219普華永道--中石油財務信息系統(tǒng)設計報告

1、PetroChinaRequirements and design of FMIS modificationsFMIS enhancement project,December 1999,Contents,1.Business requirements32.Gap analysis103.Overall approach and design principles134.Business process ove

2、rview155.Overview of system changes186. New data files and associated processes247. System processes for consolidation and reporting29Appendix A - Report formats32,2,,,System Design for FMIS Modification,3,Busi

3、ness requirements,Chapter 1,4,,,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 implemented.,Business requirement ov

4、erview,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 repor

5、ts of the overall ListCo based on the IAS is required 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

6、auditing.All the above reports (except the audit information) will need to be produced along the new PetroChina organization structure as described in the following page. The above reporting requirements are detailed i

7、n the next pages.,5,,,,PetroChina,Level 1PetroChina,Level 2SpecializedCo/Business Group,Level 3Segment,Level 4Type,E&P,...,...,...,Level 5BusinessUnits,...,...,Gas & Pipeline,Downstream,Oil&GasE&

8、P,Natural gas(inc. gas pipeline),Refining &Marketing,Petrochemicals& marketing,Others,Refining,PetroChina reporting structure,Marketing,R&D,China oil,HQBeijing,E&PHuaBei,G&PHuaBei,RefineryHuaBe

9、i,Level 6OperationsUnits,Level 7SuboperationsUnits,Oil field #1,Oil field #2,Oil field #3,District 1,District 2,District 3,6,PRC GAAP consolidation report requires the following data:,Business requirements for PRC co

10、nsolidation,Individual PRC GAAP reports of all entity involved in consolidation.Balance sheet ( PRC GAAP) Income statementCash flow statementInternal transactions reportsInternal transaction listInternal product sa

11、les or purchase reportInternal rendering of service report or internal service purchase reportInternal long-term equity investment report, capital structure reportInternal payable or receivablesRequired information f

12、or internal transactionsCounterpart, transaction type, period, beginning balance, credit amount, debit amount, ending balance,7,There are two types of changes that need to be made to comply with IAS,Business requirement

13、s for IAS consolidation,PRC consolidated financial statements with specific detailsIndividual PRC reports listed earlierLedger reportTransactions with different accounting treatment in IAS and PRC GAAPDevelopment cos

14、ts - E&P segment specificCost of successful well ( succeeded in the period )Assets and depreciation ( straight line method vs UOP) and related tax creditAssets class, accumulated depreciation amount based on reeva

15、luated carrying amount by straight line method; 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-oper

16、ation expenditures )Beginning balance, ending balanceMonthly revaluation of non-current monetary assets & liabilities ( foreign currency item)Historical value ( calculated by exchange rate of occurring date ), ree

17、valuated value of long-term loan( foreign currency), long-term deposit( foreign currency), other long-term monetary assets or liabilities.,8,IAS and PRC GAAP requires the following items for disclosure purpose:,Business

18、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

19、 investment ( PRC GAAP )Bond type, par value, rate, purchased amount, due date, interest of this year, accumulated interest, remarksOther non-equity long-term investment ( PRC GAAP )Debtor, principal, rate, due date,

20、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 balance sheet da

21、teBonds payable ( PRC GAAP )Bond name, par value, issued date, issued amount, due date, interest expense of current year, accumulated interestRelated party transactions ( PRC GAAP & IAS)All data listed in interna

22、l transaction reports, only different entity nameIncome analysis report(IAS)Special deductions relating to exploration and production activities, Income not subject to tax; Expenses not deductible for tax purposes,Move

23、ment of allowance for doubtful accountsBalance at beginning of period, Provision, Deductions, Balance at end of period Movements in allowance for diminution in value of inventoriesBalance at beginning of period; Prov

24、ision; Deductions; Balance at end of periodMovement report of PPE & accumulated depreciationCost: Beginning balance, additions, disposals, ending balance;Accumulated depreciation: Beginning balance, charge for

25、the year, disposals, ending balanceMovement of allowance of investment value diminutionBeginning balance; Provision; Deductions; Ending balanceLoans Analysis ReportDirector’s remuneration reportSalaries, allowa

26、nces and other benefitsContribution to retirement benefit scheme,9,FMIS also need to produce certain information that is required to facilitate annual audit.,Business requirements for annual audit,The required informati

27、on for accounts receivable, long-term equity investment, long-term non-equity investment has been listed in disclosure requirement. The only remaining items for annual audit are listed below:Short-term investmentInvest

28、ment type, investee, security type, par value, historical cost, rate, due date, interest receivable or dividends receivable, premium /discount and its amortisationNotes receivableNotes type, par value, rate, drawer, du

29、e dateOther receivableDebtor, amount, post due daysAssets revaluationAssets class, book value before revaluation, book value after revaluationShort-term loanLoaner, amount, rate, due dateNotes payableOwner, par v

30、alue, rate, due date,10,Gap analysis,Chapter 2,11,Changes in financial reporting process,PetroChina needs to implement a large scale change in its financial reporting process.,,,Current,,Consolidation is done by the aud

31、itors using spreadsheets and manual data collection and manipulationFMIS report is not compliant with PRC accounting standard for joint-stock company.IAS report is produced by the auditors using manual methodReporting

32、 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

33、be compliant with PRC accounting 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

34、 be put in placeNew chart of accounts will be in effect,12,Systems issues,The following systems issues are identified as critical to the ability for PetroChina to be able to do consolidation and produce the required rep

35、orts,REQUIREMENTReconciliation of transactions that occurs across different accounting entities. Some detailed information need to be passed up the corporate reporting structure.,SYSTEM ISSUEThis is difficult to do

36、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.,CONSOLIDA

37、TION PROCESS,REQUIREMENTIAS report have some different grouping of accounts compared to PRC reports In the interim, CNPC requires reporting based on locations in addition to the “normal” reporting procedure along seg

38、mentDisclosure items need to be produced and rolled up,SYSTEM ISSUECurrent FMIS aggregates report up the hierarchy and it is not possible to see or reconstruct the individual accounts, therefore it is not possible to

39、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,,,,

40、,,13,Overall approach and design principles,Chapter 3,14,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 workA

41、void major changes in business processAvoid major changes in FMIS which needs long development time and/or high risk of destabilizing FMISMarginal changes to FMIS is preferred to marginal change in business processCha

42、nges 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 that needs to be transferred should be m

43、inimized.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:,15,Business process overview,Chapte

44、r 4,16,,,,,,,,,LocationLevel 5,SegmentLevel 3,HQ CorpLevel 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,

45、different location,Same segment,different location,Same segment,same location,Different segment,same location,Data flow diagram of rollup process,PRC,PRC,Lgr,Lgr,Notes:Lgr+ = ledger report plus some otherspecial r

46、eports.,17,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 forLe

47、vel 6 HO ledgers,1.3 Receive 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 report

48、and IAS file to Beijing Business group Finance,2.1 Receive PRC reportfrom BU Location segments,2.2 Enter different-segmentsame-locationelimination entries,2.4 Send different-segment,same-location eliminationfile

49、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 Produce bu

50、s. 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 entri

51、es,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 adjustments(corporate l

52、evel),Level 5,Level 3,Level 1,18,Overview of system changes,Chapter 5,19,Data flow diagram - Transaction system,Some changes are required in the FMIS Transaction system to collect required data from all accounting entiti

53、es,,Existingfunctionality,TransactionDB,,Enter accountingentries to FMIS,ProduceLedger report,T1Special disclosureitems,Ledgerreports file,F2Disclosure& IASsupportingdata file,F1Internal transactionda

54、ta file,Newfunctionality,P4Producespecial disclosureitems report,P2Produce internaltransactions data file,P3Enter specialdisclosure & IASsupport data,P1For internal transactions,enter customer/supplier

55、code,20,New or modified functionalities - Transaction system,New data fileF1 - Internal transaction data fileF2 - Disclosure & IAS supporting data fileNew tablesT1 - Special disclosure itemsNew system processes

56、P1- Internal transaction data entryP2 - Internal transaction file exportP3 - Special disclosure items & IAS supporting data entryP4 - Special disclosure items & IAS supporting file export,Changes to FMIS Trans

57、action system is summarized in the following list:,21,,F3Elimination data file,Data flow diagram - Reporting system,Newfunctionality,,,LowerlevelReports,Ledgerreportfiles,Aggregation,P7Eliminationprocess,Existin

58、gfunctionality,AggregatedReports,ConsolidatedLedgerReport,P16Export /printconsolidatedledger report,T2Elimination,F2Disclosure& IASsupportingdata file,F1Internal transactiondata file,T4InternalTransa

59、ction,P13Exportremaininginternaltransaction,EliminationEntries,Internal transaction &eliminationreports &queries,Analyze info anddetermine requiredelimination,P5Query, view, print,,P14Export disclos

60、ures &IAS supportingdata,P8Export Eliminationentries,F4IASadjustmententry file,F3Elimination data file,Ledgerreportfiles,F2Disclosure& IASsupportingdata file,F1Internal transactiondata file,F4

61、IASadjustmententry file,P12Export IAS adjustment,P15PrintIAS reports,T3IAS adj,IAS adjustmententries,Analyze info anddetermine requiredIAS adjustment,P9Query IAS adjustmentdata,IAS adjustmentinfo reports,S

62、ome major changes are required in the FMIS Reporting system,P19Import internaltransaction,P6Enter eliminationentries,P18Import eliminationentries,P17Import IASadjustments,P10Enter IASadjustments,P15PrintPRC

63、reports,P20Import disclosure/IAS support data,T5Consolidationaccount pair,22,New or modified functionalities - Reporting system,New data fileF1 - Internal transaction data fileF2 - Disclosure & IAS supporting d

64、ata fileF3 - Elimination data fileF4 - IAS adjustment entry fileNew data tablesT2 - Elimination entry tableT3 - IAS adjustment entry tableT4 - Internal transaction tableT5 - Consolidation account pair table,The

65、changes to the FMIS Reporting system is shown in the following list:,New system processesP5 - Query info for eliminationP6 - Enter elimination entriesP7 - Elimination processP8 - Export eliminationP9 - Query info fo

66、r IAS adjustmentP10 - Enter IAS adjustmentsP11 - IAS adjustment processP12 - Export IAS adjustmentsP13 - Export remaining internal transactionsP14 - Export disclosure & IAS support dataP15 - Print IAS reportP1

67、6 - Print / Export PRC reportP17 - Import IAS adjustmentsP18 - Import elimination entriesP19 - Import internal transactionsP20 - Import disclosure / AIS support data,23,Required new / modified reports,PRC report &

68、; disclosure requirementPRC Income statement report modificationPRC Balance sheet modificationPRC Cash flow statement modificationInternal transaction reportAging report of accounts receivableLong-term equity