Odyssey Consulting Group has implemented a complex system of financial consolidation based on IBM Cognos Controller software product in one of the largest gas producing company NOVATEK
"NOVATEK is Russia's largest independent natural gas producer and second largest natural gas producer by production volume. Founded in 1994, the company is engaged in the exploration, production and processing of natural gas and liquid hydrocarbons. Its fields and license areas are located in the Yamal-Nenets Autonomous Region, the world's largest natural gas producer. The company accounts for more than 90% of Russian natural gas production and approximately 20% of global natural gas production.
In the course of the project, Odyssey Consulting Group and NOVATEK built a fully automated system for the preparation of the company's consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The introduction of IBM Cognos Controller allowed NOVATEK to create a unified data warehouse for consolidating all of its subsidiaries and provide simultaneous multiuser access to the financial consolidation model.
As a result of the project, the entire process of preparing financial statements was fully automated, from loading data from the primary accounting systems to generating the main forms and disclosures of the consolidated statements. In particular:
- currency conversion rules for the consolidation of foreign subsidiaries and the presentation of financial statements in different currencies were configured;
- chart of accounts, including four levels of different analytical directories was developed and configured;
- most transformational and consolidation adjustments were automated, including calculation and accrual of unrealized profit, elimination of intragroup investments and capital, intragroup balances and transactions, calculation and accrual of deferred taxes, minority interests and share in income of affiliated companies
There was also integration of IBM Cognos Controller with the existing IBM Cognos Business Intelligence system in terms of data transfer and building dynamic reports for financial analysis in the course of implementation.
"The new system is a powerful and flexible tool for preparing consolidated financial statements that meets the latest requirements of the investment community and regulatory authorities for providing timely, complete and reliable information," said Andrey Danilin, Head of NOVATEK's Consolidated Financial Reporting and Financial Analysis Department. - "The new system significantly reduces the time required to prepare the company's quarterly and annual consolidated financial statements, while allowing us to effectively allocate resources and monitor the fulfillment of tasks".
Andrey Danilin, Head of NOVATEK's Consolidated Financial Reporting and Financial Analysis Department
