Professional Contacts

Management accounting is not regulated by the national legislation of a country, but in order to receive full and reliable information, it must be organized in compliance with the generally accepted international principles. The company offers arrangement of management accounting in compliance with the international financial reporting standards: IFRS, US GAAP. The choice of the main accounting system (IFRS, GAAP) depends on the historically predetermined situation in the company, sometimes it is determined by requirements of foreign investors.

The expertise of IDelync’s experts in the field of management accounting and its automation allows to provide the following services:

• Developing a company’s financial structure;
• Building of the model of management accounting, setting up connections and means of exchange with other subsystems: bookkeeping, budgeting;
• Developing the main reporting forms, singling out the key indicators;
• Developing the key records: card of accounts, analytical profiles.

The required stages in a management accounting arrangement project are:

• Preparation of guidelines or recommendations as to arrangement of managerial document flow, regulations on coordinated action of a company’s services;
• Providing consulting support to a company’s employees on issues of implementation of the developed method of management accounting ;
• By arrangement with the Client – assistance in implementation of all developed documents, Company’s regulations.

IDelync offers the following options of arrangement of bookkeeping and tax accounting:

• “From scratch”. This service is recommended for companies at the stage of their creation or ultimate restructuring. Qualified arrangement of bookkeeping and tax accounting at this stage will allow to avoid mistakes and minimize financial risks related to violation of the existing rules and standards of bookkeeping and tax accounting of the Russian Federation.
• Arrangement of bookkeeping and tax accounting at an operating enterprise. This option is in demand as the preliminary stage preceding  accounting automation, when new kinds of activities appear or in case the accounting principles of the existing ones are changed.

Each of the offered options includes works on analysis of the current taxation scheme, a new scheme is developed or a list of measures for its optimization.

In the course of works, our specialists shall perform:

• analysis of peculiarities of the company’s activities and its current condition of bookkeeping and tax accounting;
• development of optimal taxation scheme for a specific company or recommendations as to optimization of the existing one;
• development (improvement) of the working Chart of Accounts and Accounting Policy in accordance with the company’s peculiarities;
• preparation of guidelines or recommendations as to organization of bookkeeping documents flow, regulations on coordinated actions of the company’s services in the area of bookkeeping and tax accounting;
• by arrangement with the Client – assistance in implementation of all developed documents, the Company’s regulations.

When performing the abovementioned works, IDelync’s experts try to take into account the future direction of the Company’s development: automation of bookkeeping, tax accounting as well as management accounting, thus ensuring an uninterrupted process of improvements in the area of accounting and organization of the Company’s activities.

IDelync offers services of arrangement of the budgetary process and budget modeling for companies from different areas of business.

By arrangement of budgetary process of a company we mean the following:

developing documentation regulating the organizational issues of budgeting: working out optimal financial structure of a company, determining the financial responsibility centres, their functions and areas of responsibility:

• budgeting and control regulations;
• developing documentation describing and defining methodological aspects of budgetary process accepted in a company – goals, tasks and budgeting principles; list of budgets, their kinds and formats;
• holding training seminars for a company’s responsible personnel engaged in the process;
• providing consulting support to a company’s employees regarding the issues of implementation of the developed budgeting technology;
• gathering, analysis and formalization of requirements to automation of the budgetary process (by a separate arrangement with the Client).

The qualifications of IDelync’s experts in the area of management accounting and its automation allows to provide services in budget modeling both within the framework of a separate project or as a stage of preliminary works  in projects of integrated automation of a company’s management accounting.

Therefore, the full cycle of implementation of the budgeting technology in a company consists of the following stages:

Stage 1. Identification of the company’s financial structure.

Stage 2. Development of a budgeting model.

Stage 3. Development of procedures for the budgetary process.

Stage 4. Automation of the budgetary process.

IDelync provides custom-tailored services to each Client and the complete list of the stages of works, their price and terms are determined on the basis of a company’s requirements.

There is a number of differences between the principles of accounting accepted in certain Russian and international standards.

For convenience, the existing differences can be divided into two groups:

• The first group of differences can be explained by the fact that some rules do not exist in Russia, for example, those related to business combination, depreciation of assets, financial instruments, etc.;
• The second group of differences can be explained by the fact that the Russian Accounting Standards (RAS) and the IFRS have different rules applicable to identical issues, for example, those related to finance lease, reserves, information disclosure in financial statements, etc.

Due to this, when IFRS financial statements are prepared on the basis of the RAS, it is necessary to perform restating. Restating stands for analysis of financial statements adopted by a Russian enterprise, making amendments required for preparation of a comprehensive financial report of the company, which would in general comply with the international financial reporting standards (IFRS, US GAAP).

The full packet of financial statements includes:

• Statement of financial condition (the Balance sheet);
• Statement of total revenue (complex profit and loss);
• Cashflow statement;
• Statement of changes of shareholder equity;
• Key accounting policies;
• Notes to the financial statements;

In the projects involving restatement of financial statements in compliance with the IFRS requirements, IDelync are guided by the principle of individuality of a Client, taking into account the specifics of Client’s activities, prospects of further development and dynamics of capitalisation of a Client’s company.

As a result, the financial statements prepared in accordance with the requirements of international standards may not only be used as financial statements for attracting additional funding or procedures of the company’s capitalization, but also as an instrument for:

• determining strategic key indicators;
• budgeting (planning) procedures in companies;
• financial analysis of attainability of the fixed indicators and assessment of dynamics of a company’s development;
• the mechanism of control of a company’s value.

Apart from financial statements, IDelync provides services of consolidation of financial statements for a group of companies.

The main purpose of preparing consolidated statements is presentation of activities of a holding or a group of interrelated organizations (mother, daughter and independent) as an activity of a single economic unit. A mother company submits consolidated statements in order to objectively and faithfully demonstrate to the owners what their investments are like, that is control and ownership of net assets of enterprises (IFRS 27).

The services of preparation and consolidation of statements may be completed on Client’s request with the services of development of regulations as well as with audit of international and Russian statements.

Business process is a number of logically connected repeated actions resulting in use of the enterprise’s resources for reprocessing the unit (physically or virtually) with a view to achieving specific measurable results or products in order to satisfy demands of internal or external consumers. In the event a company’s business processes are not built optimally, then each of the links of this chain will result in loss of resources (time, finances) and/or quality. 

As part of the service of “Arrangement and optimization of business processes”, our experts perform the following:

• carrying out high level review of an enterprise’s activity for identification of key business processes; assisting the Client in defining goals of improvement of business processes and their key success factors (assessment criteria of goal achievement of the business process being analyzed);
• describing key business processes and gathering additional information regarding them;
• analyzing business processes, determining “bottlenecks”. Basing on the gathered information, recommendations are developed aimed at their optimization, or arrangement of new business processes; executing the performed analysis in the form of a relevant document, describing the source information, analysis method used, its results (recommendations);
• taking decisions together with the Client regarding optimization of existing processes or implementation of new ones, assisting in performing required organizational changes and process readjustment (implementation), including personnel training.

Experience of IDelync’s experts as well as use of well-known and well-established methods of analysis, arrangement and optimization of business processes, allow to improve the enterprise’s quality of work through improvement of business processes, as well as prepare it for further automation.

The necessity of corporate optimization or building corporate structure may arise in the following situations:

• business restructuring: creation of holdings or their restructuring. At this stage it is important to pay attention to and correctly separate powers between managerial bodies of enterprises, establish cooperation in order to achieve a synergetic effect from the holding’s  activities;
•  necessity to optimize (reduce) the tax burden by means of distribution of functions among enterprises with different taxation schemes;
• enterprise’s owners’, investors’ need in increased control and management of hired top-management. Well- considered corporate structure and, most importantly, the system of corporate control will allow the company’s owners, investors to responsively control and receive reliable information regarding the holding’s activities even in conditions when personal participation in the enterprise’s work is not achievable.

In the framework of this service, IDelync’s experts conduct the following types of work:

• analysis of existing corporate structure;
• gathering, analysis and ranking of business requirements to optimization;
• development and description of optimized corporate structure (company’s units; connections between enterprises included into the structure; taxation schemes; managerial bodies and areas of their responsibility);
• assistance in implementation of the plan of required actions with a view to transition to the developed corporate structure.

Corporate structure optimization yields resources conservation of an enterprise, increased manageability of receipts and expenditures (in particular, tax payments), timely detection and reduction of influence of business risks, optimized capital structure and increased profitability of the company’s operations.

Russian enterprises currently have to resolve contradictions determined by imperfection of structural relations. There is a high level of depreciation of equipment, lack of own sources of finance, credit inaccessibility  due to high price of their provision, low buying power holding back demand for manufactured products. In this situation, enterprises are looking for inner resources and optimize their use.

In these conditions, one of the leading issues is that of analysis of the potential of development of business products and services, which allows to effectively use both existing and new business products. IDelync’s experts provide assistance in resolving this issue and determination of managed factors influencing an enterprise’s activity, develop advice on their restructuring, improvement of the inner structure and management mechanism. At the same time management of potential is the decisive factor, which in many aspects determines the strategy and ways of an enterprise’s development.

Investment assessment of value of business projects should be conducted for the following purposes:

• increasing efficiency of business projects;
• valuation of business projects in case of their buying and selling as a whole or by the subsystems;
• when an enterprise is being restructured or closed down;
• when working out a strategic development and degree of stability plan of an enterprise;
• for estimation of credit standing of an enterprise on the whole as well as the hypothecation value in case of crediting;
• tax assessment;
• when organising insurance cover in the course of which the necessity arises to perform valuation in anticipation of possible losses.

Professional definition of the purpose of assessment by IDelync’s experts allows to correctly choose business project assessment methods and determine the investment value of the facility objectively.

The company provides the following services of business valuation:

• Valuation of shares ( public corporation, close corporation):
• Company share valuation (limited liability company);
• Bank valuation;
• Insurance company valuation;
• Valuation of receivables;
• Valuation of bills of credit;
• Valuation of other securities (bonds, options, etc.).

Revaluation of fixed assets (for the purposes of transfer to IFRS reporting).

When choosing methods of financial modeling, IDelync closely cooperates with the client taking into account the peculiarities of his business and the those of the sector in general. Complex multiscenario models for investment analysis created by IDelync stand out for the highest possible level of detail of the structure of earnings and expenses based on in-depth study of modeled business processes and a detailed financial analysis.

The following factors are taken into account when a financial model is developed:  

• macroeconomic;
• financial structure;
• operating profit and expenses;
• utilization of loans and debt service;
• taxation and bookkeeping.

These factors are usually regarded as a “scope of assumptions” within which each direction of a financial model has been studied and the source of initial data or its calculations have been indicated.

Based on the initial data, a number of calculations is performed and relevant conclusions are drawn. The final result, as a rule, includes forward looking statements and key indicators of future activities.

IDelync offers services of Due Diligence as a part of assessments in the following fields:

Financial Due Diligence – analysis of an enterprise’s financial activities focusing on the company’s ability to make profit.This assessment is often performed simultaneously with the company’s audit, in the course of which the correctness of bookkeeping is established, alongside with the credibility of statements and other documents as well as their compliance with statutory acts.

Tax Due Diligence – tax analysis of the enterprise performed for the purpose of assessment of burden of taxation upon the company and identification of possibility to optimize the tax burden.

The main objectives of the treasury functions automation are:

• To decrease the labour-output ratio and reduction of the accounting information processing time;
• To increase reliability of information;
• To enable integration with different information data sources;
• To ensure prompt preparation of management reporting;
• To ensure efficiency and immediacy of control.

The main functional capabilities of the management information system of the "ID.Treasury":

1. Preparation and control of implementation of the financial plan;
2. Functionality to create the payment schedule;
3. Drawing up, analysis and approval of the register of payments;
4. Comparative analysis of the financial plan and the register of payments.

 The solution includes the following works:

• Long-term planning of payments – one year, month, week finance plans

Considering the fact that the process of the finance plans preparation involves many services of the company(Centre of Financial Responsibility), the solution allows to prepare finance plan templates in Excel and download them to the treasury module upon the filling of the budget by the supervisors.

• Short-term payments planning – payment schedule, requests for funds application

The payment schedule is created in the system by the Treasurer and is an optimal tool for distribution and payments control on the daily basis taking into account the payment schedule and availability of funds. The Treasurer takes the decision regarding the payments for the next several days on the basis of the Payment schedule, indicating which requests for payment will be finalized on which day and from which settlement account. At the same time, this document is the ground for drawing up the Payment Register document. The document has the functional for fast and convenient correction of payments. Moreover, it features the tools necessary for online processing of the document: group processing (for fast changes in properties of several payments at the same time), operating corrections (changes in the reflection of company’s financial situation in the overall balance) and snapshots (records of the financial condition of the company at a particular moment with further reconstruction of the whole picture for analysis of correctness of work of the financial service in general).

• Storage of the versions of the payment schedule, facilities for their comparison for choosing the best option

The snapshots of the financial condition are intended for saving the interim results of settlement accounts taking into account the payments. The Treasurer, recording the versions, demonstrates the results achieved at the moment of the snapshot. Later, these can be used for analysis of the payments planning process. The reports also allow to choose the snapshots (below referred to as versions) and show the condition of the payments at the moment of the version creation.

• Approval of payments

The approval process takes place upon agreement of all payments. Then the approved payment register is created. The main schedule and registers may have specifying schedules and registers.

The Payment Register is the document to be approved and acts as the final point of payment planning. Upon approval of the document, it is impossible amend the requests for expenditure included into this payment register and payment schedule, on the basis of which the payment register was created.

The payment register contains payments which will be performed on the date of the payment.

Automation of the budgeting process with the use of the ID.Budgeting MIS ensures performance of the following tasks:

1. Drawing up the master budget of the company consisting of the income and expense budget, cash flow budget, payment schedule (operating plan of execution of the cash flow budget), pro forma balance sheet and other budgets. The drawing up of budgets may be performed in accordance with different scenarios on the basis of the target or actual data for the prior periods.
2. Planning of the monetary funding and controlling the financal condition of the enterprise for any period with a breakdown into turnover of individual items using the necessary analytical breakdowns.
3. Controlling the correspondence of the actual data with the set target indicators.
4. Controlling the correspondence of the current schedule of application of resources with the working schedule for the period and analysis of fulfillment of the budget requests.
5. Drawing up consolidated accounts based on the result of monitoring and multivariate analysis of deviations of the actual data from the target indicators.

Additional features of the “ID.Budgeting” MIS:

Integration of the data from the financial accounting information system with the MIS – the actual data of the budgetary accounting is integrated from the financial accounting information systems, which allows to avoid repeated information input.

The automated business process of “Change Management” provides feedback between the budget and the supporting primary accounting documents.

The control of execution of the budget can be performed virtually at any point of the business process of the enterprise. Five main points can be singed out, in which the execution of the budget can be checked and immediate actions aimed at prevention of deviations of the actual indicators from the target ones can be taken.

Reporting. Multipurpose settings of the reports allow to prepare any reports with arbitrary analytical breakdowns and with different level of itemization. Moreover, the use of the required analytical breakdowns allows to assess the efficiency of different business lines.  The plan-fact analysis can be built for each separate budget or a random list of items. This kind of report can be prepared on the basis of separate analytic objects: Centre of financial responsibility, contractor, etc, which allows to itemize the deviations.

Additional distribution procedures. It is not always possible to determine all the required analytics at the moment of posting of the actual dynamics of an item. Distribution into the preset algorithms is provided for this kind of cases. Distributed data is recorded under a different scenario, which allows to compare the data before and after the distribution.

The essential condition for the companies trying to attract foreign investment is preparation of IFRS reports. It is extremely important not just to obtain the reports, but rather make these reports an effective tool for analysis and support in taking management decisions.

Building the IFRS accounting model in the Company contains several stages:

• Developing the accounting policy of the Company. The accounting policy regulates all aspects of the technology of preparation of financial statements: the main components of the reports, choice of the reporting currency, description of the transformation technology from fully functional currencies (if they are used) into the reporting currency, requirements to preparation of forms of group reporting for the Group members, etc.
• Developing the Regulations on gathering and processing of information. This document assigns distribution of duties and the corporate regulations on gathering and processing of information during preparation and drawing up of statements.
• Choosing, setting up and implementing the tools for preparation of financial statements. At this stage, the Company has to establish which tools it will be using for preparation of the financial statements on time and with the required level of detail.

IDelync experts, using their own experience in preparation of financial statements as the basis, as well as their excellent knowledge of our clients’ requirements to these statements, have developed an automated solution for maintaining IFRS accounting and preparation of statements.

In contrast with the most widely spread model of maintaining the accounting in Excel, this solution gives the opportunity to immediately receive “decoded” information on the items of the statements and “submerge” to each transaction or posting (which is quite often required for analysis of the situation).

Thus, significant saving is achieved by means of completeness and substantiveness, timeliness and consistency of the automatically generated IFRS reports. This means that the specialist of financial service will be able to make analysis more effectively and take timely decisions.

On the whole the solution allows to:

• Automate processing of a greater amount of operations of the same type at the moment of transformation of RAS data into IFRS accounting (entry mapping), which allows to minimize the labour intensiveness of the IFRS accounting maintenance;
• Itemize the reporting data before the primary discount transaction, which makes the process of checking the  IFRS accounting data and collation of the RAS and IFRS data much easier;
• Maximally decrease the influence of the human factor onto the final result of transformation of accounting data due to automation and control of preparation of statements;
• Obtain the required analytical breakdown of the finalized statements.

The process of preparation of the consolidated financial statements in accordance with the requirements of the international standards by means of the “IFRS management accounting” solution includes the following stages:

• Gathering the data of prime records in accordance with the requirements of the Russian legislation and its transformation into IFRS prime records;
• Necessary alterations and missing primary information are added into the IFRS prime records obtained in the manner described above;
• The accounting data is consolidated and in the end, the consolidated statements are prepared.

The advantages of this Solution:

• The solution is implemented on the basis of 1C:Enterprise, which enables use of all the advantages of this platform: accessibility, scalability, open code.
• Functionality to use different information systems (1C, “Info-Buhgalter”, “Turbo-Buhgalter”, “Parus”) as information systems which are primary information sources.
• The functional of the system allows to set up accounting in compliance with the IFRS principles regarding “Property, Plant and Equipment”, intangible assets, inventories, which significantly simplifies the procedure of making adjustments (depreciation calculation, asset revaluation, accrual of reserves) with respect to these accounting entities.
• The flexible system of set up of templates of financial statements and data unload into Excel accounting. There is a dedicated directory of elements of financial statements, in which the statements structure and the information source for each item of the statement are specified. On the basis of the specified structure, an Excel report template is generated automatically and it is further automatically filled in with the Solution data.
• Roll-out of the values of the reports into consolidation tables is provided for by the mechanism of the Solution, which allows to obtain different management reports on the basis of the consolidation tables.
• Functionality to single out the intracompany balance and prepare consolidated group statements.

The final solution and the terms of IFRS accounting automation are exclusively individual for each company. IDelync pays special attention to organization of works for preparation of the Company for the implementation, staff recruitment and training. In the course of implementation, operating and management processes in the company, document flow and financial accounting are analyzed, as well as the existing and operating information systems and technologies. The management system, put into the basis of the organization of the project works, intended for development process and implementation of complex systems and Rational Unified Process software, allows to integrate different software into a unified integrated MIS and obtain IFRS statements of adequate quality.

Significant practical experience of IDelync experts in synergy with the theoretical knowledge, allow to find adequate alternative solutions for creating an IFRS accounting system for any one occasion.