Infor10 CPM Reporting (PM10)

Overview

Adhering to International Financial Reporting Standards (IFRS) is an inescapable part of operating a successful business in Europe. So is having a financial performance management solution that just as easily helps you meet IFRS requirements as it helps you monitor, measure, and manage your business.

Enterprising companies know they must have a performance management solution that is flexible enough to accommodate a wide range of currencies, exchange-rate scenarios, financial statement formats, and other business reports. A single performance management solution that satisfies IFRS requirements and improves performance management can help you meet strategic business goals without the risk of being out of compliance.

Infor10 CPM Reporting is a flexible, easy-to-configure performance management solution that can transform your budgeting, planning, and analysis capabilities to boost business performance and meet all major global reporting requirements, including IFRS. Infor PM Business Process Applications, a core component of Infor PM, is a Web-based solution that integrates the strategic management, planning, budgeting, forecasting, financial consolidation, and reporting processes into a seamless whole that provides real-time access to critical business information. The solution provides the capability to efficiently track, report, and analyze the information for improved overall business performance.

In today’s complex global economy, companies must cut costs while better executing strategy, meeting investor expectations, and satisfying regulatory obligations. The specific capabilities in Infor10 CPM are designed to help companies like yours meet IFRS requirements and transform planning, budgeting, and analysis capabilities. By adopting a single performance management system that can satisfy IFRS requirements as well as help improve performance, you can better execute your competitive strategy. Here is how Infor10 CPM helps you meet IFRS requirements:

Financial statement presentation

IFRS provides companies with multiple financial statement layout options. Companies can present their income statement either in a traditional “chart of accounts” mode or by using functional terms such as R&D, purchasing or production. The cash flow statement can be presented in a “direct” or “indirect” style, at either average or closing rates of exchange. In IFRS, the balance sheet is a critical standalone report and must include specific headings. Although companies have options in choosing a format, all financial statements must be transparent and indicate the company’s competitive advantage in terms of financial metrics.

Infor10 CPM provides the flexibility that companies need to easily configure financial statements in compliance with IFRS. With Infor10 CPM, financial statements can be presented in multiple formats, use multiple currencies and exchangerate scenarios, and use flexible account group headings. The solution also enables ad-hoc analysis from a regulatory as well as a management perspective.

Segment reporting

IFRS requires public companies to designate financial data as either primary or secondary, and report their data along product and service lines as well as geographical lines. In addressing primary segments, companies must report in more detail, providing a balance-sheet analysis that includes the assets and liabilities employed. In addition, IFRS has specific rules that require companies to put segments in similar risk classes.

Infor10 CPM is a multi-dimensional solution and, as such, allows companies to record and report information for segments using a variety of dimensions, including geography, service, and product. The solution enables multiple views into operational performance and multiple versions of the same structure, including budgets, forecasts, targets, and actuals. Financial data can be consolidated in multiple currencies.

Foreign currency transactions

IFRS requires companies to report the effect of changes in foreign exchange rates. to comply with IFRS, a company’s income statement must be translated at average rates of exchange, while the balance sheet must be translated at closing rates. To address this, Infor10 CPM delivers out-of-the box capabilities that allow companies to specify by account and/or statement which currency and exchange rate sets apply. Infor10 CPM supports consolidation using various rate-set scenarios, such as a strong or weak dollar rate or this year’s and last year’s rates.

Minority interests

IFRS requires full elimination of intercompany transactions and balances for controlled subsidiaries and dictates a variety of complete and partial consolidations. Disclosures of certain key financial figures for every associated entity are required. To address this, Infor10 CPM enables consolidation adjustments such as share of associated entity profits, minority interests, and intercompany and recurring adjustments The solution dynamically books journal entries at the proper proportional value for subsidiaries and generates full audit trails on adjustments to satisfy IFRS requirements.

Financial reporting in hyperinflationary economies

IFRS andates that companies track and present a special set of financial statements for any entity operating in a hyperinflationary economy. These companies must apply specific translation methods for hyperinflationary currencies to create clear and meaningful comparisons to prior periods. To address this requirement, Infor10 CPM provides built-in currency intelligence that eliminates manual conversion processes that are time consuming and errorprone. The solution supports consolidation using multiple sets of exchange rates for multiple currencies and enables a company to track information in a business unit’s local currency, functional currency, and reporting currency.

Discontinuing operations

IFRS requires companies to meet detailed disclosure requirements for operations that are being sold or discontinued. A company’s financial system must have the flexibility to present data pertaining to before and after the disposal periods to allow auditable identification of the effects of the discontinued operations. Infor10 CPM provides analytical tools and support for multiorganization structures to show the consolidated effect of the disposition.

Multiple reporting requirements

IFRS requires companies to meet specific requirements for consolidated accounts that don’t meet operational requirements, such as the need to prepare local statutory books. As a result, companies must manage multiple sets of books to address IFRS and operational requirements for each legal entity. To help meet this requirement, Infor10 CPM supports a variety of consolidation and reporting processes within the application, simplifies data collection from multiple remote transaction systems and charts of accounts, and enables you to automate internal and external reporting processes. The solution simplifies multi-currency conversions andintercompany eliminations, generates complete audit trails, and delivers powerful ad-hoc reporting using advanced visualization techniques and automated online report production and distribution.

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