中石油财务信息系统设计(英文版).pptx

1、PetroChinaRequirements and design of FMIS modificationsFMIS enhancement project,December 1999,1,Contents,1.Business requirements32.Gap analysis103.Overall approach and design principles134.Business process overview155.Overview of system changes186.New data files and associated processes247.System pr

2、ocesses for consolidation and reporting29Appendix A-Report formats32,2,System Design for FMIS Modification,2,Business requirements,Chapter 1,3,To be able to do an IPO,PetroChina need to be able to produce certain key financial reports,To produce these reports,some changes to FMIS needs to be impleme

3、nted.,Business requirement overview,The FMIS system need to be able to produce the following reports:Annual consolidation reports as required by China Finance Ministry based on the PRC GAAP for joint-stock company.Quarterly consolidation of reports of the overall ListCo based on the IAS is required

4、for publicly listed companies.Disclosure items are also required by IAS and PRC GAAP for joint-stock company.Some other information is required to support annual auditing.All the above reports(except the audit information)will need to be produced along the new PetroChina organization structure as de

5、scribed in the following page.The above reporting requirements are detailed in the next pages.,4,PetroChina,Level 1PetroChina,Level 2SpecializedCo/Business Group,Level 3Segment,Level 4Type,E&P,.,.,.,Level 5BusinessUnits,.,.,Gas&Pipeline,Downstream,Oil&GasE&P,Natural gas(inc.gas pipeline),Refining&Ma

6、rketing,Petrochemicals&marketing,Others,Refining,PetroChina reporting structure,Marketing,R&D,China oil,HQBeijing,E&PHuaBei,G&PHuaBei,RefineryHuaBei,Level 6OperationsUnits,Level 7SuboperationsUnits,Oil field#1,Oil field#2,Oil field#3,District 1,District 2,District 3,5,PRC GAAP consolidation report r

7、equires the following data:,Business requirements for PRC consolidation,Individual PRC GAAP reports of all entity involved in consolidation.Balance sheet(PRC GAAP)Income statementCash flow statementInternal transactions reportsInternal transaction listInternal product sales or purchase reportInterna

8、l rendering of service report or internal service purchase reportInternal long-term equity investment report,capital structure reportInternal payable or receivablesRequired information for internal transactionsCounterpart,transaction type,period,beginning balance,credit amount,debit amount,ending ba

9、lance,6,There are two types of changes that need to be made to comply with IAS,Business requirements for IAS consolidation,PRC consolidated financial statements with specific detailsIndividual PRC reports listed earlierLedger reportTransactions with different accounting treatment in IAS and PRC GAAP

10、Development costs-E depreciation amount based on un-reevaluated amount by unit of production method or straight line method(depend on assets class)Deferred business initial cost(pre-operation expenditures)Beginning balance,ending balanceMonthly revaluation of non-current monetary assets&liabilities(

11、foreign currency item)Historical value(calculated by exchange rate of occurring date),reevaluated value of long-term loan(foreign currency),long-term deposit(foreign currency),other long-term monetary assets or liabilities.,7,IAS and PRC GAAP requires the following items for disclosure purpose:,Busi

12、ness requirements for disclosure purposes,Aging report of accounts receivable(PRC GAAP)Long-term equity investment(PRC GAAP)Investee,stock type,share number of stock,share percentage,amount,remarksLong-term bond investment(PRC GAAP)Bond type,par value,rate,purchased amount,due date,interest of this

13、year,accumulated interest,remarksOther non-equity long-term investment(PRC GAAP)Debtor,principal,rate,due date,interest income of current period,accumulated interest,remarksLong-term loan(PRC GAAP)Loaner,amount,due date,rate,term(If foreign loan)Foreign currency amount,RMB amount by exchange rate of

14、 balance sheet dateBonds payable(PRC GAAP)Bond name,par value,issued date,issued amount,due date,interest expense of current year,accumulated interestRelated party transactions(PRC GAAP Expenses not deductible for tax purposes,Movement of allowance for doubtful accountsBalance at beginning of period

15、,Provision,Deductions,Balance at end of period Movements in allowance for diminution in value of inventoriesBalance at beginning of period;Provision;Deductions;Balance at end of periodMovement report of PPE Ending balanceLoans Analysis ReportDirectors remuneration reportSalaries,allowances and other

16、 benefitsContribution to retirement benefit scheme,8,FMIS also need to produce certain information that is required to facilitate annual audit.,Business requirements for annual audit,The required information for accounts receivable,long-term equity investment,long-term non-equity investment has been

17、 listed in disclosure requirement.The only remaining items for annual audit are listed below:Short-term investmentInvestment type,investee,security type,par value,historical cost,rate,due date,interest receivable or dividends receivable,premium/discount and its amortisationNotes receivableNotes type

18、,par value,rate,drawer,due dateOther receivableDebtor,amount,post due daysAssets revaluationAssets class,book value before revaluation,book value after revaluationShort-term loanLoaner,amount,rate,due dateNotes payableOwner,par value,rate,due date,9,Gap analysis,Chapter 2,10,Changes in financial rep

19、orting process,PetroChina needs to implement a large scale change in its financial reporting process.,Current,Consolidation is done by the auditors using spreadsheets and manual data collection and manipulationFMIS report is not compliant with PRC accounting standard for joint-stock company.IAS repo

20、rt is produced by the auditors using manual methodReporting is done for the whole CNPC with the current org structureUse current chart of accounts,Future,Consolidation will be done by PetroChina accountants as part of the regular accounting process using FMISFMIS report will be compliant with PRC ac

21、counting standard for joint-stock company.AS report is produced by Petrochina accountants using FMISReporting structure for PetroChina will be separated from the old CNPC.New org structure will be put in placeNew chart of accounts will be in effect,11,Systems issues,The following systems issues are

22、identified as critical to the ability for PetroChina to be able to do consolidation and produce the required reports,REQUIREMENTReconciliation of transactions that occurs across different accounting entities.Some detailed information need to be passed up the corporate reporting structure.,SYSTEM ISS

23、UEThis is difficult to do with the current FMIS since FMIS treats each accounting entity as independent from other accounting entities.This is not possible in the current FMIS since FMIS only transfer reports,not detailed information.,CONSOLIDATION PROCESS,REQUIREMENTIAS report have some different g

24、rouping of accounts compared to PRC reports In the interim,CNPC requires reporting based on locations in addition to the“normal”reporting procedure along segmentDisclosure items need to be produced and rolled up,SYSTEM ISSUECurrent FMIS aggregates report up the hierarchy and it is not possible to se

25、e or reconstruct the individual accounts,therefore it is not possible to regroup accounts at higher level.Currently FMIS reporting hierarchy follows a strict tree pattern with one entity reporting to only one parent.Current FMIS can not produce this data nor roll it up,REPORTING PROCESS,12,Overall a

26、pproach and design principles,Chapter 3,13,Design principles/goals,The design has to be implementable prior to the IPOModified FMIS must be able to produce all required reports with minimal manual workAvoid major changes in business processAvoid major changes in FMIS which needs long development tim

27、e and/or high risk of destabilizing FMISMarginal changes to FMIS is preferred to marginal change in business processChanges in business process or FMIS should have minimal dependency on short-term improvement to IT infrastructure.Due to current limitations in telecommunication,the amount of data tha

28、t needs to be transferred should be minimized.To ease transition,the modified FMIS need to have data compatibility with current FMIS,The following principles have been followed in creating the design for the new system:,14,Business process overview,Chapter 4,15,LocationLevel 5,SegmentLevel 3,HQ Corp

29、Level 1,Lgr,Lgr,Lgr+,Lgr+,IAS,IAS,PRC,Segment A,Segment B,Elim,Elim,PRC,ElimIAS,ElimIAS,Elim,IAS,Lgr+,Lgr+,IAS,IAS,ElimIAS,Elim,IAS,IAS,Different segment,different location,Same segment,different location,Same segment,same location,Different segment,same location,Data flow diagram of rollup process,

30、PRC,PRC,Lgr,Lgr,Notes:Lgr+=ledger report plus some otherspecial reports.,16,Roll up and consolidation process chart,1.1 Enter transactionsfor Level 6 HO,1.5 Enter same-segment,same-locationelimination entries,1.4 Import reportsfrom level 6HO ledgers,1.2 Create reports forLevel 6 HO ledgers,1.3 Recei

31、ve reports&import datafrom level 7(district),1.8 Produce IASadjustment file(IAS file),1.7 Produce BU segmentPRC report,1.6 Determine IAS adjustments,1.9 Send PRC BU segment reportand IAS file to Beijing Business group Finance,2.1 Receive PRC reportfrom BU Location segments,2.2 Enter different-segmen

32、tsame-locationelimination entries,2.4 Send different-segment,same-location eliminationfile to Beijing H.Q.,2.3 Produce Location PRC report,3.1 Receive BU segmentPRC report and IAS file,1.10 Send PRC report to Location HOfinance,3.2 Enter same-segment,different-locationselimination entries,3.3 Produc

33、e bus.group PRC report andIAS adjusted report,4.1 Receive PRCreport and segmentIAS file,4.2 Receive different-segment,same-location elimination files,4.3 Enter different-segment,different-locationelimination entries,4.5 Produce corporatePRC reports andIAS reports,BU Location,Location HOFinance,Segment Finance(Beijing),CorpFinance,3.4 Send business group PRC report andIAS file to corp,4.4 Enter IAS