EU legal regulations oblige all listed companies to report according to IAS/IFRS standards. For present and future issuers and their subsidiaries this means the necessity to modify their SAP system.
Following the Regulation (EC) No 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards (IAS Regulation), a novel to the Polish accounting act obliges all issuers of securities that already are or are applying to become listed in Poland or the EU to implement IFRS (International Financial Reporting Standards) and IAS (International Accounting Standards).
The necessity to implement changes concerns not only companies listed on Warsaw Stock Exchange, but also those whose mother company is listed in other EU states. Capital groups expect their subsidiaries, even if not listed, to report according to IAS.
Many companies have already adjusted to IAS/IFRS standards by manual translating their profit and loss into international standards as at the end of the year. However, this is a time-consuming solution, subject to high risk of errors.
Implementing IAS/IFRS standards requires knowledge on new legal requirements and the possibility to reflect them in SAP system, which in turn requires commitment of the management responsible for finance and those who know enough about SAP.
To meet those needs BCC offers a product called ‘IAS/IFRS in SAP’, which combines business consulting with implementing appropriate changes in SAP system. The package consists of the following elements:
- audit of data registration – defining the differences between the present solution and IAS/IFRS requirements
- adjusting SAP configuration
- automatic reporting
- improving communication with capital market – preparing a set of forms and reports (with the use of a ready-made report data base, provided by BCC in the product), which meets the strict IAS/IFRS requirements
When using the package ‘IAS/IFRS in SAP’, the clients will quickly and smoothly harmonize their solutions with international regulations. The effect is not only improvement of work, but also a new standard in communication with capital markets.