1

SAP® BUSINESSOBJECTS™ PLANNING AND CONSOLIDATION 7.5, VERSION FOR THE MICROSOFT PLATFORM

STARTER KIT FOR IFRS � Simplified Configuration Description

Copyright © 2009 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

Legal No part of this starter kit may be reproduced or transmitted in any form or for any purpose Disclaimer without the express permission of SAP AG. The information contained herein may be

changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. The information in this starter kit is proprietary to SAP. No part of this starter kit’s content may be reproduced, copied, or transmitted in any form or for any purpose without the express prior permission of SAP AG. This starter kit is not subject to your license agreement or any other agreement with SAP. This starter kit contains only intended content, and pre-customized elements of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this starter kit is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this starter kit. SAP does not warrant the accuracy or completeness of the information, text, pre-configured elements, or other items contained within this starter kit. SAP DOES NOT PROVIDE LEGAL, FINANCIAL OR ACCOUNTING ADVISE OR SERVICES. SAP WILL NOT BE RESPONSIBLE FOR ANY NONCOMPLIANCE OR ADVERSE RESULTS AS A RESULT OF YOUR USE OR RELIANCE ON THE STARTER KIT. THIS STARTER KIT IS PROVIDED WITHOUT A WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SAP SHALL HAVE NO LIABILITY FOR DAMAGES OF ANY KIND INCLUDING WITHOUT LIMITATION DIRECT, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES THAT MAY RESULT FROM THE USE OF THIS STARTER KIT. THIS LIMITATION SHALL NOT APPLY IN CASES OF INTENT OR GROSS NEGLIGENCE. The statutory liability for personal injury and defective products (under German law) is not affected. SAP has no control over the use of pre-customized elements contained in this starter kit and does not endorse your use of the starter kit nor provide any warranty whatsoever relating to third-party use of the starter kit.

3

Contents Chapter 1 Foreword .................................................................................................................................. 5

Chapter 2 Data Collection ........................................................................................................................ 7

Data Entry Format ..................................................................................................................... 7

Business Process Flow for Data Entry ..................................................................................... 8

Data Entry Principles ................................................................................................................ 9

Chapter 3 Consolidation Process ......................................................................................................... 11

Business Process Flow for Consolidation............................................................................... 11

Intercompany Reconciliation ................................................................................................... 12

Consolidation Processing ....................................................................................................... 12

Converting data ....................................................................................................................... 12

Automatic Entries .................................................................................................................... 12

Chapter 4 Report and Analysis Process .............................................................................................. 13

Reports Library ....................................................................................................................... 13

Validation Reports ................................................................................................................... 14

Publishable Key Financial Statements ................................................................................... 16

Audit Trail ................................................................................................................................ 16

Configuration Languages ........................................................................................................ 20

Chapter 5 Appendix 1 Entry Balances ................................................................................................ 21

Chapter 6 Appendix 2 Financial Statements ...................................................................................... 27

5

Foreword The SAP BusinessObjects Planning and Consolidation starter kit for IFRS is created to deliver consolidation business logic on top of a unified planning, budgeting and consolidation application using both product and functional best practices.

This pre-configuration assists you in setting up your application in order to adhere to IFRS while accelerating and securing the implementation project.

The starter kit for IFRS is pre-configured with input documents, rules, control reports, audit-trail and financial statements for performing, validating and publishing a statutory consolidation in accordance with IFRS.

In addition to the pre-configuration, the starter kit for IFRS is provided with Microsoft Excel-based XBRL templates mapped with IFRS taxonomy for use with the SAP® BusinessObjects™ XBRL Publishing application by UBmatrix. Thus allowing you to pull data from SAP BusinessObjects Planning and Consolidation into XBRL documents and create publishable financial statements compliant with both IAS 1, and the XBRL reporting standards as published by the IASB in April 2009.

6

7

Data Collection

Data Entry Format

Account Typology

The starter kit for IFRS is based on the final IFRS Taxonomy 2009 published on 2 April 2009. This chart of accounts enables financial statements to be presented following the requirements of IAS 1: Assets and liabilities are classified according to the current/non current distinction and in the income statement expenses are classified by function.

Other accounts are appendix accounts for headcount analysis and Income Statement by nature.

The chart of accounts is presented in the appendix.

Naming Convention for Accounts

In the financial accounts, the first letter of the code enables you to identify the accounting class: A for assets, E for equity, L for liabilities and P for profit and loss (net income). Total accounts are indicated with a T as the last digit after the account number coding.

Example:

Subtotal Account Code

Lands and buildings A1110

Lands and buildings, Dep. A1120

Property, plant and equipment A119T

Customizing the Chart of Accounts

The chart of accounts has been designed to be enhanced with customer specific accounts.

In the starter kit for IFRS, accounts are created with dimension properties to define their behavior throughout the configuration: for instance analysis by flow, currency translation, disclosure analyses, position in the account hierarchy.

Copy-pasting an account from a template account allows you to assign the appropriate attributes automatically to the new account.

This implementation principle has been used for data entry and analysis reports as well as consolidation rules to ensure a dynamic configuration facilitating the integration of new accounts.

8

Business Process Flow for Data Entry

Business Process Flows for data entry have been configured to guide the business user through the data collection process and the different data input schedules.

Order of Data Entry

The Business Process Flow for Data Entry and the links between the different reports guide the end-user through a step-by-step approach for entering data:

1. Closing balances (Balance Sheet, Income Statement and Net Equity)

� With on demand optional views: leaf level only, show totals, hierarchy indentation

2. Period movements (breakdown by flow)

� With display and locking of flow/account pairs not open for data entry

3. Intercompany details – one single dynamic Intercompany schedule

� With direct links / drill down from the main balance and breakdown by flow

� And dynamic expansion based on source schedules

4. Disclosures

A detailed list of all input schedules is presented in the appendix.

Upload data from source system

Enter disclosure data

Enter balance data and breakdown by flow

Final approval

Check data consistency and perform data validation

9

Data Entry Principles

Breakdown by Flow

Flow entries allow you to identify variations in the balance sheet between the opening and closing balance and thus automatically generate the statement of cash flows.

The flows available in input schedules can be classified into two categories:

� Flows for current transactions (purchase, increase in depreciation, fair value, etc.)

� Flows for special transactions (changes in accounting policies, internal merger, etc.)

A detailed list of accounting flows is presented in appendix.

Sign of indicators

� Assets are entered as positive amounts except for amortization and depreciation of assets. These are entered as negative amounts.

� Liabilities and Equity are entered as positive amounts.

� Expenses and income figures are all entered as positive amounts.

In retrieval reports, contra assets and expenses will be displayed as negative (in brackets).

The schema below summarizes the different entry and display signs.

Assets Amortization/ Depreciation

Equity & Liabilities

Income Expenses

Entry + - + + +

Display 100 (100) 100 100 (100)

10

Data Entry Validation Pre-configured reports contain controls on collected data for validating the data entry step of the consolidation process.

Main types of control

AIM EXAMPLE

Check main balances

Assets = Liabilities + Equity

Net income as per P&L = Net income as per Balance Sheet

Gross value of assets ≥ depreciation at closing

Flow analysis Complete analysis of assets and liabilities by flows

The transfer flow must balance

Intercompany breakdown Intercompany detail ≤ account total at closing

After data entry validation has been completed, data is submitted to the approver. The final approval of data will change the status of the reporting to “locked” and no user will be able to modify data.

11

Consolidation Process

Business Process Flow for Consolidation

Business Process Flows are available for preparing and running the consolidation, guiding the business end user through set up, consolidation processing, data analysis and the delivery of financial statements.

Prepare the consolidation

Perform intercompany reconciliations

Deliver Financial Statements

Run the consolidation

Verify consolidation parameters

Post eventual manual adjustments

Generate input opening balance

Check main balances

12

Intercompany Reconciliation

The Intercompany matching process is handled within a dedicated application, ICMatching. The configuration includes the following configuration items for performing the reconciliation process:

� Package dedicated to exporting data from the Consolidation application to ICMatching

� Reconciliation process including currency conversion

� Reconciliation reports (Balance Sheet, Balance Sheet by Flow, Profit & Loss and Dividends)

Consolidation Processing

The consolidation engine handles the following consolidation methods:

� Full consolidation

� Proportionate consolidation

� Equity method

A set of automatic and manual processes pre-built within the starter kit for IFRS enables the processing of the following scope changes:

� Acquisitions

� Loss of control

� Equity transactions

� Changes in interest rates of associates and joint-ventures

Converting data

Foreign subsidiary accounts are converted using the closing rate method:

� The closing balances of balance sheet accounts are converted using the closing rate, except for equity and consolidated investments kept at their historical value. Currency translation reserves are automatically operated.

� The income statement is converted using the average rate for the period.

� The statement of cash flows is based on balance sheet variations which are converted at the average rate for the period.

Automatic Entries

The Consolidation application of the starter kit for IFRS includes a set of consolidation rules that enables to produce consolidated data using data from input schedules. The rules are organized by functional theme, leveraging native product functionalities, and can be enhanced in order to meet your specific accounting policies.

The automatic consolidation entries are:

� Elimination of intercompany reciprocal operations

� Elimination of internal dividends

� Goodwill booking (on the basis of a manual declaration)

� Elimination of investments in subsidiaries

� Calculation of the currency translation adjustments

� Calculation of non-controlling interests

13

Report and Analysis Process

Reports Library

Once the consolidation process is completed, a Business Process Flow with all financial statements and accounting reports can be made available to several users for analysis and review.

Publishable Financial Statements

Drill down reports from key financial statements

Overview and control reports

General ledgers and ledgers

14

Validation Reports

The work status report and data consistency dashboard are examples of the validation reports that are configured in the starter kit for IFRS.

The work status report gives you an overview of the reporting status (submitted, approved…) for each entity.

Work Status Report

15

The data consistency dashboard gives an at a glance overview of the consolidation process with main balance and intercompany elimination controls.

Other detailed reports allow checking miscellaneous consistencies like opening carry-over, flow balances, balance net income versus P&L net income and currency translation.

Data Consistency Dashboard

16

Publishable Key Financial Statements

The starter kit for IFRS contains a complete set of financial statements following the requirements of IAS 1:

� A Statement of Financial Position with a current/non current format

� An income statement with an expense classification by function

� A Statement of Other Comprehensive Income

� A Statement of Cash Flows

� A Statement of Changes in Equity

Audit Trail

Analysis Reports

A series of reports such as breakdown reports, ledgers and journals allow the analysis of consolidated data.

All of these reports are configured to leverage the analysis features of the application to give access to detail by account, reporting unit, partner, flow and audit ID:

� On demand hierarchy level settings from starting point

� Dynamic formatting based on hierarchies or styles

� Drill down (through hierarchies)

� Links to breakdown reports

All formatting, link, drill down features and working language are available directly from within each report. Moreover, each report work book has a “Setting” sheet for handling dynamic enhancement of the document variables.

A detailed list of retrieval reports is presented in appendix.

Audit ID

Each data item in the configuration is linked to an audit ID making the audit-trail possible and facilitating the analysis of consolidated data.

The audit ID allows the accounting origin to be tracked. For instance:

� The “INPUT – Input data” audit ID tracks data entered in input schedules

� The “ELIM10 - Intercompany Eliminations” audit ID tracks elimination of reciprocal transactions

� …

A detailed list of audit IDs is presented in appendix.

Drill through to MJEs

Using the native drill through capabilities of SAP BusinessObjects Planning and Consolidation, you can access detailed information on possible debit/credit manual journal entries for one specific audit ID.

17

Analysis of a Statement of Financial Position line item by flow

18

Analysis of an Income Statement line item by entity and partner

S001 has sold goods for 594,986 EUR to S000.

This reciprocal operation is eliminated during the consolidation process.

19

Analysis of Statement of Cash Flows line item by account/flow pair

The consolidated Statement of Cash Flows is calculated and stored automatically using the flow analysis of balance sheet movements.

Drill through takes you to the detail by account flow pair, by audit ID and by entity.

20

Configuration Languages

The pre-configuration contains 3 user languages: English, German and French.

The working languages are applicable per user. Language selection is possible within each schedule and is then automatically updated in all reports and configuration elements.

The different translations are based on dimension properties, but also document descriptions and free text can be managed as multi-language elements within the “Settings” sheet of each document workbook.

Consequently, the starter kit for IFRS can easily be enhanced to comprise other languages than the standard languages either by adding a new or replacing an existing translation.

21

Appendix 1 Entry Balances1

Assets

1 Data shown in the appendix come from the demonstration data set delivered with the starter kit: ACTUAL –

2009.DEC – EUR - CORPORATE

22

Assets (cont’d)

23

Assets (cont’d)

24

Liabilities and Equity

25

Liabilities and Equity (cont’d)

26

Income Statement

27

Appendix 2 Financial Statements

Statement of Financial Position

28

Income Statement

29

Statement of Other Comprehensive Income

30

Statement of Cash Flows

31

Statement of Changes in Equity