Awara IFRS Reporter © is a report building system that is flexible and easy to use for financial managers, controllers and accountants. The system that was intially implemented for ERP systems like Microsoft Dynamics NAV and the popular in Russia accounting software 1C is now available for most accounting software platforms in Russia.
New IFRS Standards
The IASB and FASB are proposing significant changes to financial statement presentation.
The new standards have set new requirements for presentation of financial statements, cash flow and performance in general.
The IASB aims to implement standardization during year 2012 and have it effectively running in 2014. It is highly recommended to adapt Russian financial departments to the new IFRS requirements. Awara assists in this matter by planning local operations to smoothly support this change and efficiently convert RAS to IFRS. Our IT solutions enable the efficiency of this process by implementing automated systems to support IFRS Reporting.
Business units that generate value will be separated from funding according to plans. This separation results in new classifications and categories of financial information, while the required financial information to be produced increases significantly. Managing disaggregation requires a serious new evaluation of IFRS Reporting functions for Russian entities.
Awara IFRS Reporter© – IT System for Automated International Reporting
Producing IFRS reports based on Accounting according to Russian Accounting Standards (RAS) is essential for foreign companies doing business in Russia, as well as for local companies aiming for international standards in e.g. in the area financing their operations. Russian accountancy has been modernized, and at first glance, seems to be close to international standards such as IFRS. In practice, however, things are very different as accounting in Russia is based on the method selected depending on the mode of taxation, while IFRS rests on the accrual basis.”. As a consequence Russian accountancy is fundamentally not compatible with international reports. To mitigate this issue, one of the most efficient solutions is to implement Awara IFRS Reporter© automated tools that enables easy, correct and efficient international reporting.
What problems does Awara IFRS Reporter© solve?
- In many cases, management reports are prepared based on some information that is poorly documented or not documented at all. This means that the unique knowledge of preparation of management reports is in the hands of only one person (who may leave the company) and that management reports are not documented.
- Undocumented mapping rules might lead to constant mapping changes and variability of rules in different accounting periods, which, in turn, may lead to data inconsistency in reports for several periods.
- Lack of documented rules leads to difficulties in reconciliation of management reports produced with RAS reports.
- Manual preparation of management reports is a time-consuming process and usually results in errors.
- Manual preparation of reports limits automated integration with other systems.
- Lack of analytical functionality of accounting systems limits the possibilities of preparing management reports within the scope of different analytical dimension values.
Awara IFRS Reporter© allows storing and plotting comprehensive records for rules of transformation (mapping rules) of Russian reports into GAAP and IFRS reports taking into account the differences in accounting standards.
- Awara IFRS Reporter© allows producing GAAP and IFRS reports with one click of a button.
- Awara IFRS Reporter© allows exporting from an accounting system to any ERP system with required data formats.
- Reconciliation of Russian accounting figures with the reports generated to meet audit and management needs.
- Awara IFRS Reporter© allows creating analytical reports, splitting the total amounts for each IFRS account into various dimensions (e.g., cost centers).
- Flexible software platforms for implementation.
- Does not make structural changes to the initial accounting database.
- Eliminates the errors of timeconsuming manual preparation of reports.
- Enables integration with other systems due high level of automation.
- Analytical approach to reporting of accounting due to usage of dimensioned values.
How does the system solve the problems?
This convenient report builder (as opposed to numerous inconvenient tools on the market) allows users to plot reports according to required mapping rules. The system maintains solid documented description of rules that define management report and thereby facilitates automation (which saves time and reduces the number of errors), as well as provides a way for reconciliation of generated reports with RAS figures. The flexible setup of analytical scope for the report allows building management reports through a variety of different dimensions and dimensioning values.
Transactions that are made in RAS within a defined level of dimension values are the main basis for reports. Additional transactions are made to the system apart from RAS, to support differences in accounting under IFRS and RAS. These additional accounting data may take the form of various accruals and adjustments, differences in depreciation rules, financial leasing, provisions, reserves, etc.
The System creates comprehensive reports showing total amounts for defined management (IFRS) accounts. The full audit-trail on the mapping rules allows knowing all transactions behind the totals. Also, the system allows splitting totals into analytical dimensions (e.g., cost centers) while providing the possibility to break down such figures as well. The system can export plotted reports to MS Excel data format or any other required.
Awara IFRS Reporter© is adaptable to any ERP system and Awara supports users to explore and fully benefit from the system. Awara also assists you in the full Life Cycle of producing international reports.
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