FESA CONSOL

FlexSystem

Standardization

Standardization AVESTA represents a group of users they are working within a computerized environment knowing that automation of standardization computing supported by their computerized systems are far from perfect.

 

Key standardization issues

 Differing transaction and reporting currencies

 Differing account codes and other dimensional codes

 Differing units of measurements

 Differing accounting policies and practices

 Differing accounting systems

 Differing year end dates

 

Differing accounting policies and practices

 Differing measurement and recognition rules

  Allocation, amortization, depreciation

 Differing disclosure and presentation rules

  IAS 24 Related-parties disclosures

  IFRS 7 Financial instruments disclosures

  IFRS 8 Operating segments disclosures

 

Differing accounting systems

 Differing design of account code e.g. very long account code

 Differing database e.g. SQL and NoSQL

 Posted vouchers can or cannot be amended

 

Strategy of standardization

 Re-do implementation of existing systems

 Acquire and implement new systems

 Instruct regional office to re-classify, re-measure and re-input data on a set of standardize entry forms that follow accounting policies and practices for the purpose of consolidation

 Implement automation of standardization for every data file submission by regional offices

  Involve initial setting up of mapping tables

  Involve subsequent updating of mapping tables

 

Uncontrollable areas of standardization

 Differing convertibility of currencies, e.g. Maturity of financial assets

 Differing sovereign credit ratings, e.g. Fair value of financial assets

 Differing time zones and geographical locations, e.g. Goods and cash in transits

 Differing legal and regulatory environments, e.g. Cannot escape from local requirements

 

AVESTA Related Articles

  

 Evolution of accounting model

 Postmodern accounting equation

 The rise of group consolidation & budgeting

 Evolution of advanced accounting automation

 Aggregation  Versioning  Elimination  Standardization  Tagging  Alert

 Evaluation of AVESTA computing issues

 Three progressive phases of implementation

 Finance Computing Framework