SUPPORTING MULTI-GAAP

REPORTING REQUIREMENTS

4 Ways to Modify Your Hyperion

Financial Management Application

PICTURE RESULTS.
Supporting Multi-GAAP Requirements

There are several ways to address IFRS (International Financial

Reporting Standards), or even multi-GAAP (Generally Accepted
A custom
Accounting Principles) reporting solutions, in Hyperion Financial
Management. The option that best works for your company will be dimension that
determined by:
Business requirements categorizes your
Current state of your consolidation application
Organizational preferences
data by source
Below are four different ways to modify your HFM application to or data type
support multi-GAAP reporting requirements.
is considered
1. Custom Dimension (Source or Data Type)
A custom dimension that categorizes your data by source or data type is
leading practice
considered leading practice today. This functionality allows you to load
your data in US-GAAP and then make adjustments to that data to meet today.
multi-GAAP reporting requirements.

The screenshot below is a sample data type hierarchy that could

be utilized to support an organizations multi-GAAP reporting
requirements.

Figure 1

2. Scenario
Using a scenario to segregate your IFRS or multi-GAAP data from US-
GAAP is also another option. This solution means that you will not have
to make adjustments to your data to get it to support your reporting
requirements.

PICTURE RESULTS.
Supporting Multi-GAAP Requirements

Considerations when using the scenario approach include:

A custom
Separate location in FDMEE to handle mapping and loading of
data dimension that
Technically loading in the data twice (US-GAAP and IFRS),
therefore increasing the size of your database categorizes your
If there are still multi-GAAP reporting requirements, how many
scenarios would you then need to satisfy those requirements? data by source
Figure 2

or data type
3. Accounts
Creating a separate account hierarchy group to support your IFRS is considered
reporting requirements is another solution that most companies are
gravitating toward. Having a detailed chart of accounts in HFM can be leading practice
beneficial, as the definitions between IFRS and US-GAAP differ. Where
those differences exist, accounts can be shuffled from one roll-up to
another in the appropriate hierarchy.
today.
Using the HFM Sample application as an example, notice the
summarization of accounts rolling into total Assets (US-GAAP
reporting) in Figure 2.
Figure 3

The next example, Figure 3, adds a bit more detail to the same
grouping of accounts.

Figure 4 shows how the same roll-up accounts can be moved around in
a separate hierarchy to support IFRS reporting requirements (note that
parent accounts begin with an I_ and IntercoPrepaid has been made a
child of I_Receivables).

Again, having the extra level of detail in my account hierarchy assists

with this simple creation of an alternative reporting hierarchy.

Considerations when using this approach include:

New parent accounts would be required Figure 4

Maintenance as new accounts, they need to be set up in both

hierarchies or at least confirmed that they exist in both

PICTURE RESULTS.
Supporting Multi-GAAP Requirements

A separate account hierarchy to support IFRS reporting requirements means that reports can be quickly
built off that account hierarchy
A separate account hierarchy typically works best for an IFRS reporting solution, but this is probably not
a good option when trying to support multi-GAAP reporting requirements, as the maintenance would be
very cumbersome

4. Entities
This approach entails adding additional entities to capture multi-GAAP adjustments (not to be confused with
adding one US-GAAP and one multi-GAAP entity). This approach would require adding additional hierarchies
to accommodate for the various reporting needs. While not necessarily the best approach, it is something to
consider if this meets your organizations requirements, preferences, and situation.

Its worth noting that IFRS 10, the standard that governs Consolidated Financial Statements, is slightly different
than US-GAAP. Both methods require entities that are subject to the control of the reporting entity to be
consolidated; however, the definition for control varies between the two standards.

Summary
The solutions highlighted above are samples of various methods US-Analytics has implemented to solve multi-
GAAP/IFRS reporting requirements. The solution that works best is contingent upon your companys unique set
of circumstances, requirements, and state of your current HFM application.

When making your decision, also keep in mind how it will impact the rest of your application:
FDM/FDMEE changes to import formats, mapping, locations
Financial Reporting update reports to reflect changes to the application
Rules is your current HFM application flexible enough to allow changes with minimal impact to rules?

PICTURE RESULTS.
Supporting Multi-GAAP Requirements

About US-Analytics
US-Analytics is a full-service consulting firm specialized in Oracle Dallas, Texas
Enterprise Performance Management and Business Intelligence solutions. 600 East Las Colinas Blvd.
Applying decades of experience along with advanced degrees and Suite 2222
certifications, our team of functional and technical experts have helped Irving, TX 75039
hundreds of the nations largest and brightest companies bridge the gap
between business goals and IT deliverables. Houston, Texas
2500 CityWest Blvd.
To ensure end-to-end coverage of your technology, we provide a complete Suite 300
range of services: process and advisory, infrastructure, implementations, Houston, TX 77042
upgrades and migrations, training, and managed services.
info@us-analytics.com
Learn more at www.us-analytics.com. 877.828.USAS

PICTURE RESULTS.