KKCG a.s.

KKCG Group is an investment group with activities in oil and gas exploration, production and trading, entertainment, real estate and other

IFRS consolidation and reporting in a large investment group

Company website
http://kkcg.com/en/

Headquarters
Prague, Czech Republic

Industry
Investment group

Products and services
Oil, Gas, Entertainment and other





Business need
KKCG is a large international group and is required to prepare consolidated IFRS reports. Its existing solution based on manual distribution and collection of spreadsheets, followed by manual currency translations, eliminations and other standard consolidation tasks, was insufficient in many ways. KKCG looked for a solution that would reduce consolidation related FTEs and, at the same time, enable more frequent (at least quarterly) consolidation and fast close.

Resolution
KKCG decided to implement SAP Business Planning and consolidation (version for MS SQL Server), which was a suitable consolidation tool and fitted into company's IT architecture. After conceptual redesign of data collection and consolidation processes, we implemented a consolidation application which allowed not only consolidation of the KKCG group but also individual closes and all sub-consolidations. Later KKCG expanded the solution with a planning application, thus improving effectiveness of the SAP BPC investment even more.

The project has been delivered by consultants of the MIBCON Group.

Key benefits

  • Enablement of more frequent consolidation (from yearly to quarterly and monthly).
  • Faster and more accurate closings meeting IFRS and legal requirements.
  • Lower costs per consolidation cycle - both for the holding company and its subsidiaries.
  • Automatic audit trail of all data changes.
  • Full control over individual access to data.
  • Improved data quality – automated consistency checks (statements vs. notes, balances vs. flows, local accounting values vs. reported values and other), guided entries, input and import checks.

Key features

  • • Full set of IFRS financial statements and disclosure reports.
  • Individual data and notes collection through imports and manual inputs
  • Currency translation and FX difference calculation.
  • Intercompany reconciliation.
  • Elimination of all intercompany transactions and intercompany margins.
  • Scope-in and scope-out operations.
  • Calculation of non-controlling interests.
  • Balances carry forward.
  • Workflow management support, including step-by-step guidance of the users, process execution monitoring and data locking mechanism.
  • High-performance back-end enabling fast execution of the consolidation logic.
  • Consolidation logic driven by parameters maintained by business users.