WEBINAR Transforming Statutory Reporting at General Electric

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WEBINAR

Transforming Statutory Reporting at General Electric

Susie West

CEO

sharedserviceslink

Andrew Hay

Global Head Statutory Reporting

Thomson Reuters

Mark Boakes

Program Manager

General Electric

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• Context

• An introduction to Thomson Reuters ONESOURCE

• General Electric’s approach to Statutory Reporting

• Some background

• The challenges of managing statutory reporting globally

• Integrating ONESOURCE

• Results so far

• Q&A

• Local statutory financial reporting can be a real headache for multinationals, often

requiring reports to be created for hundreds of legal entities across dozens of

jurisdictions all with different formats and reporting deadlines.

• The reporting process, which is traditionally managed by local finance teams using

manual processes or outsourced to expensive audit firms, can be inefficient and can

risk inaccurate or delayed filings.

• As a result many multinationals are seeing the benefits of automating their reporting

processes and having the shared services organization take full responsibility.

THOMSON REUTERS

ONESOURCE Statutory Reporting

The Last Mile of Financial Reporting

MARKET THEMES

Centralization,

Automation,

Standardization

One standard global

process

Standard business

processing language

Initiative to centralize

statutory reporting

function

(e.g. SSC or COE)

One standard global platform

to prepare financial statements to comply with local government reporting requirements

WHAT IS ONESOURCE STATUTORY REPORTING?

Content for 34+

standard countries

2018: additional 8

2019: additional 8

Compliant country

templates in local

languages

Updates to each

country template

for regulation

changes

Pre-defined and

pre-linked

disclosures, with

supporting

workpapers

DELIVERY MODEL STATISTICS

Statutory Reporting

What is your delivery model for Statutory Reporting?

a) Outsourced

b) Completed in-house, local country

c) Completed in-house, SSC/GBS

d) Mix of all above

POLLING QUESTION 1

• Required skill sets

• Local or central review

• Language

• Motivation and career progression

KEY COMPONENTS TO SUCCESS

• Review process steps and gaps

• Same process, different location?

• Consistency of output

• Controls

• Practice run before live


• Consistency of inputs

• Local currency & GAAP

• Non-financial data per country

• Other uses of data outputs


• Enablement of process and controls

• Match business objectives

• Automate or manual?

• Tools for oversight and tracking


Statutory Reporting

What would you say is the main reason for not moving Statutory

Reporting to a Shared Service Center model?

a) Country specific knowledge is required

b) Need local relationships with authorities

c) Language capabilities

d) Processes aren’t standardized to migrate

e) Not a business priority

POLLING QUESTION 2

• Austria **

• Belgium **

• Denmark

• Finland **

• France **

• Germany **

• Hungary **

EMEA Americas

• Saudi Arabia **

APAC

• Australia

• China **

• India

• Hong Kong

• Malaysia

• New Zealand

• Philippines

• Singapore

• Argentina **

• Brazil **

• Canada

• Chile **

• Mexico **

• South Korea **

Scheduled for delivery in Q4 2017

• Ireland

• Italy **

• Luxembourg

• Netherlands

• Norway **

• Poland **

• Portugal **

• Colombia **

• Peru **

• Russia **

• South Africa

• Spain **

• Sweden **

• Switzerland

• Turkey **

• United Kingdom

Scheduled for delivery in 2018

• Czech Republic **

• Slovakia **

• UAE

• Japan **

• Taiwan **

• Vietnam **

• Ecuador **

• US GAAP

** Local language (otherwise

English)

ONESOURCE STATUTORY REPORTING COVERAGE

Transforming Statutory Reporting at General Electric

Presented by Mark Boakes Program Manager Statutory Consolidation & Reporting [email protected]

• About GE

• History

• Facts

• Mission & Strategy

• Shared Services

• Overview

• Operating Principals

• Enterprise Standards

• Statutory Reporting

• Reporting Strategy – Process and Tools

• ONESOURCE Statutory Reporting

Agenda

11/15/2017 Transforming Statutory Reporting at GE 20

About GE

History

GE traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company.

GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896.


Financials People

• Estimated net worth $170 billion

• Revenue 2016 $123.78 billion

• Net Earning 2016 $8.28 billion

• R&D spend 2016 $5.5 billion

Business

Facts

• Total Employees worldwide Dec 2016 – 295,000

• In more than 170 countries around the world

• GE Aviation

• GE Capital

• GE Digital

• GE Energy Connections

• GE Healthcare

• GE Lighting

• GE Power

• GE Renewable Energy

• GE Transportation 11/15/2017 Transforming Statutory Reporting at GE 23

Mission Statement

Building, powering, moving & curing the world by transforming industry with software-defined machines & solutions that are connected, responsive and predictive.


Shared Services

Overview – Global Operations

Who are we

We are the primary shared services for GE, operating in 85 countries. Our globally-focused team enables a unique competitive advantage by looking across all GE businesses, customers and suppliers for opportunities to deliver better outcomes at lower costs. In return, we create capacity for our business teams to focus on our customers, invest in R&D and grow new markets.

What do we do

Finance

• Controllership

• FP&A

• Treasury

HR

Legal

Tax Support

Commercial

Supply Chain

Where are we

5 Regional centres:

• Europe & Russia – Budapest, Hungary – 2,200 people – supports 27 Countries

• Asia – Pudong, China – 1,700 people – supports 18 countries

• LATAM (South America) – Monterrey, Mexico – 1,000 people – supports 10 countries

• META (Africa & Middle East) – Riyadh, Saudi Arabia – 1,000 people – supports 32 countries

• US & Canada – Cincinnati, Ohio – 2,000 people – supports 2 countries

Globally >7,000 FTE


Operating Principals

Delivering processes at scale to enable businesses to focus on their core-expertise

Partnership

• Between the Businesses, Global Functional Owners and the Regional Global Operations teams working together to implement solutions to help simplify GE’s operations

Ownership of the Process

• Wing to wing processes are functionally owned, business leveraged / influenced, and global Operations enabled to maximize standardization and to ensure consistent quality for all GE’s operating processes

• Copy length is limited by the height and width of the container shape

Shared Infrastructure and Leveraged Enabling support

• One seamless environment to reap the benefits of scale, reduced overhead and duplication and to provide a simplified experience for employees

Common Framework

• Each function approaches us in the same way – in terms of common mission, purpose and delivery model


Global Operations is building solutions to reduce complexity in the company's processes, systems, and structures ... Enterprise Standards.

Partnering with the GE businesses, we are aligning employees globally who work on our key finance, transactional, and compliance processes into one team to accomplish our mission: to create leaner processes that improve our cost, quality, and speed, drive simplification, and build and operate world-class processes for GE.

Enterprise Standards


Enterprise Standards published:

• Finance – Record to Report, Stat 2 Tax, Fixed assets, Treasury

• Supply Chain – Sourcing, Customs, Travel

• HR – Payroll, Recruitment, Exit, etc

• Order to Cash, Data Management, Integration, Legal, etc

Statutory Reporting

S@S STRATEGIC

GLs

Account Rec ARM

Last Mile

ONESOURCE STAT

REPORTING

Enterprise Standard Chart of Accounts

Core statuatory process & Tools

Reporting Strategy – Process and Tools

CTQ's

ES Chart of Accounts

Statutory @ Source (S@S) - Technical

Dual Ledgers GAAP & Statutory independent ledgers available

P-Mirror Primary GAAP ledger mirrored to Statutory ledger

GAAP to STAT Walk Indicators in Statutory Ledger to enable

Statutory adjustment in GL (e.g. S@S)

Statutory @ Source - Organizational & Operational: on the ground

readiness to meet…. ES Quarterly close, Global Operations migration, etc

Enables ARM Account Rec: tool and process

Enables Tax Provisioning: Tax @ Source tools and process

CTQ's

ES Chart of Accounts

GL Integration to load Statutory

Ledger Trial Balance – Standard

Edit Check Reports utilised

Full Consolidation process –inc.

Elimination & Aggregation

Standard Reports available (e.g.

GAAP2STAT Walk, BS, P&L, etc.)

Flexible User query tool

CTQ's

ES to Local CoA mapping

Full filing FS content – Big 4

certified

Country release enabled

Auto Sub (xBRL) if mandatory

Legislative changes delivered by

TR – template “upgrade”

Minimal manual inputs – TB

loaded

"Audit Proof” as transparent

Consolidation SHFM

Local CoA

Process Tool

Integrated (limited hand-offs), Controlled, Standardized & Scalable

S@S Adj Stat Recs Abridged Financials Locally compliant Stat Accounts


ONESOURCE Statutory Reporting


Global Delivery Project

• Enabler – TR Country Template available or Bespoke Justified (Africa and Middle East Regions)

• Delivery Infrastructure – Thomson Reuters Expertise, Central GE Team, Local Stat Team

• Deployment Process:

Pre release: TR model FS shared, GE team review and feedback

Pre release: TR review GE current filing sample for content assurance

Initial Kick Off and ONESOURCE Training: TR Deliver

Bi-weekly Pule Calls: TR & GE, knowledge gaps, issue resolution, How To, etc

Country Delivery: Account Mapping, Content Finalisation, User Testing, GE Template moved to Production

• Operational – GE Team migrate existing filings to ONESOURCE – TR monthly health check – utilise Standard TR Support

Country ONESOURCE Utilisation for Statutory filing so far….

2015 Cycle > 500 filing completed in tool

2016 Cycle – around 800 filings planned

End Game – around 1,200 filings

Thank you – any questions?

32 11/15/2017 Transforming Statutory Reporting at GE

Statutory Reporting

400+ 2017 Clients

34 Countries now live within

ONESOURCE Statutory Reporting with a further

16 Countries in 2018/19

3 Used by

of the

Big 4 accounting firms

Statutory Reporting

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WEBINAR Transforming Statutory Reporting at General Electric