OS Script
Visibility, Control, & Efficiency
Exception History &
Action History
Document Policies, Procedures, & Processes
Oracle Tutor: Online Repository, Authoring, Publishing
 Edit Pre-defined
Model Procedures to
Reflect Unique Nature
of Your Business
 Build Role Based
Desk Reference
Manuals for All Your
Employees
 Maintain a Library
of Customized
Business Process
Documentation
Visibility, Control, & Efficiency
Train on Policies, Procedures, & Processes
Oracle iLearning: Provide Training & Ensure Compliance
Inputs
Demand
 Certify Employees
 Enable Compliance
 Reduce Risk of Malfeasance
New Laws &
Regulations
Workforce
Changes
Business
Strategy
External
Changes
Flow
Content
Business
Processes
Legal
Learning
Delivery
Finance
Compliance
 Track Training Initiatives
 Measure Impact
Visibility, Control, & Efficiency
How do I
document &
manage noncompliance?
How do I
ensure
training
consistency?
How can I
reduce time to
compliance?
Broaden Self-Service Capabilities
Increase Efficiency and Improve Accuracy





Automate & Connect
Internal Processes
Extend Automation
to Customers / Suppliers
Expense Reports
Time Cards
Employee Information
PO Processing
Competency Management





Orders
Invoices
Payments
Requisitions / Auctions
Inquiries and Disputes
Visibility, Control, & Efficiency
Project Collaboration
Facilitate Project Management Across the Enterprise
 Access Complete Internal Audit Project Information
 Provide Role-based Access to Multiple Stakeholders for
Different Types of Project Information
 Enable Anytime, Anywhere Information Sharing Among
Relevant Stakeholders
 Offer Common Document Repository
Provide Internal Audit Team w/ Complete Visibility to
Status, Dependencies, Issue Tracking, & Deliverables
Visibility, Control, & Efficiency
Integrate Technology & Applications
HR, Financials, Sales, Manufacturing
Query &
Reporting
Web Site
Analysis
OLAP
ETL
Operational &
Analytic
Applications
ETL Tool
Portal
Data Mining
Foundation
BI Beans
Application
Server
Table
Compression
Database
Visibility, Control, & Efficiency
New Product:
Internal Controls Manager
Oracle Internal Controls Manager is a comprehensive
tool for executives, controllers, internal audit departments,
and public accounting firms to use to document and test
internal controls and monitor ongoing compliance.
To Document, Test, & Certify Internal Controls
Internal and External Auditors will Need:
Workflow Management Tools
Document Management Tools
System Configuration Tools
Survey Tools
Procedure Documentation Tools
Process Control Limits
Sampling & Statistical Tools
Project Management Tools
To Document, Test, & Certify Internal Controls
Oracle Has the Building Blocks:
Workflow Management Tools
Workflow
Document Management Tools
Files
System Configuration Tools
iSetup
Survey Tools
iSurvey
Procedure Documentation Tools
Tutor
Process Control Limits
Performance Mgmt FW
Sampling & Statistical Tools
Audit Manager Repts.
Project Management Tools
Project Collaboration
New Product: 11i.9 Timeframe
To Document, Test, & Certify Internal Controls
Oracle is Introducing:
Oracle Internal Controls Manager
Workflow Management Tools
Workflow
Document Management Tools
Files
System Configuration Tools
iSetup
Survey Tools
iSurvey
Procedure Documentation Tools
Tutor
Process Control Limits
Performance Mgmt FW
Sampling & Statistical Tools
Audit Manager Repts.
Project Management Tools
Project Collaboration
Oracle Internal Controls Manager
Benefits
 More Efficient Internal Control Testing
– Exposing the native controls of the applications
in an auditor’s context
 Higher Certainty in Your Risk Assessment
– Providing verification mechanisms as part of the
applications themselves
 Lower External Audit Verification Costs
– Allowing external audit independent verification
of the same controls
Oracle Internal Controls Manager
Solution
 Expose Internal Audits to Sarbanes Oxley Certifiers
 Make Internal Policies Integral Part of Your System
 Highlight Application Control Points
 Compare Internal Policies to External Guidelines
 Compare Actual Practices to Internal Policies
 Provide Risk and Issues Library
 Validate Financial Values
– from the consolidated level…
– to the transactional level at every subsidiary
Equipped for IAS?
Enabling Capability
Visibility
Control
Efficiency
Oracle
PeopleSoft
SAP
Consolidate Global Financial Data

Partially
Partially
Provide Single Source of Truth on a
Common Data Model

No
No
Enable Real-Time Information

No
Partially
Monitor Business Issues with
Embedded Workflow

Partially
Partially
Integrate & Centralize Business Operations

No
No
Document Corporate Communications

No
No
Document Business Processes &
Support Compliance



Centralize Internal Controls Management

No
No
Automate Business Processes



Complete and Integrate Technology &
Applications

No
No
Oracle E-Business Suite
Best Practices for International Accounting Standards
 Visibility
Access accurate, relevant information across organization
 Control
Centralize and secure policies, processes, and procedures
 Efficiency
Consolidate and reconcile data quickly
Momentum
What do they have in common?
Centralized Processes & Systems Using Oracle’s EBS
First CEOs & CFOs to Register Sworn Statements
Set Key Benchmarks for Corporate Reporting
Shortened closing time by up to 90 %
Survey:
Consolidation and Reporting Functions in European Multinational Enterprises
PWC, April 2002 on www.pwcglobal.com
Best Practice Leaders…
Control, Efficiency, Reliability, Visibility
PSZAF
“By using the Oracle business application, business processes are
integrated and steam lined; data capture is speedier and once only, for
employees, partners and suppliers; We can see transaction details right
down to individual store level.”
- Saeed Al Muaili, Information Technology Manager
Emerat is the leading Middle East petroleum distributor and retailer of fuel and related products.
Mission to deliver customer value, maintaining national, public and government interests. Rolled
out e-business initiative throughout corporate offices and distribution terminals. Integrated retail
and Cstore applications with Oracle business application.
Kingston upon Hull City Council
“With Oracle E-Business Suite 11i, we have an integrated business model
that enables us to deliver our promises to the citizens of Hull”
- Graham France, Head of Service Re-engineering and Development
“Our ‘Best Value Review’ identified opportunities to improve service and
control; before Oracle Financials, each department had their own system this had to change. Now we have everyone using one, integrated system;
advantages gained include faster reconciliation, greater expenditure
control, procurement savings, all managers online, improved visibility
therefore accountability; the flexibility of the Oracle programme enables us
to achieve ‘One Version of The Truth’.”
- Paul Jackson, Head of Service Transition Team
“We are convinced that the benefits of this project will enable good returns
for Virgin Atlantic both in terms of cost savings and in business process
improvements that will impact both short term results and help us build for
future growth,”
- Simon Fox, Chief Information Officer for Virgin Atlantic
What Our Customers Are Saying…
“Oracle's approach to business systems involving
consolidation of data and shared service centers
assists us in meeting our corporate governance goals”
-- Phil Chronican, Chief Financial Officer, Westpac Banking Corporation
“In a highly regulated sector such as reinsurance, a robust corporate
regime with effective financial system controls was a clear priority.
The goal was to increase our control of finances and to speed our
processes… Oracle is playing an important role in that process.”
-- Liz Catchpole, Chief Financial Officer, SwissRe Life and Health Business Group
“With Oracle in place, our management now has a much better view
of the company. We only need to enter information once and can
then easily monitor and keep track of everything we do.”
-- Roberto Albert, Treasurer, Duferco
What Our Customers Are Saying…
“The obvious benefit of Oracle across the organization is seeing
everything going on at the same time. Everybody makes decisions
from the same data. The visibility allows us to optimize across the
entire business.”
-- Stephen Printz, Chief Information Officer, Pella Corporation
“Now that our operational data is integrated with Oracle Financials,
we can pull reports from Oracle Financials according to business
units, activities, or customers. Management has greater confidence
in the data because it comes from a single source.”
-- Sencer Salbas, IT Manager, Omsan Lojistik
“We selected Oracle Financials solution as it provides all our monthly
reports from a single source and with the use of encumbrance
accounting gives us the budgetary control we require.”
-- Mr. Géza Nevelos, IT Advisor, PSZAF
The Next Few Days
The Next Few Days…
 Recommended Sessions
– Best Financial Practices and Oracle Financials 11i Update
 Tuesday 11:00 S2 – Room 1
– Corporate Governance: International Accounting Standards
 Tuesday 14:30 S6 – Room 3
– Corporate Performance Management Overview
 Tuesday 16:00 S2 – Room 2
– Oracle General Ledger Overview and 11i Update
 Wednesday 10:30 S2 – Room 1
– Financial Intelligence Overview
 Wednesday 13:00 W23
– CPM: Enterprise Planning and Budgeting
 Wednesday 16:00 W7
– Oracle Spend Management Overview and 11i Update
 Wednesday 16:00 S2 – Room 1


The Next Few Days…
 Recommended Sessions
– Corporate Governance: Internal Controls Manager Overview
 Wednesday 17:15 W 7
– Enhance Your EBS ROI Through VAT Strategy & Automation
 Thursday 10:30 S6 - Room 3
– TCA & Customers Online Overview & 11i Update
 Thursday 10:30 S6 - Room 1
– Oracle Revenue & Receivables Mgmt. Overview and 11i Update
 Thursday 13:00 W 7
– Oracle Real Estate Management Overview and 11i Update
 Thursday 14:30 W 9
– Oracle Lease Management Overview and 11i Update
 Thursday 14:30 W 7
– Oracle Cash Management & Treasury Overview and 11i Update
 Thursday 16:00 W 7
The Next Few Days…
 Related Demo Stations
– Close Your Books Faster





General Ledger
Global Consolidation System
Globalizations
Shared Services
eTax
– Credit, Collections, Revenue & Receivables Management:







Receivables
Credit Management
Collections
Trade / Deductions Management
iReceivables
Bill Presentment Architecture
iPayment
The Next Few Days…
 Related Demo Stations
– Spend Management: Payables & Assets
 Payables
 Assets
– Cash, Treasury, & Risk Management:
 Cash Management
 Treasury
 Risk Management
– Self-Service Finance
 Internet Expenses
 iReceivables
– Real Estate & Lease Management
 Lease Management
 Property Manager
Where Can I Find Out More…
 Financial Management Related External Websites
– Oracle.com E-Business Suite homepage for Financials:
 http://www.oracle.com/applications/financials
– Oracle.com E-Business Suite homepage for Corporate Governance:
 http://www.oracle.com/solutions/corporate_governance
– Oracle.com E-Business Suite homepage for Customers Online/TCA:
 http://www.oracle.com/applications/technology
– Oracle.com entry point for Business Intelligence:
 http://www.oracle.com/solutions/business_intelligence
– AppsNet entry point for Financials:
 http://www.oracle.com/appsnet/products/financials
– AppsNet entry point for BI:
 http://www.oracle.com/appsnet/products/bi
Descargar

Revenue & Receivables Management (Long)