OREANDA-NEWS. February 11, 2011. SIBUR Holding has implemented Unified Reporting System with the assistance of IBS Borlas. The automated solution works based on Oracle Hyperion applications and enables to prepare both IFRS accounting and management accounting statements, reported the press-centre of IBS.

Along with business growth and emergence of new enterprises in SIBUR Holding structure the need in up-to-date reporting system that could promptly and correctly generate accounting statements required by executives of the holding became evident. Former management reporting systems and IFRS (International Financial Reporting Standards) accounting system were not interconnected, which made the task of analyzing Holding activities more complicated.

Based on the results of open tender, the implementation of project of Unified Reporting System (URS) development was awarded to IBS Borlas specialists, who had experience in development and implementation of such solutions for large geographically distributed business structures.

The project comprised development of the following solutions for SIBUR Holding:

Unified system of generation and consolidation of reporting based on Oracle Hyperion Financial Management (both for management and IFRS accounting);

Data collection solution from operating units of the holding based on Hyperion Financial Data Quality Management.

The project was completed in 15 months. The main part of system development works was carried out in SIBUR head office, after which the system has been replicated to corporate structure. Currently the Unified Reporting System was accepted to regular operation and currently encompasses over 100 operating units of the holding.

The application of single system will allow to unify the information received from holding enterprises, increase reliability of financial data, cut down labor intensity and reduce the time required for preparation of consolidated accounts of JSC SIBUR Holding. The transparency of reporting generation process and its quality plays a key role for shareholders, investors and auditors.

According to SIBUR Holding Auditor Lyudmila Zakharova: “We’ve reached the set goal – ensuring consistency of management accounting and financial accounting in accordance with IFRS. This provides considerably wider opportunities to SIBUR management company’s executives in terms of subsidiaries' performance control, analyzing their accounting statements and planning future activities of the holding based on this information. Our next task is to build complete integration of URS with standard solution of 1C accounting system implemented within the framework of the project of consolidation of accounting functions and creation of business service center”.

In turn, Head of CPM Practise of IBS Borlas Sergey Khlevnyuk commented that he was glad to hear that leading Russian companies started implementing Corporate Performance Management (CPM) solutions. “Changeover to CPM-solutions allows large geographically distributed industrial holdings to standardize data acquisition from different business applications of subsidiary companies to a single system and conduct financial modeling, planning, consolidation and reporting in this system” – noted Sergey Khlevnyuk.

Summarizing the project, IT Director of OAO SIBUR Holding Dmitry Gorbachev stated that: “Development of Unified Reporting System was another step towards implementation of SIBUR Holding IT strategy aimed at implementation of leading management technologies in ativities of holding’s enterprises. Choosing the most efficient solutions in every class and improving holding’s activities with the help thereof, we’re getting close to implementation of its global mission – winning competitive market positions and transformation of holding into world-class petrochemical company”.