BPC_NW_IFRS_DEG_201011

SAP® BUSINESSOBJECTS™ PLANNING ANDCONSOLIDATION 7.5, VERSION FOR SAP NETWEAVER

STARTER KIT FOR IFRS Data Entry Guide

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ContentsChapter 1 Contents ............................................................................................................................. 3

Chapter 2 Data Entry Navigation ........................................................................................................ 5Data Entry Format ................................................................................................................ 5

Links Between Schedules .................................................................................................... 6

Graphic Charter.................................................................................................................... 6

Languages ........................................................................................................................... 6

Chapter 3 General Data Entry Principles ........................................................................................... 7Signs.................................................................................................................................... 7

Order of Data Entry .............................................................................................................. 7

Flow Entry ............................................................................................................................ 7

Flows for Current Transactions ..................................................................................... 7

Flows for Specific Operations ....................................................................................... 8

Consolidation Flows Dedicated to Equity Method Companies ....................................... 8

Local Adjustments ................................................................................................................ 8

Chapter 4 Data Entry Schedules......................................................................................................... 9Balance ................................................................................................................................ 9

Input Schedules for Flow Analysis ...................................................................................... 11

Non-Current Non-Financial Assets ..................................................................................... 11

Property, Plant and Equipment ................................................................................... 11

Investment Property ................................................................................................... 13

Intangible Assets ........................................................................................................ 14

Biological Assets ........................................................................................................ 15

Financial Assets ................................................................................................................. 16

Investments in Subsidiaries ........................................................................................ 16

Financial Receivables................................................................................................. 18

Other Financial Assets ............................................................................................... 19

Cash and Cash Equivalents ....................................................................................... 20

Other Assets ...................................................................................................................... 21

Inventories ................................................................................................................. 21

Other Assets .............................................................................................................. 22

Net Equity .......................................................................................................................... 23

Equity Statement ........................................................................................................ 23

Dividends Paid ........................................................................................................... 27

Liabilities ............................................................................................................................ 28

Contents

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Provisions .................................................................................................................. 28

Debts and Payables ................................................................................................... 29

Other Financial Liabilities............................................................................................ 30

Other Liabilities .......................................................................................................... 31

Net Equity EM .................................................................................................................... 32

Equity Statement for Equity Method Companies ......................................................... 32

Chapter 5 Hotschedules ................................................................................................................... 33Specific Operations ............................................................................................................ 33

Intercompany - Single Account Detail ................................................................................. 34

Intercompany Input Balance ............................................................................................... 35

Intercompany – Balance Sheet ................................................................................... 35

Intercompany – Income Statement ............................................................................. 35

Chapter 6 Data validation.................................................................................................................. 36

Procedure .......................................................................................................................... 36

Control Flows vs Account ................................................................................................... 36

All Controls ........................................................................................................................ 36

Accounting ................................................................................................................. 37

Variation ..................................................................................................................... 37

Intercompany (Balance Sheet) and Intercompany (Profit and Loss) ............................ 37

Data Entry Navigation

Data Entry NavigationThe starter kit for IFRS contains a preconfigured Business Process Flow (BPF) for data entry which guidesthe business end-user through the data collection process and the different data input schedules.

This Business Process Flow helps understand the logical order of the data entry schedules, how to run thevalidation controls as well as the actions to be performed once the data entry and validation has beencompleted.

A Business Process Flow is identified by the following:

Dimension Description

Category The reporting scenario for which data is entered.

In the starter kit, the category for the statutory consolidation is ACTUAL –Actual from GL.

Entity The entity for which data is entered.

Time The period for which data is entered.

A standard BPF for data entry, L1 – Data Entry – Standard, is available in the starter kit for IFRS. Itincludes all input schedules to be filled in to do a complete reporting:

All companies, except those consolidated using the equity method, should fill in all standardschedules.

Companies consolidated using the equity method should only fill in the schedule Net equity for EMwhich includes the net equity analysis and the breakdown of dividends paid by shareholder.

Moreover, this schedule enables consolidated data entry for companies using the equity methodwhich are themselves holder of consolidated investments.

The person in charge of the consolidation process should instruct each data entry user on which schedulesto fill in.

Data Entry FormatData entry schedules are organized into workbooks ordered according to their content. For example, theschedule Financial Receivables belongs to the workbook Financial Assets.The different types of schedules include:

Schedule categories Description

Data entry These schedules are grouped into workbooks according to the type ofinformation required, like balances, non-financial assets and net equity.

Hotschedules Only accessible by link (intercompany, specific operations).

Controls Control schedules to validate the coherence of the information enteredin the data entry schedules.

Data Entry Navigation

Links Between SchedulesMoving between the various input schedules is assisted by:

The Business Process Flow

Links from balance and flow analysis schedules to access Intercompany and Specific Operationsfor entering further information.

EVHOT links enable direct access to other schedules for entering further details by double-clicking the cell:

Specific Operations Balance links are available in all flow analysis schedules providing directaccess to the Specific Operations schedule for entering information on specific flows.

IC Link blue links available by account in the Income Statement and all flow analysis schedulesgive access to entering breakdown information by partner separately for each intercompanyaccount.

IC Input Balance links available in the Balance gives direct access to the Intercompany InputBalance for entering breakdown information by partner for all balance sheet and profit and lossaccounts.

Graphic CharterThe formatting impose certain rules on the schedule presentation in order to keep the data entry coherentand guide the business end-user through the data entry process.

Data should not be entered in a cell if any of the following applies:

The given account/flow cross-over is not authorized. For example, an increase in depreciation (flowF25) is not relevant for tax accounts.

The cell contains a calculation formula, for instance an aggregation.

The cell contains opening balance data on the opening flow.

The actual format of the cells indicates the data type:

Cell format Description

Hatched The account/flow crossover is not authorized.

Colored filland bold font

The cell contains a subtotal resulting from a calculation formula, for instancean aggregation.

LanguagesSchedules are available in 3 languages: English, German and French.

Language selection is possible within the Guide worksheet of each input workbook.

General Data Entry Principles

General Data Entry PrinciplesSigns

Assets are entered as positive amounts, except for depreciations, amortizations and provisionswhich are entered as negative amounts.

Equity and liabilities are entered as positive amounts.

Expenses and income figures are entered as positive amounts.

Order of Data EntryThe Business Process Flow for data entry and the links beween the different input schedules guide theend-user through a step-by-step approach for entering data:

The order is:

1. Closing balances (Income Statement, Assets, Equity and Liabilities)

2. Period movements (breakdown by flow)

3. Intercompany details

Flow EntryAnalysing data by flow makes it possible to identify variations in the balance sheet between the openingand closing position, and thus enable the calculation of statement of cash flows line items. Flows availablein data entry schedules are classified into the following categories:

Flows for current transactions

Flows for specific operations

Consolidation flows dedicated to companies using the equity method

Flows for Current TransactionsVariations in balance sheet accounts, excluding net equity:

F15: net variation, for balance sheet accounts, such as trade receivables, for which a distinctionbetween increase and decrease is not necessary

F20: increase, for investments, loans and borrowings

F25: allowance on amortizations/depreciations/impairments/provisions

F30: decrease as a result of disposal or repayment

F35: write-back of impairments/provisions

F40: subscription to capital increase

F50: account reclassification

F55: fair value adjustment, increase and decrease

Changes in shareholder equity:

F06: dividends paid

F10: net profit for the period

General Data Entry Principles

F20: specific operations on treasury shares, hedging reserves

F30: specific operations on treasury shares, fair value reserves and hedging reserves

F40: capital increase

F50: account reclassification

F55: impact on reserves of fair value adjustments

Flows for Specific OperationsTwo specific operations are identified in dedicated flows:

F09: changes in accounting policies

F70: mergers

These transactions can be entered in each schedule or in a dedicated schedule, Specific Operations,which can be accessed via links from each flow analysis schedule. This schedule also includes thereclassification flow, F50, which can be filled in across a complete balance sheet.

The balance of flows F09 and F50 (assets = liabilities) as well as the balance of flow F70 (assets - liabilities= impact on account P1620 - Merger result) are subject to controls. For more information about datavalidation controls, see the section on Data Validation.

Consolidation Flows Dedicated to Equity Method CompaniesConsolidation flows dedicated to companies using the equity method which are holders of consolidatedinvestements relate to:

The impact of currency translation adjustment: flow F80

The impact of scope changes:

F01: incoming entities

F92: financial interest changes of subsidiaries which are consolidated using the full method

F98: outgoing entities

Local AdjustmentsData entry is normally done using the INPUT – Input Data audit ID. However, local adjustments can alsobe entered in input schedules using the audit ID INPUT11 – Adjustment to Group accounting policies.

Information on the audit ID selected is available in the upper left corner of each schedule.

Only one leaf level audit ID (INPUT or INPUT11) must be selected for data entry and it is possible toretrieve the sum of the audit IDs INPUT and INPUT11 by selecting the node ALL_INPUT.

Data Entry Schedules

Data Entry SchedulesData entry schedules are organized into workbooks.

For each schedule, the following information is outlined:

Section Description

Purpose Brief description of the contents

Prerequisites List of schedules to be completed first for the schedule to be relevant

Subsequent data entryrequirements

Breakdown schedules to be filled in afterwards

Data entry principles Flows and accounts

Note Controls to be carried out before closing the schedule

BalanceThe workbook Balance includes the following data entry schedules:

Income Statement

Assets

Equity and LiabilitiesThese are the first schedules in which to enter data or, in the case of a data interface, the first schedules tobe checked before any additional entries are made.

Note: When an entity is consolidated for the first time, the opening balance (F00) must always begenerated from the closing position of the previous year (using the data manager package Copy Opening).The opening position F00 should never be entered. (See the operating guide for further information onincoming entities and first consolidation.)

Two options are available in each worksheet of the Balance schedule to modify the expansion:

o Subtotals: this check box alters the built-in option SumParent for retrieving subtotals in theaccount expansion in rows.

o Indentation: this check box applies an indentation to the account description according to theaccount level.

Click on the “Expand and Format” button to apply any new settings.

Example: Business Units

When entities are split into business units, the net income of the legal company is split into business units,whereas other net equity items are assigned to the primary business unit. The overall balance sheet is notsplit by business unit and certain balance sheet items remain with the primary business unit.

This example illustrates how to balance the balance sheet entered by business unit using balancingaccounts, and how to transfer the net income of each business unit to the net equity of the primarybusiness unit.

Subsidiary S is split between business units S1 and S2, and the net income of the data entry period isassigned to S2.


Closing balances are as follows:

Income statementUnit S1 Unit S2

The net income of business unit S2 is transferred to the net equity of the primary business unit S1 via thenet income balancing account.

AssetsUnit S2

Equity and liabilitiesUnit S1 Unit S2

The balance sheets of the primary business unit and the other business units are balanced assetsversus liabilities in the balance sheet balancing account.


Input Schedules for Flow AnalysisThe following input schedules allow for the analysis of changes in the balance sheet between opening andclosing of the data entry period.

The principles are:

For all balance sheet accounts, flow F15 – Net variation is calculated as the difference betweenopening and movement flows.

The analysis of changes by flow is required for most assets and liabilities in order to build thestatement of cash flows. For these accounts, the flow F15 – Net variation identifies the totalvariation to be broken down by flow. In the schedules, the flow F15 will in this case be placed at theend of the expansion and the data cells will be hatched indicating a non-authorized account/flowpair.

For certain assets, like receivables, and liabilities, like loans, the distinction between increase anddecrease is not necessary. The variation between the opening and closing positions is thus fullyallocated to the flow F15 - Net variation. In the schedules, the flow F15 will in this case be placed atits natural position in the expansion.

The flow analysis schedules should be completed after entering the closing balances (Balance schedule).In the event that a change in accounting policies or a merger transaction take place during the data entryperiod, it is recommended to enter data in the schedule Specific Operations before completing the otherinput schedules.

All input schedules are outlined below with each worksheet appearing according to how it is organized inthe workbook.

Non-Current Non-Financial Assets

Property, Plant and Equipment

PurposeAnalysis of the changes in property, plant and equipment.

PrerequisitesSchedule Balance – worksheet AssetsSchedule Specific Operations (if relevant)

Data entry principlesFor changes in gross book value:

Flow F20 is used for acquisition or activation of new property, plant and equipment

Flow F30 is used for disposal of property, plant and equipment

Flow F55 is used for the impact of the faire value when property, plant and equipment areevaluated with this method

For depreciation:

Flow F25 is used for the allowance of the period

Flow F30 records the outflow of accumulated amortization on the date of sale

Flow F55 is used for depreciation adjustment when property, plant and equipment is evaluatedwith this method (see example below)


For impairment:Flow F25 is used for the allowance of the period

Flow F30 records the outflow of accumulated impairment on the date of sale

Flow F35 is used for the write-back of impairment

For specific operations*:

Flow F50 is used for:

Account reclassification

Writing off fully depreciated property, plant and equipment

Flow F09 records the impact of a change in accounting policies

Flow F70 is used in the context of merger operations

*Specific operations can also be entered in the schedule Specific Operations, accessed via schedulelinks.

Example

Company F owns a building with a net book value of 900 (Gross book value = 1000 and depreciation =100). The fair value of the building is evaluated at 1200.

The company applies the revaluation method for this type of assets.

The worksheet Property, plant and equipment should be filled in as follows:

NoteThe F15 – Net variation column, which shows the difference between the total variation and variationsanalyzed by flow, must equal 0 for all accounts.


Investment Property

PurposeAnalysis of the changes in investment property.

PrerequisitesSchedule Balance – worksheet Assets

Schedule Specific Operations (if relevant)

Data entry principlesFor the changes in the gross book value:

Flow F20 is used for acquisition or activation of new investment property

Flow F30 is used for disposal of investment property

Flow F55 is used for the impact of the faire value when investment property is evaluated withthis method

For depreciation:


Flow F30 records the outflow of accumulated depreciation on the date of sale







Writing off fully depreciated investment property






Intangible Assets

PurposeAnalysis of the changes in intangible assets.




Flow F20 is used for acquisition or activation of new intangible assets

Flow F30 is used for disposal of intangible assets

Flow F55 is used for the impact of the faire value when intangible assets are evaluated with thismethod

For amortization:


Flow F30 records the outflow of accumulated amortization on the date of sale

Flow F55 is used for amortization adjustment when intangible assets are evaluated with thismethod (see example for Property, plant and equipment)

For impairment:





Flow F50 is used for


Writing off fully depreciated intangible assets






Biological Assets

PurposeAnalysis of the changes in biological assets.

PrerequisitesSchedule Balance – Worksheet Assets



Flow F20 is used for acquisition or activation of new biological assets

Flow F30 is used for disposal of biological assets

Flow F55 is used for the impact of the faire value when biological assets are evaluated with thismethod

For depreciation:


Flow F30 records the outflow of accumulated depreciation on the date of sale







Writing off fully depreciated biological assets






Financial Assets

Investments in Subsidiaries

PurposeAnalysis of variation in value of investments in subsidiaries.

PrerequisitesNone

Subsequent data entry requirementsBreakdown by share of investments in subsidiaries: schedule Intercompany

Data entry principlesThe transactions entered in account A1810 - Investments in subsidiaries, JV and associates and A1812- Investments in subsidiaries, JV and associates, impair. must be broken down by share in theschedule Intercompany, accessed via the blue IC link links.

For investments in subsidiaries, JV and associates:

Flow F20 is used for investment purchases

Flow F30 is used for disposals

Flow F40 is used for subscriptions to capital

Flow F55 is used, if necessary, for fair value entries of the data entry period

For impairment:Flow F25 is used for impairment

Flow F30 is used to reverse impairment when the share is sold

Flow F55 is used, if necessary, for fair value entries of the data entry period


Flow F50 may be used for item movements or within the account for reclassification of shares(see example 2)

Flow F09 records the impact of a change in accounting policies on share evaluation



Example 1: Entering data in merger-related flows

Entity A takes over entity B retroactively at 01/01/N. Data is as follows:

- The value of B securities held by entity A at 31/12/N-1 amounts to 1000- Prior to the merger, entity A purchased entity B securities for the amount of 200- B contributes with a securities portfolio comprising shares in C for the amount of 100 and in D forthe amount of 300


Data entry in the worksheet Investments in subsidiaries for entity A is as follows:

The breakdown by share of investments in subsidiaries in the schedule Intercompany for entity A isentered as follows:

Example 2: Investments previously held in an entity which enter the group consolidation scope

Entity A has bought securities in company B in N-2 for 500. Company B enters the consolidation scope on01/01/N.

For entity A, data entry period N, the worksheet Investments in subsidiaries is entered as follows:

The breakdown by share of the investments in subsidiaries in the schedule Intercompany for entity A isentered as follows:

NoteThe F15 – Net Variation column, which shows the difference between the total variation andvariations analyzed by flow, must equal 0 for all shares and for the account total.

The total amount declared by share must not exceed the total of the account.


Financial Receivables

PurposeAnalysis of the changes in financial receivables.



Subsequent data entry requirementsBreakdown of financial receivables by partner: schedule Intercompany

Data entry principlesFor receivables gross value, changes are allocated to flow F15. It is possible to post manually allor any of the variation on other flows, and flow F15 is updated automatically.

For allowances for bad debts:

Flow F25 is used for the allowance of the data entry period,

Write-backs should be entered on the flow F35.

Flow F55 is used for the impact of the fair value.

Flow F50* is used for account reclassification. It is notably used when transferring a non-currentasset into a current asset.

Flow F09* records the impact of a change in accounting policies

Flow F70* is used in the context of merger operations


NoteThe F15 – Net variation column, which shows the difference between the total variation and variationsanalyzed by flow, must equal 0 for the bad debts account allowances.


Other Financial Assets

PurposeAnalysis of the changes in other financial assets:

Loans and cash advances and related allowances

Derivatives

Financial assets at fair value through profit or loss

Other financial assets including those for sale


Subsequent data entry requirementsBreakdown by partner of loans and cash advances and related allowances: schedule Intercompany

Data entry principlesFlow F20 is used for increasing financial assets corresponding to monetary transactions, likepurchasing securities and granting loans

Flow F30 is used for decreasing financial assets, like disposal and repayment

Flow F25 is used for allowances for bad debts

Flow F35 is used for write-backs, justified by the decrease or the end of the risk

Flow F55 is used for the impact of the fair value

Flow F50* is used for account reclassification, notably when transferring a non-current asset into acurrent asset.






Cash and Cash Equivalents

PurposeAnalysis of the changes in cash and cash equivalents.


Schedule Balance – worksheet Equity and LiabilitiesSchedule Specific Operations (if relevant)

Data entry principlesThe variation between the opening and closing position is automatically posted on flow F15. It ispossible to manually post all or any of the variation on other flows and flow F15 will automaticallybe updated.

Flow F55 is used for the possible impact of fair value


Flow F50* is used for account reclassification.





Other Assets

Inventories

PurposeAnalysis of the changes in inventories.



Data entry principlesThe variation between the opening and closing position is automatically posted on flow F15. It ispossible to manually post all or any of the variation on other flows and flow F15 will automaticallybe updated.

Flow F25 is used for inventory depreciation

Flow F35 is used for write-back of inventory depreciation



Flow F50* is used for account reclassification, notably when transferring a non-current asset into acurrent asset




Other Assets

PurposeAnalysis of the changes in other assets.


Data entry principlesThe variation between the opening and closing position is automatically posted on flow F15, exceptfor the account A3000 - Non current assets and disposal groups held for sale. It is possible topost manually all or any of the variation on other flows and flow F15 will automatically be updated.

Flow F30 is used for the disposal of assets or groups of assets



Flow F50* is used for account reclassification, notably when transferring a non-current asset into acurrent asset. Account A3000 - Non current assets and disposal groups held for sale is enteredusing the flow F50 to reclassify assets or liabilities.



NoteThe F15 – Net variation column, which shows the difference between the total variation and variationsanalyzed by flow, must equal 0 for account A3000 - Non current assets and disposal groups held forsale.


Net Equity

Equity Statement

PurposeAnalysis of variation of shareholders’ equity.

PrerequisitesSchedule Balance – worksheet Equity and Liabilities


Subsequent data entry requirementsBreakdown of dividends paid per shareholder: Schedule Net Equity – worksheet Dividends paid

Data entry principlesFlow F06 records distributions made during the data entry period. The total distribution impacts theappendix account XE1610 - Dividends paid (with opposite sign) which is presented in theworksheet Dividends Paid within the same workbook. It can be accesed by following the link in theworksheet Net Equity to enter the analysis of dividends paid by shareholder.

Flow F10 corresponds to the net income flow and therefore only relates to account E1610 -Retained earnings. It is automatically filled in when the income statement is entered.

Flow F40 is used to recognize capital increases or reductions made in cash, however:

Capital increases made by incorporation of reserves or loans are recorded on flow F50 (seeexample 1)

Capital increases in the form of assets contributed in kind or in the context of mergers arerecorded on flow F70Reductions in capital by offsetting debit retained earnings are recorded on flow F50*

For treasury shares (Account E1310): the flow F20 is used for purchase and the flow F30 is usedfor disposal of treasury shares (see example 2).

For revaluation surplus (accounts E1510 - Revaluation surplus, before tax and E1511 - Incometax on revaluation surplus):

The flow F55 is used to enter the impact on reserve of fair value adjustment for property plantand equipment and intangible assets (when the entity chooses the revaluation model as itsaccounting policy) and the related tax effect.

The flow F50* is used to transfer revaluation surplus into retained earnings (account E1610),due to the disposal of the revalued asset or due to the asset depreciation.

For actuarial gains and losses (accounts E1520 - Actuarial gains and losses, before tax andE1521 - Income tax on actuarial gains and losses):

The flow F55 is used to enter the share of actuarial gains and losses on retirement benefitobligations recorded in comprehensive income according to the option proposed by IAS 19(Article 93) and the related tax effect.

The flow F50* is used to transfer these amounts into retained earnings in order to empty thesuspense account (see example 3).


For hedging reserves (accounts E1540 - Hedging reserve, before tax and E1541 - Income taxon hedging reserve):

The flow F55 is used to enter the share of gains or losses on hedging instrument that isdetermined to be an effective hedge and the related tax effect.

The flows F20 and F30 allow reclassification adjustment (recycling):

F20 is used to remove any gain or loss that was previously recorded from hedging reserves andto include it in the initial cost of the acquired asset or liability

F30 is used to transfer the gain or loss previously recorded in equity to profit and loss in thesame period in which the hedged cash transaction affects profit and loss

For fair value reserves (account E1550 - Fair value reserve, before tax and E1551 - Income taxon fair value reserve):

The flow F55 is used to enter the impact of fair value changes on available for sale financialassets,

The flow F30 is dedicated to reclassification adjustment (recycling) of the cumulative gain orloss when the assets is disposed of (see example 4).


Flow F70* records capital increases in the form of assets contributed in kind or in the context ofmergers


Example 1: “Seesaw effect” on capitalCompany A increases its capital by incorporating a loan for the parent company for the amount of 1000,then reduces it by the same amount to offset the debit balance brought forward.

Extract of schedule Liabilities – worksheet Other Financial Liabilities:

Entering data in the schedule Equity statement:


Example 2: Treasury sharesAt the beginning of the year, entity A buys 1000 of its own treasury shares for 100. At the end of the year,entity A sells 200 shares for 24.

Schedule Equity statement is entered as follows:

Example 3: Actuarial gains and losses

Company A recognizes an actuarial difference of 100 on its provision for employee benefits measurement.

Entries are made in schedule Liabilities – worksheet Provisions as follows:

The impact on net equity should be entered as follows:


Example 4: Fair value reservesAn asset is purchased during the period N for an amount of 1000. On 31/12/N, its fair value is measured to1100.

The item is entered in schedule Other Assets - worksheet Other Financial Assets as follows:


On 01/01/N+1, the asset is disposed of for 1110.

The amount is entered in schedule Other Assets – worksheet Other Financial Assets as follows:




Dividends Paid

PurposeAnalysis of dividends paid by shareholder.

PrerequisitesSchedule Net Equity – worksheet Equity statement

Data entry principlesThe total amount of dividends paid, previously entered in account XE1610 - Dividends paid in the netequity, populates the first row of the worksheet.

Holding companies receiving dividends should be added below the All Intercompany row in order to enterdividends paid by shareholder. Dividends paid to non-consolidated companies should not be entered.

NoteThe total amount declared for intercompany must not exceed the total of the account.


Liabilities

Provisions

PurposeAnalysis of the changes in provisions.

PrerequisitesSchedule Balance – worksheet Equity and LiabilitiesSchedule Specific Operations (if relevant)

Subsequent data entry requirementsAnalysis of intercompany provisions by partner: schedule Intercompany

Data entry principlesFlow F25 corresponds to allocations over the data entry period

Flow F35 corresponds to write-back over the data entry period

For provisions for employee benefits, flow F55 is used for entering the impact of actuarial gains andlosses included in comprehensive income (see the example for schedule Equity statement)Flow F09* records the impact of a change in accounting policies

Flow F50* is used for account reclassification, notably when transferring a non-current provisioninto a current provision





Debts and Payables

PurposeAnalysis of the changes in debts on purchase of assets and payables.



Subsequent data entry requirementsAnalysis of intercompany debts and payables: schedule Intercompany

Data entry principlesThe variation between the opening and closing position is automatically calculated on flow F15. It ispossible to post manually all or a part of the variation on other flows and flow F15 will automaticallybe updated.



Flow F50* is used for account reclassification, notably for the transfer of a non-current borrowing toa current borrowing




Other Financial Liabilities

PurposeAnalysis of the changes in other financial liabilities, like borrowings, convertible bonds, and derivatives.

PrerequisitesSchedule Balance – worksheet Equity and LiabilitiesSchedule Specific Operations (if relevant)

Subsequent data entry requirementsIntercompany other financial liabilities: schedule Intercompany

Data entry principlesFlow F20 is used for new borrowings or an increase in existing liabilities

Flow F30 is used for repayment



Flow F50* is used for account reclassification, notably for the transfer of a non-current borrowing toa current borrowing





Other Liabilities

PurposeAnalysis of the changes in other liabilities, like deferred tax and deferred income.



Subsequent data entry requirementsNone

Data entry principlesThe variation between the opening and closing position is automatically calculated on flow F15,except for the account L3000 - Liabilities included in disposal groups classified as held forsale. It is possible to post manually all or a part of the variation on other flows and flow F15 willautomatically be updated.

Flow F30 is used for the removal of liabilities included in the disposal of assets



Flow F50* is used for account reclassification, particularly for the transfer of a non-currentborrowing to a current borrowing



NoteThe F15 – Net variation column, which shows the difference between the total variation and variationsanalyzed by flow, must equal 0 for account L3000 - Liabilities included in disposal groups classified asheld for sale.


Net Equity EM

Equity Statement for Equity Method Companies

PurposeAnalysis of variation of shareholders’ equity dedicated to companies using the equity method.

PrerequisitesNone

Subsequent data entry requirementsBreakdown of dividends paid by shareholder: schedule Net Equity EM – worksheet Dividends paid

Data entry principlesCompared to the standard schedule, the Equity Statement for Equity Method Companies includesadditional consolidation accounts, including foreign currency translation reserves and non-controllinginterests, and also consolidation flows.

Flow F10 corresponds to the net income flow and therefore only relates to account E1610 Retainedearnings and E2010 Non-controlling interests - reserves and retained earnings. AccountE1610 Retained earnings is automatically filled in with the net income from the dedicated accountXP000 Profit (loss) - EM and possibly reduced by the share of non-controlling interest entered inaccount E2010 Non-controlling interests - reserves and retained earnings.

Flow F80, currency translation adjustment, is used for exchange difference variation

Impact of scope changes should be entered on the following flows:

Flow F01 is used for incoming entities

Flow F92 is used for changes in financial interest of full consolidated entities

Flow F98 is used for outgoing entities

NoteThe F15 - Variation column, which shows the difference between the total variation and variationsanalyzed by flow, must equal 0 for all shares and for the account total.

Hotschedules

HotschedulesSpecific OperationsPurposeEnter the impact of changes in accounting policies and merger operations on the balance sheet.

PrerequisitesNone

Data entry principlesThe schedule is presented as a balance sheet.

The impact of a change in accounting policies must be filled in on flow F09. The counterpart of thevariation of assets and liabilities is declared on retained earnings (account E1610 - Retainedearnings) in compliance with IFRS.

Flow F50 is used for account reclassifications across the entire balance sheet. Flow F50 shouldbalance assets – libabilities.

The impact of a merger must be entered on flow F70. If necessary, the impact on the Profit andLoss is declared in account P1620 - Merger result in the schedule Balance – worksheet IncomeStatement.

NoteFlows must be balanced as explained above.

Hotschedules

Intercompany - Single Account DetailPurposeAnalysis of a single profit and loss or balance sheet account by partner.

For the Profit and Loss:

- Reciprocal income and expenses

- Dividends received

For the Balance Sheet:

- Investments in subsidiaries / impairment on investments in subsidiaries

- Reciprocal assets and liabilities

- Internal allowances and provisions

PrerequisitesSchedule Balance - worksheet Income Statement

Schedule Financial Assets – worksheets Investments in Subsidiaries, Financial Receivables andOther Financial AssetsSchedule Liabilities – worksheets Provisions, Debts & Payables and Other Financial Liabilities

Data entry principlesData entered in the schedule Balance - worksheet Income Statement populates this schedule for eachprofit and loss account.

Data entered in the flow analysis schedules populates this schedule for each balance sheet account withthe detail by flow.

To enter breakdown details, partners should be added for each account beneath the total intercompany rowfor intercompany transactions.


Hotschedules

Intercompany Input Balance

Intercompany – Balance Sheet

PurposeAnalysis of all intercompany balance sheet accounts by partner:

- Investments in subsidiaries / Impairment on investments in subsidiaries

- Receivables and payables

- Internal allowances and provisions

- Other Financial Assets and Liabilities

PrerequisitesSchedule Balance – worksheets Assets and Equity and liabilities

Schedule Financial Assets – worksheets Investments in Subsidiaries, Financial Receivables andOther Financial Assets

Schedule Liabilities – worksheets Provisions, Debts & Payables and Other Financial Liabilities

Data entry principlesData entered in the flow analysis schedules populates this schedule for each balance sheet account withthe detail by flow.



Intercompany – Income Statement

PurposeAnalysis of all intercompany profit and loss accounts by partner:

- Income and expenses

- Dividends received

PrerequisitesSchedule Balance - worksheet Income Statement

Data entry principlesData entered in the schedule Balance - worksheet Income Statement populates this schedule for eachprofit and loss account.



Data validation

Data validationA number of controls have been configured in the starter kit to validate the coherence of the data entered inthe input schedules.

These controls validate data entered on the audit ID INPUT – Input Data.

ProcedureStep 1: Check the consistency of account/flow pairs in the schedule C1 Control Flows vs Accounts

Step 2: Run the data validation package Validation – Data Validation

Step 3: Check and correct errors displayed in the schedule C2 All Controls

Control Flows vs AccountThis report displays all account/flow pairs, and highlights possible inconsistencies on non-authorized cross-overs on movement flows.

Any corrections should be made in the appropriate input schedule.

All ControlsThis report shows the validation accounts, populated by the Validation Rules, and the correspondingnumber of errors.

The Guide worksheet contains an overview of the controls that have not been validated divided by theme.

There are 4 categories of controls, each corresponding to one worksheet:

Accounting

Variation

Intercompany (Balance Sheet)Intercompany (Profit and Loss)

In each worksheet is a message showing wether all the controls have been validated, and if not, thenumber of controls which have not been validated along with detailed information on the errors that havebeen found.

AccountingBasic accounting controls that are applied to the opening and closing position of the data entry period.Controls on the opening position deal more specifically with companies entering the consolidation scopesince opening data for other companies is pre-entered by copying the closing balance of the previousperiod.

Controls in this category also ensure that flows are used correctly.

These controls notably check that:

Assets and liabilities are equal

Depreciations, amortizations and provisions on assets are lower than the gross values

The balance between assets and liabilities for reclassifications (flow F50) and changes inaccounting policies (flow F09)

The equation assets – liabilities = merger result (flow F70)

VariationControls in this category check the exhaustive analysis of changes in balance sheet items when required,represented in input schedules by the F15 – Net variation column which must equal 0.

When flow F15 must equal 0, the error is identified with a red border and a message with the number oferror appears in red in the left column.

Errors can be corrected in corresponding flow analysis schedules.

Intercompany (Balance Sheet) and Intercompany (Profit and Loss)These controls check that the sum of the totals declared by intercompany is not greater than the total sumof the account in question at opening and at closing respectively (ALL_INTERCO < I_NONE).

When there is an inconsistency between the account total and the breakdown by intercompany, a messagewith the number of error appears in red in the left column.

If there is just one error, it can be corrected in the schedule Intercompany which can be accessed byclicking on the blue IC link link in the error column.

If there are two or more errors, they can be corrected in the schedule Intercompany Input Balance whichcan be accessed via the schedule link IC Input Balance.

BPC_NW_IFRS_DEG_201011

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Transcript of BPC_NW_IFRS_DEG_201011