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Attend IOFM Workshops at Oracle OpenWorld 2015

Oracle is very pleased to offer twoworkshops presented by the Institute of Financial Management (IOFM). CPEcredits are provided for both of these workshops: 1. IOFM Workshop – Modern Risk Management; Framework & BestPractices to Develop an Internal Controls & Compliance Program Speaker: Chris Doxey, CAPP, CCSA, CICA, CPC Monday 2:30 – 3:30 Hotel Zelos Description: Assessing compliance to internal and regulatory controlrequirements is mission critical!  Non-compliance can lead to fines,disruption of operation, damage of company reputation, and significantfinancial liabilities.  2. IOFM Workshop – Your Top Procure-to-Pay Risks & the Casefor Automating Controls Speaker: Jon Casher, PhD Tuesday: 2:30 – 3:30 Hotel Zelos Description: This unique and interactive workshop will analyze “reallife” case studies from the all components of the Procure to Pay (P2P) processthat include: Procurement, T&E, P-Card, AP, and Disbursements. Theattendees will have an opportunity to discuss “what went wrong” and willdetermine the key internal controls that were missing. Space is Limited,please contact dane.roberts@oracle.com (Oracle GRC Product Strategy)for availability. Click here for the Oracle Risk Management Focus on Doc for the complete listing of Risk Management sessions at Oracle OpenWorld 2015. We look forward to seeing you there!!

Oracle is very pleased to offer two workshops presented by the Institute of Financial Management (IOFM). CPE credits are provided for both of these workshops: 1. IOFM Workshop – Modern Risk Management;...

Finance and HR: A Marriage Made in Cloud Heaven

By Dee Houchen What’s keeping CFOs up at night? In conversations with chief financial officers, there are a number of business issues that are common across industries and geographies. One such issue—finding and retaining the best finance talent—is a topic that can dramatically impact the CFO’s effectiveness within his or her own organization. Over the past several years, the role of the CFO has evolved from someone who keeps the books, to a more visionary and advisory role. Modern CFOs provide the essential reports, insight, and information needed to drive strategy around the boardroom table. This requires a new skill set—much different from the traditional accounting role. The best CFOs have learned to ask themselves the following questions: How is the role of finance officer changing? What sort of skills do finance professionals need today? How do I attract and retain the best talent? Do I have the right technology in place to keep my best and brightest engaged and intellectually challenged? Wall Street Journal Custom Studios recently issued a report that addresses some of the above questions. Winning the War for Finance Talent: Game Plan for the Digital Age provides six recommendations on how finance leaders can improve bench strength within their own organizations. This infographic summarizes the report’s six recommendations: Recruit—and pay for—talent armed with a greater variety of skills. Fill talent gaps by grooming from within. Ask the right questions when analyzing data—you want answers that propel your business. Share data with your team or it has no value. Use technology and data insights to read your customers’ needs more accurately—making you a better business partner. Upgrade your technology to attract and retain the best and the brightest. If you don’t, you may lose gifted people to more modern rivals. On the last recommendation, many finance offices are looking to the cloud to not only update their technology, but improve efficiency between finance and HR. A modern ERP and HCM cloud—with built-in social capabilities, data analysis and dashboards, designed for today’s mobile workforce—can provide the technology edge that CFOs need to attract, and retain, the best talent. Read more in the recent Forbes.com articles, "How to Win the Finance Talent You Need" and "Turning Bean Counters into Difference-Makers: How Corporate Finance is Changing with the Times." Dee Houchen is senior principal product marketing director for Oracle ERP Cloud.

By Dee Houchen What’s keeping CFOs up at night? In conversations with chief financial officers, there are a number of business issues that are common across industries and geographies. One such...

Deferred Revenue Replaced by Revenue Performance Obligations

I was talking to SeamusMoran again the other day. He was saying hehad some sympathy for the existing US GAAP folk who had so much to unlearn inrespect of the new revenue recognition standard. He told me thatwith deferred revenue, you took a sales invoice, and predicted when you’d putthat into revenue in the P&L.  You’d add carve-ins and deductcarve-outs and deduct releases to the P&L. But the newstandard takes all of that away.  Instead of accounting for deferredrevenue, sales invoices you had to postpone on the sale side, you now have toaccount for performance obligations, what you owe customers. It is a bigchange.  It is not sales invoice-based. The FASB & IASB spelled outthe four steps to get a performance obligation value, and they did it so youwould get to a performance obligation value, not a delta to a salesinvoice.  He said he can recite them: Step 1, ID the contract.  Step2, ID your promises (assign ID numbers), explicit and implicit, to customers asperformance obligations.  Step 3, value the transaction in total, what areyou going to get in total.  Step 4, using standalone selling prices (SSP) orestimated selling prices (ESP), allocate the total to the performanceobligations.  At this stage,you now have valued your performance obligations.  No need to go lookingat invoices, carvings, or releases. Sure, you may not have all the necessarydata, or the quantities aren’t known yet, etc., but this is data you aresupposed to book keep, at which you should value revenue, contract liabilities,and contract assets.  Quantity times performance obligation times SSP orESP. He says that,actually, embracing the performance obligation idea makes this whole standardmuch more easy to digest. Stay tuned forthe next in our series of blog posts about the new revenue recognitionstandard. 

I was talking to Seamus Moran again the other day. He was saying he had some sympathy for the existing US GAAP folk who had so much to unlearn in respect of the new revenue recognition standard. He told...

Pennsylvania Treasury to Save Millions by Innovating with Oracle GRC Solution

Pennsylvania (PA) Treasury undertook a major financialtransformation project to improve audit controls over its payment process, andOracle GRC is an integral component of the solution. They are using Oracle GRC’s advanced auditalgorithms to identify and prevent error, waste, and fraud prior to processingbillions of dollars in payments. PA Treasury’s innovative use of Oracle GRC is expected tohelp the department increase the average annual savings. “We saw an innovativeopportunity to use Oracle GRC in our fiscal review process that, we believe,will help us to improve our pre-transactional auditing capabilities,” said PNNarayanan, chief information officer, Pennsylvania Treasury. “The Pennsylvania Treasury’s groundbreaking use of OracleGRC and Oracle’s PeopleSoft to stop financial leakage is paving the way forother organizations to improve profits, strengthen internal controls, andprovide a modern platform to meet the recent update to the COSO framework,”said Sid Sinha, senior director, Oracle GRC Product Strategy. Read the full press release here. To learn moreabout how Oracle GRC continuously monitors 100% of transactions to help PATreasury and other organizations achieve their objectives, click here.

Pennsylvania (PA) Treasury undertook a major financial transformation project to improve audit controls over its payment process, andOracle GRC is an integral component of the solution. They are...

The New Revenue Recognition Standard: Performance Matters

Last week I was talking to Seamus Moran, ourresident accountant and we chatted about the new Revenue recognition Standard,Topic 606 and IFRS 15. He’d just been speaking at a couple of conferences,and noted that the fundamentals of the standard are beginning to click withpeople. A few months ago, he said, it wasn’t obvious topeople that the core principle, “you should recognize revenue as you transfergoods and services to customers” was a mandate to recognize revenue as youperformed.  That is, as you delivered, executed and serviced.  Butnow, that mandate was being more widely understood: you must recognize revenueas you perform. One example is a software company that ships a gamewith some missions or episodes missing.  Under today’s GAAP, they wouldhave to defer all the revenue until the missing episodes were published. Underthe new standard, they would have to – not just “could” – recognize the revenuethat related to the delivery they had performed, and postpone recognizing therest of the revenue until they delivered the delayed missions.  A keyquestion is how to identify and value a performance obligation of this nature,especially since this company doesn’t sell missions separately. But that’s a blog for another day.

Last week I was talking to Seamus Moran, our resident accountant and we chatted about the new Revenue recognition Standard, Topic 606 and IFRS 15. He’d just been speaking at a couple of conferences,and...

JD Edwards EnterpriseOne and XBRL Reporting

By Karen Brown on August 7, 2014 Do you haverequirements to provide Financial Statements and Reports in XBRL format? Are you wondering exactly what XBRL is? XBRL is a reporting language based onXML. XBRL is specifically used forsubmitting financial statements and reports to governments and other governingbodies (i.e. US SEC, German Government). Each governing body has different requirements for the types of reportsto be submitted and the content of each of them. Details of XBRL: XBRL Standards are known as XBRL Taxonomies. These taxonomies are the definitions of the documents,formats, and elements that are needed for a specific XBRL requirement Documentsare things like a Balance Sheet or Profit & Loss Elementsare things like net profit, depreciation expense, statement annotations National jurisdictions have different accountingregulations, so each may have its own taxonomy for financial reporting. Many different organizations, including regulators,specific industries or even companies, may also require taxonomies to covertheir own business reporting needs. These taxonomies are governed by the XBRLInternational Standards Board Newtaxonomies are continually being added here are30+ existing taxonomies which are being updated on a regular basis There are many solutions availablefor your XBRL requirements. OracleHyperion Disclosure Management is Oracle’s solution for XBRL. To generate XBRL tags andcomplete filings for JD Edwards EnterpriseOne with Oracle Hyperion DisclosureManagement, here are the steps: Download the XBRL required taxonomy from the XBRLWebsite into Hyperion Disclosure Management to create acompany taxonomy. Publish the report from JD Edwards EnterpriseOne toMicrosoft Excel or Microsoft Word. Create the final report in the Microsoft programs andperform the XBRL tag mapping in Oracle Hyperion Disclosure Management. Submit the company taxonomy and XBRL instance documentto the proper authority. Get more details about Oracle Hyperion Disclosure Management. There are alsomany 3rd party XBRL solutions in the marketplace to choose from witha wide variety of price points. A few ofthese solutions are: Crossfire - http://rivetsoftware.com/crossfire/ Semansys - http://www.semansys.com Fujitsu - http://www.fujitsu.com/global/services/software/interstage/solutions/xbrl C

By Karen Brown on August 7, 2014 Do you have requirements to provide Financial Statements and Reports in XBRL format? Are you wondering exactly what XBRL is? XBRL is a reporting language based onXML....

Oracle Delivers New Generation Revenue Recognition Solution

  Revenue is a fundamental yardstick of a company's performance, and one of the most important metrics for investors in the capital markets. So it’s no surprise that the accounting standard boards have devoted significant resources to this topic, with a key goal of ensuring that companies use a consistent method of recognizing revenue.Due to the myriad of revenue-generating transactions, and the divergent ways organizations recognize revenue today, the IFRS and FASB have been working for 12 years on a common set of accounting standards that apply to all industries in virtually all countries. Through their joint efforts on May 28, 2014 the FASB and IFRS released the IFRS 15 / ASU 2014-9 (Revenue from Contracts with Customers) converged accounting standard. This standard applies to revenue in all public companies, but heavily impacts organizations in any industry that might have complex sales contracts with multiple distinct deliverables (obligations). For example, an auto dealer who bundles free service with the sale of a car can only recognize the service revenue once the owner of the car brings it in for work. Similarly, high-tech companies that bundle software licenses, consulting, and support services on a sales contract will recognize bundled service revenue once the services are delivered. Now all companies need to review their revenue for hidden bundling and implicit obligations.Numerous time-consuming and judgmental activities must be performed to properly recognize revenue for complex sales contracts. To illustrate, after the contract is identified, organizations must identify and examine the distinct deliverables, determine the estimated selling price (ESP) for each deliverable, then allocate the total contract price to each deliverable based on the ESPs. In terms of accounting, organizations must determine whether the goods or services have been delivered or performed to the customer’s satisfaction, then either book revenue in the current period or record a liability for the obligation if revenue will be recognized in a future accounting period. Oracle Revenue Management Cloud was architected and developed so organizations can simplify and streamline revenue recognition. Among other capabilities, the solution uses business rules to efficiently identify and examine contracts, intelligently calculate and allocate deliverable prices based on prescribed inputs, and accurately recognize revenue for each deliverable based on customer satisfaction."Oracle works very closely with our customers, the Big 4 accounting firms, and the accounting standard boards to deliver an adaptive, comprehensive, new generation revenue recognition solution,” said Rondy Ng, Senior Vice President, Applications Development. “With the recently announced IFRS 15 / ASU 2014-9, Oracle is ready to support customer adoption of the new standard with our Revenue Management Cloud,” said Rondy.Oracle Revenue Management Cloud, an integral part of Oracle Financials Cloud, helps organizations comply with accounting standards, provides them with confidence that reported revenue is materially accurate, and simplifies the accounting process for revenue recognition.Stay tuned to this blog for regular updates on Oracle Revenue Management Cloud. We also invite you to review our new oracle.com ERP pages @ oracle.com/erp. We will be updating these pages very soon with more information about Oracle Revenue Management Cloud.

  Revenue is a fundamental yardstick of a company's performance, and one of the most important metrics for investors in the capital markets. So it’s no surprise that the accounting standard boards...

Empowering Modern Finance: The CFO as Technology Evangelist

Guestpost by Karen dela Torre, Vice President, Oracle Corporation We are observing a tangible shift in the financefunction. Modern technologies like cloud,mobile, and big data are helping to accelerate the current transformation of the role of finance. In order to gauge exactly where the finance function currentlystands and what the future holds, we recently partnered with Accenture on aglobal research study, “Empowering Modern Finance: The CFO as Technology Evangelist.” As eWEEK summarized, the study highlights theopportunity for CFOs and other finance executives to be technology evangelists.I recapped this in my previous post, noting theambition to be a tech evangelist is there, but a gap remains between aspirationand reality. ZDNet explored this significant opportunityfor CFOs. While there is consensus around the finance function leading businesstransformation, only a small majority is actually leading the way. However,steps are being taken. Baseline emphasized thatfinance professionals are now bolstering their technical skills whileintegrating analytical tools and modern applications. But that’s not all. As Financial Executive discussed, the studyalso highlighted how the finance function is leveraging modern technologies,like mobile and cloud, to get real-time insights and to drive businesstransformation forward. In fact, 28 percent of respondents are already usingthe cloud to support budgeting, planning, and forecasting, and another 34percent plan to move those areas into the cloud within the next year. That’s alot of CFO love for the cloud, but I’m not surprised! As evidenced by the study, the finance function is drivingchange and taking on the role of technology evangelist in organizations. Ithink this shift in finance will continue and CFOs will embrace modern technology to gain a competitive advantage andpositively impact the bottom line. 

Guest post by Karen dela Torre, Vice President, Oracle Corporation We are observing a tangible shift in the finance function. Modern technologies like cloud,mobile, and big data are helping to...

Oracle's Leadership in Finance Award Nominations Now Open!

Now in its third year, Oracle’s Leadershipin Finance Award is quickly becoming the award of choice for visionary financeexecutives who have demonstrated outstanding leadership in leveraging Oraclesolutions to transform their businesses. Last year’s global winners werehonored by Oracle Chairman Jeff Henley at the CFO Summit @ Leaders Circle, and sharedtheir success on stage and in these videos: AT&T CFOJohn Stephens (North America), Ricoh EuropeCFO Ian Winham (EMEA), Grupo FármacosCFO Otto Kroboth (Latin America), and NationalAustralia Bank Finance GM Gary Lennon (APAC) Customers, partners, and Oracle employees areurged to submit their nominations now for the 2014 Leadership in Finance Awardsbefore nominations close on June 20,2014. CFOs, controllers, chiefaccounting officers, and VPs of finance from North America, EMEA, LAD and APAC areall eligible for consideration, as long as they were directly involved in thesuccess of the Oracle solution deployed. Full details and submission guidelinesare available on the OracleExcellence Awards home page. Award winners will be announced the week ofOracle OpenWorld and will be honored once again by Jeff Henley at the 2014 CFOSummit @ Leaders Circle. Please email comments about this story to anne.ozzimo@oracle.com.

Now in its third year, Oracle’s Leadership in Finance Award is quickly becoming the award of choice for visionary finance executives who have demonstrated outstanding leadership in leveraging Oracleso...

The CFO as Technology Evangelist

Guest post by Karen dela Torre, Vice President, Oracle Corporation Finance has historicallybeen at the forefront of technology adoption. Earlier technology investments focused on process efficiency andstandardization. After all, closing thebooks faster and keeping costs down are table stakes. Today, finance isincreasingly called upon not just to contain costs and keep score; modern financeseeks to change the game by providing the business with data-driven acumen onthe best ways to drive innovation and growth. So how is modern financeusing technology today to meet these new demands? To provide more insight onhow to define and benchmark the key attributes of the modern,technology-enabled finance function, Oracle partnered with Accenture to sponsora global research study conducted by Longitude Research. The study, “EmpoweringModern Finance: The CFO as Technology Evangelist,”features insight from 1,275 CFOs, senior finance executives and line ofbusiness executives from organizations of varying sizes and industries aroundthe world.    And while the study clearly shows that many CFOs are making major stridestowards creating a more productive and technology-enabled finance function,it’s clear that much work still needs to be done. In particular, here are a fewkey takeaways I wanted to highlight: CFOs are seen as tech evangelists, but a gap remains between ambition andreality: · More than two-thirds of respondents agree the CFO is astrong evangelist for the transformational potential of technology. · Nearly three-quarters of finance executives believe newtechnologies such as the cloud, mobile technology and social media will changehow finance is structured and run. · But, and it’s a BIG BUT, only 20% of C-suite executivesbelieve their finance organizations have adopted leading-edge technologies. New skills and analytics capabilities are needed to execute on modernfinance’s mandate: · Nearly half of respondents saw an increase in the number offinance analysts hired over the past two years. · 23% of non-finance respondents feel that the ability offinance to provide an up-to-date view of performance against budget “fallsbelow expectations” and 42% think they could do far better. CFOs are embracing the cloud to modernize finance: · 28% of respondents are already using the cloud to supportbudgeting, planning and forecasting, and another 34% plan to move those areasinto the cloud within the next year. · More than two-thirds of executives surveyed have eitheralready adopted a cloud-based system in some part of their organization forcore financials (24%), or are planning a road map for doing so (45%). For more information, you can find the pressrelease and the fullreport here. If you’d like to hear the findingsdiscussed in more detail, make sure to tune into the webcast on March 19 at 12:00noon ET. The webcast will feature Oracle Chairman of the BoardJeff Henley, Scott Brennan, managing director in Accenture Finance &Enterprise Performance, and Stuart Brown, senior vice president and CFO, RedRobin International, Inc. To register,  visit: http://pub.vitrue.com/ZTgI

Guest post by Karen dela Torre, Vice President, Oracle Corporation Finance has historically been at the forefront of technology adoption. Earlier technology investments focused on process...

Using Technology to Ease the Pressure Cooker Environment of the Modern CFO

Guest Post by Karen dela Torre, Vice President, Oracle Corporation Thefinance function as we know is seeing big change.  We've been talking about thistransition here at Oracle for quite awhile. Last year in a survey Oracle conductedwith Accenturewe explored how the role of the CFO has evolved from financial overseer tocorporate strategist and change agent. The results from that study illustratedthat this transition is not only happening, but it’s happening very quickly. We’veentered into the era of Modern Finance. Not only are CFOs depended on to  drive the finance function forward, but increasinglythey also play a vital part in all strategic business decisions.  In fact, it’sfair to say that today’s CFO lives in a completely different environment thanfive years ago. Put simply, CFOs live in apressure cooker environment. Withthe pressure to help identify new opportunities, products and services thatwill deliver growth and generate revenue, the modern CFO is undoubtedlypresented with challenges and must leverage existing and new assets to deliveron the new mandate to provide strategic guidance and insight to the business. Howcan CFOs meet these challenges and stay ahead of their competition? One thingthat comes to mind is technology. Technologyenables CFOs to drive change and innovation. Mobile, cloud, social andanalytics are just a few types of technology that are completelyrevolutionizing the way organizations function. Implement these technologiesand organizations can gain a significant competitive advantage. CFOsare beginning to understand this and how technology can drive change withintheir organization that positively impacts revenue. For example, take thecloud. The cloud is reshaping finance best practices around buying decisions asorganizations duke out the ROI of cloud versus on-premise. Cloud technologiessave on overhead costs with less infrastructure, timely updates, and moreproductive employees.   ModernFinance will be empowered through technology and CFOs are taking note. For more information about the changing role of the CFO and best practices forkeeping pace with the ever-changing landscape, visit Oracle CFOCentral at www.oracle.com/cfo. 

Guest Post by Karen dela Torre, Vice President, Oracle Corporation The finance function as we know is seeing big change.  We've been talking about thistransition here at Oracle for quite awhile. Last...

ERP Customizations...Are your CEMLI’s Holding You Back?

Upgrading your Oracle applications can be an intimidatingand nerve-racking experience depending on your organization’s level ofcustomizations. Often times they have an on-going effect onyour organization causing increased complexity, less flexibility, andadditional maintenance cost. Organizations that reduce their dependency oncustomizations: Reduce complexity by up to 50% Reduce the cost of future maintenance andupgrades  Create a foundation for easier enablement of newproduct functionality and business value Oracle Consulting offers a complimentary service called Oracle CEMLI Benchmarkand Analysis, which is an effective first step used to evaluate your E-BusinessSuite application CEMLI complexity.  The service will help yourorganization understand the number of customizations you have, how you rankagainst your peer groups and identifies target areas for customizationreduction by providing a catalogue of customizations by object type, CEMLI IDor Project ID and Business Process. Whether you’re currently deployed on-premise, managedprivate cloud or considering a move to the cloud, understanding yourcustomizations is critical as you begin an upgrade.  Learn how you canreduce complexity and overall TCO with this informative screencast. For more information or to take advantage of this complimentary service today,contact Oracle Consulting directly at ask-oracleconsulting.com_us@oracle.com. 

Upgrading your Oracle applications can be an intimidating and nerve-racking experience depending on your organization’s level of customizations. Often times they have an on-going effect onyour...

PeopleSoft 9.2 Financial Management Training – Now Available

A guest post from Oracle University.... Whether you’re part of a project teamimplementing PeopleSoft 9.2 Financials for your company or a partnerimplementing for your customer, you should attend some of the new trainingcourses.  Everyone knows project team training iscritical at the start of a new implementation, including configuration trainingon the core application modules being implemented. Oracle offers these courses to help customersand partners understand the functionality most relevant to complete end-to-endbusiness processes, to identify any additional development work that may benecessary to customize applications, and to ensure integration betweendifferent modules within the overall business process. Training will provide you with the skillsand knowledge needed to ensure a smooth, rapid and successful implementation ofyour PeopleSoft applications in support of your organization’s financialmanagement processes - including step-by-step instruction for implementing,using, and maintaining your applications. It will also help you understand theapplication and configuration options to make the right implementation decisions. Courses vary based on your role in theimplementation and on-going use of the application, and should be a part ofevery implementation plan, whether it is for an upgrade or a new rollout. Here’s some of the roles that should considertraining: · Configuration or functional implementers · Implementation Consultants (Oracle partners) · Super Users · Business Analysts · Financial Reporting Specialists · Administrators PeopleSoftFinancial Management Courses: NewFeatures Course: · PeopleSoftFinancial Solutions Rel 9.2 New Features FunctionalTraining: · PeopleSoftGeneral Ledger Rel 9.2 · PeopleSoftPayables Rel 9.2 · PeopleSoftReceivables Rel 9.2 · PeopleSoftAsset Management Rel 9.2 · ExpensesRel 9.2 · PeopleSoftProject Costing Rel 9.2 · PeopleSoftBilling Rel 9.2 · PeopleSoftPS / nVision for General Ledger Rel 9.2 AcceleratedCourses (include content from two courses for moreexperienced team members): · PeopleSoftGeneral Ledger Foundation Accelerated Rel 9.2 · PeopleSoftBilling / Receivables Accelerated Rel 9.2 · PeopleSoftPurchasing / Payable Accelerated Rel 9.2 ViewPeopleSoft Training Overview Video

A guest post from Oracle University.... Whether you’re part of a project team implementing PeopleSoft 9.2 Financials for your company or a partnerimplementing for your customer, you should attend some...

AP Thought Leader to Impart Knowledge during Oracle Advanced Controls OOW 2013 Session

OracleOpenWorld (OOW) 2013 is shaping up to be a break-out year for Oracle AdvancedControls. Among other highly-anticipated events, we are very pleased toannounce that Mary S. Schaeffer, publisher and editorial director for AccountsPayable Now & Tomorrow (AP Now), will be co-presenting with Cisco Systemsat a session entitled “Top 10 Advanced Controls for Procure-to-Pay to Improvethe Bottom Line” (session ID is CON8814). Maryis a nationally recognized accounts payable expert. She is the author of over15 business books, most focused on accounts payable issues, as well as amonthly newsletter and a free weekly e-zine. She speaks regularly at industryevents, one-day seminars, conferences and online events. Inthe OOW session Mary plans to talk about how automated control solutions suchas Oracle Advanced Controls can stop cash leakage and contribute to the bottomline. Organizations that have made the most progress in shifting away from manual controls are adopting advanced control solutions and showing what a difference those controls make, says Mary. "Controls are more critical than ever with regards to the accounts payable process. Luckily, technology can now play a larger role in helping organizations with these controls, helping reduce erroneous payments and preventing fraud," Mary says. Weexpect a full-house at this session so be sure to register early! Learnmore about AP Now. And most importantly, clickhereto register for OOW 2013 today!!

Oracle OpenWorld (OOW) 2013 is shaping up to be a break-out year for Oracle Advanced Controls. Among other highly-anticipated events, we are very pleased toannounce that Mary S. Schaeffer, publisher...

Oracle Receives “Strong Positive” Rating in “MarketScope for Segregation of Duty Controls Within ERP and Financial Applications”

A guest post by Sid Sinha, SeniorDirector, Oracle GRC Product Strategy Oracle has received a rating of “Strong Positive” in theGartner’s “MarketScopefor Segregation of Duty Controls Within ERP and Financial Applications[1].” Gartner defines the ERP Segregation of Duties (SOD) ControlMarket as software providing the following functions: SOD Analysis, Compliant Provisioning,Transaction Analysis, Emergency Privilege Management, Role Management andPrivilege Attestation. According to Gartner, a solution rated “Strong Positive” isviewed as a provider of strategic products, services or solutions. The reportframework counsels: · Customers: Continue with planned investments. · Potential customers: Consider this vendor astrong choice for strategic investments. OracleAdvanced Controls includes a comprehensive SOD capability for anyapplication including Oracle ERP platforms and financial applications. OracleAdvanced Controls addresses SOD issues at a finer level of detail than ERP roleand permission management, providing unique capabilities to find and fix usersecurity issues across multiple instances at the same time. This capability can be integrated with a userprovisioning system and this integration comes pre-built for Oracle IdentityManagement, Oracle Fusion Applications, the Oracle E-Business Suite and Oracle’sPeopleSoft. Furthermore, Oracle Advanced Controls can scanall business transactions in the system to find actual instances SOD risk andhas embedded agents to modify application behavior within the Oracleapplication suite itself, thereby restricting the options visible to Oracle EBSusers, including administrators. We believe that to prevent financial leakage, corporatefraud and ensure regulatory compliance, Advanced Controls must be enforced atall levels of an organization. Strong SOD policies are dependent upon controllingaccess to critical business applications such as enterprise resource planning,customer relationship management, and supply chain management systems. AdvancedControls, part of Oracle GRC Applications, enables businesses and organizationsto manage, remediate, and enforce user access policies to ensureeffective SOD. For more perspective on the need for segregation of dutiesand the importance of user access controls please visit the resourcessection of our web page. Disclaimer: Gartner does notendorse any vendor, product or service depicted in its research publications,and does not advise technology users to select only those vendors with thehighest ratings. Gartner research publications consist of the opinions ofGartner's research organization and should not be construed as statements offact. Gartner disclaims all warranties, expressed or implied, with respect tothis research, including any warranties of merchantability or fitness for aparticular purpose. [1]“MarketScope for Segregation of Duty Controls Within ERP and FinancialApplications,” by Paul E. Proctor, May 14, 2013.

A guest post by Sid Sinha, Senior Director, Oracle GRC Product Strategy Oracle has received a rating of “Strong Positive” in the Gartner’s “MarketScopefor Segregation of Duty Controls Within ERP and...

The CFO as Catalyst for Change

A guest post by John O'Rourke, Vice President Product Marketing, Oracle Over the past few months, we’ve taken a microscope to the role of the CFO. The changing economic environment is creating new demands and opportunities for CFOs around the world. At Oracle, we are committed to helping CFOs navigate and succeed, and recently partnered with Accenture on a global research study, “The CFO as Catalyst for Change.” As the Wall Street Journal’s CFO Journal summarized, the study highlights the evolution of the CFO’s role from financial overseer to corporate strategist and change agent. I discussed the main findings in a previous blog post, but wanted to share some great insights on the study from industry influencers.InformationWeek’s Doug Henschen discussed the increasing role CFOs are playing in the technology department, highlighting the similarity between what has also been happening with CMOs. I think the CFO’s role in technology decisions can have a bigger impact and is worth noting.Without a doubt, CFOs are taking technology seriously! CFO Magazine highlighted the skills perspective in their article on the study, pointing out that when asked about where CFOs could improve their skills and capabilities, technology knowledge was ranked second only to industry knowledge. Now, that’s saying something!But they are not just focusing on ways to enhance their knowledge base -- CFOs also understand the importance of new technology. A Wall Street & Technology article on the study stressed how CFOs are increasingly citing disruptive technology as critical for success. In fact, 79 percent of respondents viewed access to information as a key driver of organizational agility, while 57 percent viewed investments in big data and analytics as a key source of competitive advantage.The study shows that the role of the CFO has dramatically changed and it continues to evolve at a rapid pace. Now, CFOs must be catalysts for change and help their organizations transform and thrive in today’s global economy. 

A guest post by John O'Rourke, Vice President Product Marketing, Oracle Over the past few months, we’ve taken a microscope to the role of the CFO. Thechanging economic environment is creating new...

Integrating the New Financials Apps in the Cloud with Your Existing Apps

A guest post by Joe Gum, Senior Director, Financials Product Strategy, Oracle Applications A quick YouTube search will bring up hundreds of videos of thought leaders and happy customers talking about adopting the cloud. We’re seeing anecdotal evidence at every CloudWorld event that business owners and users are steadily moving in that direction. And we’re seeing the same progression in our cloud conversations (and signed deals) with our customers.The cloud delivers business agility, increased storage, and cost savings -- all good reasons to embrace this new service. But at some point the question arises: will the new solutions integrate with my existing enterprise applications? And more specifically, will the new Oracle Financials Cloud Service integrate with my older enterprise applications?I’m here to answer that question for you. Read on to learn how Oracle Financials Cloud Service can meet your integration requirements using Oracle Application Development Framework (Oracle ADF Services), ADF Desktop Integration, File-Based Data Import, and reporting tools.ADF Services (commonly referred to as Web Services), provide a standardized way of integrating two Web-based applications through XML data exchange. A real-life example might be a banking Web service that has functions for checking an account, printing a statement, and depositing and withdrawing funds. These functions are described in a Web service description (WSDL) file that any consumer can invoke to access the banking Web service. The Web service consumer (using a desktop application) invokes the Web service by submitting a request in the form of an XML document to the Web service provider.Oracle Financials Cloud Service uses Oracle’s ADF Business Components (ADF Service) to create its Web services, and all the available Web services are documented in detail in the Oracle Enterprise Repository.Let’s move on to ADF Desktop Integration (ADFdi). It also is part of the ADF framework and offers Excel spreadsheet templates to provide validated entry of large volumes of data into Oracle Financials Cloud Service. The integration provided with ADFdi includes pick lists to search for valid values, validation during data entry, error messages, and immediate submission of transactions directly from Excel.Next up is the File Based Data Import (FBDI) process. It is another option for getting information into Oracle Financials applications. External data can be extracted and formatted into a .csv source file and uploaded to the server for transfer into interface tables and import into Oracle Financials applications. All of the data is validated during import to insure its integrity.Finally, reporting tools can be used to extract data and import into external systems via XML, Excel, or other file types. Oracle Financials Cloud Service has four reporting tools which can be used to extract data from Oracle Financials and import into your external systems. BI Publisher delivers high-volume transactional reports, such as Invoice Registers or Trial Balance reports, that can be configured to extract the data in Rich Text Format or XML Oracle Transactional Business Intelligence for Financials provides the ability to build custom queries on transactional data, and the output can be downloaded to Excel Financial Reporting Center enables real-time reporting based on multi-dimensional general ledger balances. Reports can be produced in multiple output formats, such as HTML, PDF, Excel, and other MS Office products Smart View is an Microsoft Office plug-in for financial users to perform ad hoc, real-time, multi-dimensional analysis on general ledger balances in Excel Don’t let integration issues cause gridlock in your decision-making process to adopt the cloud for your financial operations. Any concerns you have about integrating to other systems can be met using the tools available in Oracle Financials Cloud Service. Please take advantage of this Oracle white paper on the same topic that offers a bit more detail and helpful diagrams. 

A guest post by Joe Gum, Senior Director, Financials Product Strategy, Oracle Applications A quick YouTube search will bring up hundreds of videos of thought leadersand happy customers talking about...

EPM and ERP - Better Together

A note from John O'Rourke, Vice President, Product Marketing. I recently had the pleasure to attend and present at the Collaborate 2013 user conference in Denver, Colorado. This event is run by three of the Oracle user groups – OAUG, IOUG and Quest and attracted over 5000 attendees this year. The conference included hundreds of sessions covering Oracle Applications, Database, and Middleware which were delivered by Oracle customers, partners and staff members. The EPM/BI/Data Warehousing track itself had over 130 sessions, most of which were delivered by customers and partners, and which were very-well attended. Conference attendees and members of the Oracle user groups can see the session list and gain access to the presentation content at this link: http://collaborate.oaug.org/education/search. One of the highlights of the conference was the RadiOAUG live radio show that was broadcast from the exhibit hall during the conference. This was pretty interesting – as two professional radio broadcasters interviewed Oracle executives, customers and partners on a variety of topics that were in focus for the conference. I was interviewed on the topic of “ERP and EPM – Better Together”. During this short interview I talked about the progress Oracle has made in integrating the Hyperion EPM Applications with Oracle E-Business Suite, PeopleSoft, JD Edwards, Fusion and SAP Financials. I highlighted 3 specific areas of integration that Oracle has built out -- data, metadata, and process integration. We also discussed how EPM can help with ERP upgrades, through managing metadata like the Chart of Accounts, and providing a consistent planning and reporting environment while the systems are being upgraded on the back end. I finished by talking about the role our EPM applications can play in helping ERP customers extend their investments and improve their management processes such as Strategy Management, Planning and Forecasting, Financial Close and Reporting as well as Profitability and Cost Management. Here’s a link to a replay of my RadiOAUG interview: JohnO'Rourke.mp3.

A note from John O'Rourke, Vice President, Product Marketing. I recently had the pleasure to attend and present at the Collaborate 2013 user conference in Denver, Colorado. This event is run by three ofth...

Everyone Does Not Speak English - Fusion Financials Addresses Global Markets

A word from Joe Gum, Senior Director, Fusion Financials Product Strategy  Imagine trying to purchase a new phone, pay your bills, or book a cruise online if the software isn’t in a language you speak? As sophisticated users of the internet, we see a distinct increase in the number of multilingual users, as well as in the amount of Web content. E-commerce is growing in importance for the international market that lies at our fingertips. Business owners can decide to ignore these issues and keep their businesses small and regional. Global companies don’t have that luxury, nor would they want to. These companies need enterprise grade software that can be used around the world. The software needs to have the flexibility to adapt to various languages and local business practices while complying with local regulations. We designed Fusion Applications from the ground up with the global customer in mind. The suite includes essential internationalization functionality, translation and multilingual support, and localization features. For example, Fusion Applications supports multiple date formats, number formats, names, addresses, phone numbers, and currency symbols. It also supports unlimited accounting representations and statutory reporting needs—all on a single global instance using standard preferences and setup. This allows global customers to adapt their software for a specific region or language without requiring multiple installations of the product and without engineering changes or customizations. No one should have to settle for less. Why select a Cloud service vendor who is halfway there when you can select one who can meet all your global and multinational needs? And, with the ongoing addition of new language support with every release, Fusion applications soon will support the world’s 22 most popular languages. We also provide localizations in Fusion Applications. These are country specific extensions to meet local business requirements. China, for example, is a country with many different local and legal requirements. The Fusion payroll solution has extensions for China, as well as for Saudi Arabia, United Arab Emirates, United Kingdom, and United States. For Financials, localizations also exist for China, plus United States, Singapore, France, and the European Union. Even without country specific features, Fusion can be configured to support many local requirements, such as payroll and transaction taxes. You can depend on Fusion Applications to be easy and straightforward to operate in multiple countries. We designed it to help global companies be successful in expanding to new markets and locales. These localization efforts support general business functionality across all areas of the business process, such as financial management, supply chain management, human resources, etc. with country-specific tax and statutory updates. Fusion Financials Cloud Service information.

A word from Joe Gum, Senior Director, Fusion Financials Product Strategy  Imagine trying to purchase a new phone, pay your bills, or book a cruise online if the software isn’t in a language you...

Oracle Advanced Controls Uptakes W3C PROV Standard

Oracle product development is excited to announce that it has implemented the W3C Provenance (PROV) standard in the 8.6.4 release of Oracle Advanced Controls for E-Business Suite and Advanced Controls for PeopleSoft. This is a significant achievement for Oracle to implement this standard and demonstrates Oracle’s leadership position in the technology industry.   This announcement is important because it allows Oracle’s partners and customers to quickly and easily integrate and connect their advanced control solutions with heterogeneous ERP systems.  According to Reza B’far, Oracle Senior Development Director, "Oracle has implemented various parts of the W3C Provenance standard to continue to enhance its support of auditing transaction and configuration controls temporally over heterogeneous environments.  W3C's Provenance standard has been implemented as a part of standard RESTful web services that the Oracle GRC Control Suite provides to its customers for integration." There have been many substantial academic, government, and commercial organizations involved in the creation of the standard including University of Southern California (USC), Oracle USA, NASA, University of Oxford, University of Manchester, Rensselaer Polytechnic Institute, University of Southampton, Newcastle University, and others. The W3C Provenance effort started with an incubator in 2009 and has continued to date, resulting in finalization of the first version of the standard in 2013. You can follow the W3C Provenance Incubator Group on Twitter.

Oracle product development is excited to announce that it has implemented the W3C Provenance (PROV) standard in the 8.6.4 release of Oracle Advanced Controls for E-Business Suite and Advanced Controls...

PeopleSoft 9.2 is Here!! New Features. More Functions. Lower TCO.

Oracle's commitment to PeopleSoft continues. Building off a proven 25-year history of best-in-class solutions, PeopleSoft 9.2 delivers revolutionary innovation by creating an improved user experience that fundamentally changes how users interact with PeopleSoft. In addition to over 1,000 new features and enhancements that make it a robust solution and lowers the total cost of ownership, PeopleSoft 9.2 takes the user experience to the next level—with a more intuitive, easy-to-use interface that incorporates the consumer internet experience. Don't Get Left Behind 65% of PeopleSoft customers are using PeopleSoft 9.1. Protect your PeopleSoft investment—start your upgrade today. A Whole New User Experience PeopleSoft 9.2 users navigate effortlessly with a global, free text search and have the ability to act directly on the search results. Information is presented in the most visual manner possible, making it easy for casual users to navigate and work faster. Out-of-the-box WorkCenters help high frequency users dramatically boost productivity by consolidating user tasks, exceptions, alerts, links, reports, and queries into a single, secure, role-based, cockpit-style “command center” that can be personalized. Watch: Join our live What's New with PeopleSoft 9.2 webcast Read: Oracle Releases Oracle's PeopleSoft 9.2 Listen: What's New in PeopleSoft 9.2 podcast Over 1,000 Enhancements In addition to an innovative new user experience, PeopleSoft 9.2 delivers comprehensive business and industry solutions designed to address the most intricate requirements in HR, financials, and supply chain management, including: New mobile capabilities for requisitioning, inventory, and company directories Smart HR template-based transactions Mass GL Journal approval Did You Know? Launch the infographics Reducing the Cost to Stay Current PeopleSoft 9.2 transforms the maintenance process. PeopleSoft Update Manager helps minimize costs and disruptions associated with applying maintenance and maximize the impact of desired updates. With it, customers can: Tailor the scope of maintenance to meet specific needs Apply maintenance on their schedules Get current regardless of prior maintenance levels Invest in Innovation: Upgrade to PeopleSoft 9.2 Oracle is continuing to invest in PeopleSoft applications and technology to deliver value to PeopleSoft customers around the world. Don’t get left behind. Protect your PeopleSoft investment. View: Learn why you should upgrade to PeopleSoft 9.2.

Oracle's commitment to PeopleSoft continues. Building off a proven 25-year history of best-in-class solutions, PeopleSoft 9.2 delivers revolutionary innovation by creating an improved user experience...

Best Kept Secret How to Improve Your Organization’s Bottom Line

If your organization is like most, you have devoted enormous resources to optimizing business processes. From utilizing shared service centers, to automating workflow approvals, no doubt your processes are in great shape.   Less understood but even more problematic is process activities that negatively impact your organization’s bottom line. Affectionately referred to as financial or cash leakage, organizations are starting to realize that they are losing literally millions of dollars each year to cash leakage.   Financial leakage comes in three basic forms: 1) activities that directly impact the bottom line, 2) activities that indirectly the bottom line, and 3) activities that negatively impact cash flow and that impact on the bottom line.   Fortunately the word is getting out that Oracle’s GRC advanced control solutions are helping organizations of all sizes to dramatically reduce financial leakage. For example, duplicate vendor invoices are a major problem that directly impacts the bottom line. Advanced controls continuously monitor both supplier records and supplier invoices for potential duplicates, then alerts management about questionable invoices.   In future blog postings we plan to share intriguing ways that organizations are using their advanced control solutions to reduce financial leakage and improve their bottom line. In the meantime, we encourage you to provide comments with any use cases with your business peers.

If your organization is like most, you have devoted enormous resources to optimizing business processes. From utilizing shared service centers, to automating workflow approvals, no doubt your...

FASB and IASB Set Effective Date for New Revenue Recognition Standard: January 1, 2017

An update from our resident IFRS expert, Seamus.....The FASB and IASB met onFebruary 20th and put the finishing touches to the new US GAAP andIFRS Revenue recognition principle, Revenue from Contracts withCustomers.  As they say on their websites, all that remains isfor the staff to begin drafting the final standard.  They decided on the effectivedate of the standard for new transactions: January 1, 2017.  Both the FASB and the IASB arein agreement that early adoption will not be permitted. There are now three arrangementsorganizations can use during the transitional period, between now and 2017: 1)  Retrospective reporting, where each revenuetransaction is tracked under both the old and the new in full 2)  Retrospective reporting exploiting the permitted optionalpractical expedients previously published3)  Apply the standard to new post January 2017 initialrevenue items, recognize the impact of the change as an adjustment to opening 2017 balance, and disclose the changes It will be interesting to seehow these options are explored by practitioners and professionals.  They have substantially updatedthe disclosure requirements, introducing some qualitative elements, eliminatingthe onerous obligation disclosure, and adding some assumptions and methodsdisclosure.

An update from our resident IFRS expert, Seamus.....The FASB and IASB met on February 20th and put the finishing touches to the new US GAAP and IFRS Revenue recognition principle, Revenue from...

Reap Significant Cost Savings during ERP Projects with Oracle’s GRC Advanced Controls

Are you planning an ERP upgrade in the near future? Or is your organization about to embark on an ERP implementation? In either case, did you know that Oracle’s GRC advanced financial controls can play a vital role in the success of your project? Whether your goals are to accelerate project activities, or achieve lasting benefits after the project is completed, advanced financial controls will improve your organization’s bottom line.  But don’t take my word for it. Instead, read the Optimizing E-Business ERP projects with GRC’s advanced financial controls white paper and then ask yourself whether it is worth the risk to not use GRC’s advanced financial controls. Our esteemed colleagues at PwC wrote this white paper and provide great insight into the many challenges that confront organizations during ERP projects. They also highlight some compelling case studies such as how one company leveraged GRC’s advanced financial controls to achieve an estimated 20-percent cost savings by accelerating their configurations during an Oracle upgrade. Click here to access the white paper.  If you know about one of the successful organizations that have leveraged Oracle GRC’s advanced financial controls during an ERP project, please share your success story with the Oracle community by posting your comments to this blog.

Are you planning an ERP upgrade in the near future? Or is your organization about to embark on an ERP implementation? In either case, did you know that Oracle’s GRC advanced financial controls can...

Moving Your Finance Operations to the Cloud – Join us at CloudWorld to Discover Why and How

Under pressure to changeyour financial business processes and not sure where to start? Is your enterprise resource planning (ERP)delivering on its promise to streamline core business processes or are yousaddled with lengthy upgrades, legacy customizations, and complex integrations? You might be wondering whether cloudtechnology is a viable option – is it able to handle your security requirementsfor your financial data, your business complexities, and your specific needsfor cost reduction. Is it really ready? Yes, it is… Oracle cloudoffers a broad portfolio of software as a service applications, platform as aservice, and social capabilities, all on a subscription basis. It deliversinstant value and productivity for finance professionals through functionallyrich, integrated, enterprise cloud services. With Oracle Cloud, youget enterprise-grade application services based on best-in-class businessapplications. Did you know that morethan 25 million users rely on Oracle Cloud every day!! Learn about the world’smost complete cloud for the enterprise at Oracle CloudWorld and in ONE DAY findout how Oracle can transform your organization! Don’t miss out, register forthis FREE event today! 

Under pressure to change your financial business processes and not sure where to start? Is your enterprise resource planning (ERP)delivering on its promise to streamline core business processes or are...

Join our London Seminar - Improving Business Performance with Advanced Controls

Come join Oracle, Smiths Medical, and PWC at this exclusive financial executive briefing.What if you lost a tenth of a percent of your vendor spend to cash leakage?It may not sound like much at first, but the losses quickly add up. Consider a firm that spends £1 billion and has a 5 percent profit margin. It would take an additional £20 million in incremental sales to recover cash lost due to leakage every year.But what can you do? If you’re like most organisations, you’re already devoting too much time to manual tasks such as reviewing vendor invoices for errors, checking user access, and detecting unauthorised changes. Oracle recognises that this remaining element of manual controls presents an untapped opportunity for your organisation.There’s a better way. Oracle offers advanced financial controls to help you: Reduce cash leakage by automatically detecting duplicate vendor invoices Improve working capital with insight into sales invoice exceptions and customer account write-offs Ensure financial reporting accuracy by delivering consistent data to the consolidations process Hear first-hand from Steve Ogilvie, Director, Governance and Security the benefits achieved by Smiths Medical from implementing Oracle’s GRC technology.This is a must-attend event for finance executives who are ready to learn how they can increase the efficiency and effectiveness of their process controls. And if you are considering an ERP systems upgrade, this is an even more opportune time to learn how advanced financial controls can improve your bottom line. Date:Tuesday, November 27, 2012Time:8:00 a.m. PST / 11:00 a.m. EST Register now.

Come join Oracle, Smiths Medical, and PWC at this exclusive financial executive briefing. What if you lost a tenth of a percent of your vendor spend to cash leakage?It may not sound like much at...

ERP in the Cloud: CFOs See the Value

Still working on your new year's resolution? If you are a CFO, you might be thinking about finalizing the approach you’ll use to move your confidential finance and operations functions to the cloud. On the other hand, you might be unsure about whether you and your company are ready to take that leap of faith into the new technology. You might be wondering whether the cloud technology is able to handle your security requirements, your access rules, your business complexities, and your specific needs for cost reduction. Is it really ready? Well, Steve Miranda, EVP, Oracle Applications Development, has an opinion to share with you. In its 2013 Looking Forward issue, Financial Executive magazine covers an article by Steve entitled “ERP in the Cloud: CFOs See the Value of Running Enterprise Applications as a Service.”  In this piece, Steve states: “The fact that traditionally risk-averse CFOs are open to moving their mission-critical ERP systems into the cloud should be a clear indication to all companies that ERP cloud services are fast becoming the go-to strategy for finance executives looking to access the latest technologies quickly and cost-effectively to support their corporate objectives.” In the article, Steve talks about Oracle ERP customers, such as Carrie Dolan, Chief Financial Officer of Lending Club and Dan Knutson, Chief Financial Officer of Land O’ Lakes, making cloud and managed cloud choices.   Read more of Steve’s opinion and Oracle customers’ perspective here. . Steve Miranda, EVP, Oracle Applications Development

Still working on your new year's resolution? If you are a CFO, you might be thinking about finalizing the approach you’ll use to move your confidentialfinance and operations functions to the cloud. On...

Accelerate Policy Compliance Without Slowing Down Your Business!

I had aninteresting chat with one of our Oracle partners the other day because he toldme about some of the novel and creative ways Oracle customers are using theiradvanced financial control solutions. In particular, how companies are usingadvanced financial controls to ensure their business processes are complyingwith corporate policies. This raised anintriguing question whether the lack of policy compliance is a serious problem or not.I then spoke with one of my colleagues on our sales team and learned that all toooften their prospective customers have significant challenges in this area. One problem is that as policy compliance gaps increase, companies have to divert moreresources from running the business to enforcing policies through such manualcontrols as developing and reviewing reports. Thankfullyadvanced financial controls in Oracle GRC can help enforce corporate policies,without slowing down businesses. By continuously monitoring configurations andtransactions for exceptions and anomalies, advanced financial controls cansignificantly close the policy compliance gap. If you have anyexamples how you are using your advanced control solutions to close the policycompliance gap, please share them with our community. Or if you have currentbusiness challenges in this area and would like to learn more about how Oraclecan help, post your comments and I will respond with my thoughts. Also, here are a couple of new documents you might findinteresting and that are available on Oracle.com: · Solution Brief: OracleAdvanced Financial Controls · White Paper: Optimizethe Procure-to-Pay process with Advanced Financial Controls

I had an interesting chat with one of our Oracle partners the other day because he told me about some of the novel and creative ways Oracle customers are using theiradvanced financial control...

Oracle E-Business Suite is Helping to Save Lives at the National Marrow Donor Program

To improve the management of its life-saving operations, the National Marrow Donor Program recently modernized its financial and procurement operations by upgrading to Oracle E-Business Suite 12.1.   As the global leader in bone marrow and umbilical cord blood transplants, the NMDP manages a complex ecosystem of donor, patient, hospital, and biological data. “Maintaining accurate data and having an efficient matching process is essential, particularly as our global database of bone marrow patients grows and donor lists expand,” says Bruce Schmaltz, director of finance/controller. “We rely on the Oracle E-Business Suite to ensure our procurement and financial management processes meet the highest standards, enabling our growing non-profit to work swiftly and efficiently to help improve and save lives.” As the non-profit organization and its registry grew larger, NMDP needed a modern platform to store and integrate its financial information and complicated procurement process. It selected Oracle E-Business Suite for its ability to fit seamlessly into NMDP’s enterprise architecture. NMDP initially implemented Oracle E-Business Suite release 12 by leveraging Oracle Business Accelerators, which are rapid implementation tools and templates that help reduce implementation time and costs. With Oracle Financial Management and Oracle Procurement, NMDP has streamlined back-office processes and integrated its procure-to-pay business processes by leveraging industry leading accounts payable, accounts receivable, and general ledger modules. NMDP is currently rolling out Oracle Hyperion Performance Management applications and plans to implement Oracle Order Management and Oracle Advanced Pricing by the end of 2012. Read more details about NMDP’s modernization efforts.  For more updates on Oracle Financial Management Solutions, view our November 2012 Oracle Information InDepth Financial Management newsletter. Subscribe Now. 

To improve the management of its life-saving operations, the National Marrow Donor Program recently modernized its financial and procurement operations by upgrading to Oracle E-Business Suite 12.1.   As...

Oracle Financials In the News

Comingoff of OpenWorld and all the excitement around Oracle’s “Cloud” strategy, wethought we’d share what others had to say recently about Oracle’s financialsolutions in and out of the cloud: InformationManagement, the educated reader’schoice for the latest news, commentary and feature content serving theinformation technology and business community, had an interesting blog postfrom Bill McNee of Saugatuck Technology, entitled, “A Bull Market for FinanceCloud Apps”. In the post, he highlightsOracle as one of the ‘significant players’ in the space… Oracle: As recently announced, Oracle is now aggressivelymarketing its Oracle Fusion Financials Cloud Service to midsize and largeenterprise customers. While we anticipate that this solution set will primarilyappeal to a portion of the existing Oracle customer footprint, rather thantaking share from competitors, it is embedding some strong mobile and socialcapabilities that should help it gain traction. Read the full article - “ABull Market for Finance Cloud Apps” Ventana Research, a leading benchmark research and advisory services firm, made mention toOracle Fusion Financials in a recent blog post. While we all know ‘boring is cool’, it was cool to see Robert Kugel, SVPResearch, discussing Oracle’s Fusion Financials strategy. Here’s some excerpts: “For at least the next five years I believe Oracle has agood strategy, because the transition from the existing Oracle ERP offerings toFusion Financials can be less painful than similar migrations…” “Deploying Fusion GL can facilitate a more consistent andfaster way to execute finance department functions.” “Fusion Financials is the go-forward accounting andfinancial applications suite that will coexist…” “Whether or not it’s time to migrate, I think all users of Oracle’sE-Business Suite, Oracle Applications, PeopleSoft and JD Edwards softwareshould consider Fusion GL as part of an ongoing program to extract more valuefrom their core financial systems.” Read the full article - “OracleFusion Financials: Boring is Cool”

Coming off of OpenWorld and all the excitement around Oracle’s “Cloud” strategy, we thought we’d share what others had to say recently about Oracle’s financial solutions in and out of the cloud: Informa...

Lending Club Selects Oracle ERP Cloud Service

AnotherOracle ERP Cloud Service customer turning to Oracle to help increaseefficiencies and lower costs!! Lending Club, theleading platform for investing in and obtaining personal loans, has selectedOracle Fusion Financials to help improve decision-making and workflow,implement robust reporting, and take advantage of the scalability and costsavings provided by the cloud. After an extensive search, LendingClub selected Oracle due to the breadth and depth of capabilities and ongoinginnovation of OracleERP Cloud Service. Since their onlinelending platform is internally developed, they chose Oracle Fusion Financialsin the cloud to easily integrate with current systems, keep IT resourcesfocused on the organization’s own platform, and reap the benefits of loweredcosts in the cloud. The automation,communication and collaboration features in Oracle ERP Cloud Service will helpLending Club achieve their efficiency goals through better workflow, as well asprovide greater control over financial data. Lending Club is also implementingrobust analytics and reporting to improve decision-making through embeddedbusiness intelligence. “Oracle Fusion Financials is clearly theindustry leader, setting an entirely new level of insight and efficiencies forLending Club,” said Carrie Dolan, CFO, Lending Club. “We are not onlyincredibly impressed with the best-of-breed capabilities and business valuefrom our adoption of Oracle Fusion Financials, but also the commitment fromOracle to its partners, customers, and the ongoing promise of innovation tocome.” Resources: Oracle ERP Cloud Service Video Oracle ERP Cloud Service Executive Strategy Brief Oracle Fusion Financials Quick Tour of Oracle Fusion Financials If you haven't heard about Oracle ERP Cloud Service, check it out today!

Another Oracle ERP Cloud Service customer turning to Oracle to help increase efficiencies and lower costs!! Lending Club, theleading platform for investing in and obtaining personal loans,...

Oracle OpenWorld Recap - A Walk in the Clouds (and heat in San Francisco)!

Whether you were one of the 50,000 attendees in San Francisco or one of the million+ online attendees – we’d like to thank you for joining us at Oracle OpenWorld last week! With temperatures in the 80s and 90s, attendees traveled the overheated streets to join packed keynotes and general sessions – all to find the information they came in search of – Oracle solutions to address their business requirements and challenges. The buzz of this year’s OpenWorld was all about ‘The Cloud’. And, the financial management team joined in the cloud buzz with Thomas Kurian’s keynote which highlighted our ERP Cloud Service as the most complete cloud service on the market. Offering the full breadth of business operations, including Financial Management, Risk and Control Management, Project Portfolio Management, Procurement, Sourcing, and Inventory Management, Oracle ERP Cloud Service transforms the back office into a collaborative, efficient, and intuitive hub. And, our product marketing expert on Financial Management, Annette Melatti, provided a glimpse of what the office of finance looks like in the 21st century as well as shared what’s next for Oracle’s financial solutions discussing the future of Financial Management with Fusion Financials, E-Business Suite, PeopleSoft and the JD Edwards solutions. There were over 120 sessions from customers, partners, and Oracle experts that addressed financial management solutions along with demo pods and Meet the Experts sessions. We hope you found what you were looking for! Missed any of the keynotes or general sessions? Watch them on demand here. At OpenWorld, we also announced that Lending Club, the leading platform for investing in and obtaining personal loans, has selected Oracle ERP Cloud Service to help improve decision-making, implement robust reporting, and take advantage of the cost savings provided by the cloud. The CFO of Lending Club, Carrie Dolan had mentioned that they “are an innovative, data-intensive, high-growth company and needed a solution and partner that could match us. We conducted a thorough review of our options, and Oracle ERP Cloud Service was the clear winner in terms of capabilities and business value as well as commitment to us as a customer.” Read the entire release here. For now, it’s back to business as we gear up for the second half of our fiscal year and start planning for Oracle OpenWorld 2013!

Whether you were one of the 50,000 attendees in San Francisco or one of the million+ online attendees – we’d like to thank you for joining us at Oracle OpenWorld last week! With temperatures in...

Oracle OpenWorld - 3 Days and Counting!

If you haven’t set your schedule for OpenWorld yet, here’s your chance to reserve a seat at some of the key Financial Management sessions. There’s over 120 sessions specific to our Financials audience that will not only focus on Oracle’s financial product lines, but will also discuss controls and compliance, as well as analytics, budgeting/planning, and financial reporting and the close process. For a complete list of sessions, view any of the Focus on Documents located on the OpenWorld site.Key Sessions: DayTime Session LocationMonday3:15Oracle Fusion Financials: Overview, Strategy, Customer Experiences, and RoadmapMoscone West - 2003Monday3:15Oracle Financials: Strategy, Update, and RoadmapMoscone West - 3006Tuesday 11:45 General Session: What’s Next for Financial Management Solutions at Oracle?Moscone West - 3002/3004Tuesday1:15Exploring Oracle Preventive Controls Governor’s Features Through Real-Life ExamplesPalace Hotel - PresidioWeds 10:15Oracle Hyperion Enterprise Performance Management: A Bridge to Oracle Fusion FinancialsPalace Hotel - ConcertWeds 1:15 Oracle Fusion Financials Coexistence with Oracle E-Business SuiteMoscone West - 2011Weds3:30 McDonald’s Adopts Financial Analytics to Increase Business PerformanceMoscone West - 2011Thursday 12:45 User Panel: Reducing Upgrade Errors and Effort While Improving Compliance Palace HotelPalace Hotel - Presidio

If you haven’t set your schedule for OpenWorld yet, here’s your chance to reserve a seat at some of the key Financial Management sessions. There’s over 120 sessions specific to our Financials audience...

The 2012 Gartner-FEI CFO Technology Survey -- Reviewed by Jeff Henley, Oracle Chairman

Jeff Henley and Oracle Business Analytics VP Rich Clayton break down the findings of the 2012 Gartner-FEI CFO Technology Survey.  The survey produced by Gartner gathers CFOs perceptions about technology, trends and planned improvements to operations.  Financial executives and IT professionals can use these findings to align spending and organizational priorities and understand how technology should support corporate performance.   Listen to the webcast with Jeff Henley and Rich Clayton - Watch Now » Download the full report for all the details -   Read the Report »        Key Findings ·        Despite slow economic growth, CFOs expect conservative, steady IT spending. ·        The CFOs role in IT investment has increased again in 2012. ·        The 45% of IT leaders that report to the CFO are more than report to any other executive, and represent an increase of 3%. ·        Business analytics needs technology improvement. ·        CFOs are focused on business analytics and business applications more than on technology. ·        Information, social, cloud and mobile technology trends are on CFOs' radar. ·        Focusing on corporate performance management (CPM) projects, 63% of CFOs plan to upgrade business intelligence (BI), analytics and performance management in 2012. ·        Despite advancements in strategy management technologies, CFOs still focus on lagging key performance indicators (KPIs) only. ·        A pace-layered strategy for applications is needed (92% of CFOs believe IT doesn't provide transformation/differentiation). ·        New applications in financial governance rank high on improving compliance and efficiency.

Jeff Henley and Oracle Business Analytics VP Rich Clayton break down the findings of the 2012 Gartner-FEI CFO Technology Survey.  The survey produced by Gartner gathers CFOs perceptions about...

2013 U.S. GAAP Financial Reporting Taxonomy Available for Public Review and Comment

FASB recently released the proposed 2013 U.S. GAAP Reporting Taxonomy. Comments are due October 29, 2012 to be finalized and published early 2013.  The proposed 2013 U.S. GAAP taxonomy and instructions on how to submit comments are available at the FASB’s XBRL page. In previous blog entries, I talked about how Oracle Hyperion Disclosure Management supports the latest taxonomy, enabling financial managers to easily comply with the latest filing requirements. The taxonomy is a list of computer-readable tags in XBRL that allows companies to annotate the voluminous financial data that is included in typical long-form financial statements and related footnote disclosures. The tags allow computers to automatically search for, assemble, and process data so it can be readily accessed and analyzed by investors, analysts, journalists, and regulators. You do not have to have Oracle Hyperion Financial Management, used for consolidating financial results, to generate XBRL. You just need Oracle Hyperion Disclosure Management to generate XBRL instance documents from financial applications, such as Oracle E-Business Suite, Oracle PeopleSoft, Oracle JD Edwards EnterpriseOne, and Oracle Fusion General Ledger. To generate XBRL tags and complete SEC filings using your existing financial applications with Oracle Hyperion Disclosure Management, here are the steps: Download the XBRL taxonomy from the SEC or XBRL Website into Hyperion Disclosure Management to create a company taxonomy. Publish financial statements from the general ledger to Microsoft Excel or Microsoft Word. Create the SEC filing in the Microsoft programs and perform the XBRL tag mapping in Oracle Hyperion Disclosure Management. Ensure that the SEC filing meets XBRL and SEC EDGAR Filer Manual validation requirements. Validate and submit the company taxonomy and XBRL instance document to the SEC. Get more details about Oracle Hyperion Disclosure Management.

FASB recently released the proposed 2013 U.S. GAAP Reporting Taxonomy. Comments are due October 29, 2012 to be finalized and published early 2013.  The proposed 2013 U.S. GAAP taxonomy and instructions...

Drinking Our Own Champagne: Fusion Accounting Hub at Oracle

A guest post by Corey West, Senior Vice President, Oracle's Corporate Controller and Chief Accounting OfficerThere's no better story to tell than one about Oracle using its own products with blowout success. Here's how this one goes.As you know, Oracle has increased its share of the software market through a number of high-profile acquisitions. Legally combining companies is a very complicated process -- it can take months to complete, especially for the acquisitions with offices in several countries, each with its own unique laws and regulations. It's a mission critical and time sensitive process to roll an acquired company's legacy systems (running vital operations, such as accounts receivable and general ledger (GL)) into the existing systems at Oracle.To date, we've run our primary financial ledgers in E-Business Suite R12 -- and we've successfully met the requirements of the business and closed the books on time every single quarter. But there's always room for improvement and that comes in the form of Fusion Applications. We are now live on Fusion Accounting Hub (FAH), which is the first critical step in moving to a full Fusion Financials instance.We started with FAH so that we could design a global chart of accounts. Eventually, every transaction in every country will originate from this global chart of accounts -- it becomes the structure for managing our business more uniformly. In conjunction, we're using Oracle Hyperion Data Relationship Management (DRM) to centralize and automate governance of our global chart of accounts and related hierarchies, which will help us lower our costs and greatly reduce risk.Each month, we have to consolidate data from our primary general ledgers. We have been able to simplify this process considerably using FAH. We can now submit our primary ledgers running in E-Business Suite (EBS) R12 directly to FAH, eliminating the need for more than 90 redundant consolidation ledgers. Also we can submit incrementally, so if we need to book an adjustment in a primary ledger after close, we can do so without re-opening it and re-submitting. As a result, we have earlier visibility to period-end actuals during the close.A goal of this implementation, and one that we successfully achieved, is that we are able to use FAH globally with no customization. This means we have the ability to fully deploy ledger sets at the consolidation level, plus we can use standard functionality for currency translation and mass allocations. We're able to use account monitoring and drill down functionality from the consolidation level all the way through to EBS primary ledgers and sub-ledgers, which allows someone to click through a transaction appearing at the consolidation level clear through to its original source, a significant productivity enhancement when doing research. We also see a significant improvement in reporting using Essbase cube and Hyperion Smart View. Specifically, "the addition of an Essbase cube on top of the GL gives us tremendous versatility to automate and speed our elimination process," says Claire Sebti, Senior Director of Corporate Accounting at Oracle.A highlight of this story is that FAH is running in a co-existence environment. Our plan is to move to Fusion Financials in steps, starting with FAH. Next, our Oracle Financial Services Software subsidiary will move to a full Fusion Financials instance. Then we'll replace our EBS instance with Fusion Financials. This approach allows us to plan in steps, learn as we go, and not overwhelm our teams. It also reduces the risk that comes with moving the entire instance at once. Maria Smith, Vice President of Global Controller Operations, is confident about how they've positioned themselves to uptake more Fusion functionality and is eager to "continue to drive additional efficiency and cost savings."In this story, the happy customers are Oracle controllers, financial analysts, accounting specialists, and our management team that get earlier access to more flexible reporting. "Fusion Accounting Hub simplifies our processes and gives us more transparency into account activity," raves Alex SanJuan, Senior Director, Record to Report Strategic Process Owner. Overall, the team has been very impressed with the usability and functionality of FAH and are pleased with the quantifiable improvements. Claire Sebti states, "Our WD5 close activities have been reduced by at least four hours of system processing time, just for the consolidation group."Fusion Accounting Hub is an inspiring beginning to our Fusion Financials implementation story. There's no doubt it's going to be an international bestseller!Corey West, Senior Vice PresidentOracle's Corporate Controller and Chief Accounting Officer

A guest post by Corey West, Senior Vice President, Oracle's Corporate Controller and Chief Accounting Officer There's no better story to tell than one about Oracle using its own products with blowout...

What’s Next from the Standard Setters?

I met up with Seamus Moran, ourresident accounting expert, to get an update on the things we can expect tocome down the pike in the ever changing world of standard settings. Several things have derailed recently; the SEC has been dithering; their staffis negative on the adoption of IFRS, and FASB made a decision to proceed withasset impairment differently than IASB. However, we’ve still got two of thebiggest accounting changes coming full steam for arrival next year: RevenueRecognition and Lease Accounting. Revenue Recognition replaces the notion of deferred revenue liability – sales invoices you can’t book to the P&L until contingencies are lifted – with performance obligation liabilities – the items you owe to customers valued at estimated selling prices.  It also replaces the notion of revenue as items billed without any contingencies with the notion of revenue as items for which you have satisfied your customers valued at what you are entitled to receive.  It’s difficult to fathom the implications of these definition changes in terms of bookkeeping, process, and substantiation.  For some, it may not be a major difference, for most, it will be difficult. Revenuewill be finalized in the spring of 2013.  The changes will hopefullysimplify the most recent Exposure Drafts in the area of transition reporting,disclosure, and the cell phone example.  But the new standard will impactall US registrants under US GAAP.  And it impacts all non-US registrantsunder IFRS. Lease Accounting abolishes operating leases and adjusts the math and the way in which leases are expensed.  Real Estate professionals are already anxious about the change, anticipating the complexity it brings to landlords, developers and tenants.  Equipment renters, although not nearly as tuned-in, will also be highly impacted. It will affect equipment rentals from jet aircraft through photocopiers, panel vans, etc. that are currently treated as operational leases but will soon be accounted as capital leases--complete with the right of use assets and complex liabilities, hitting the P&L in a new way with amortization expense above the line and interest expense below.  LeaseAccounting is slated to be finalized in the fall of 2013.  A new exposuredraft (ED) will be published this winter with a 120 day review and commentperiod. This ED is expected to meet the General Acceptance criteria with changesimpacting all US registrants under US GAAP and non-US registrants under IFRS. When will the Revenue Recognition and Lease Accounting Changes be Effective? It is difficult to say. Originally, the Boards had announced that the standards would not beeffective before June 2015. Although they have not publicly revised thedate, practically speaking, that date can no longer be achieved. It is important that the SEC, FASB,IASB, and registrants and users have time to gather, aggregate and report thenecessary data. Software vendors, such as Oracle, need appropriate time todiscuss the changes with their customers across various industries, along withthe Big 4. And then software vendors need time to design and revise their software, and customersneed to implement the changes to their accounting software. The SEC, FASBand IASB are aware of this, and they have discussed it with vendors in the softwareindustry; they intend to reflect the industry’s input in their scheduling. Currently,it is anticipated that the standards will be effective for new transactions in2016 and/or 2017.  As usual, both standards will require reporting ofthe several years prior to the effective date under the new standard, althoughcompanies will have already reported it under the old standard.  Detailsof this requirement are among the issues being re-deliberated and are notfinalized. Financial Reporting of the BankingIndustry The Boards are also working on howbest to report the activities and status of banks.  These issues arecomplicated by the fact that the FASB & IASB are concerned with how Banksreport to their owners (the stock holders) while bank regulators are concernedwith evaluating safety in terms of both the economy and the individualdepositor.  With the many recent crisis’, apparently safe bankers’ assets(financial instruments), such as national debt (government bonds) or securedreal estate loans (mortgages) have in fact turned out to be not so safe. Thestandard bankers’ interest margin is measured in part-percentage points, anddefining a financial report that accurately defines a bank’s equity is provingdifficult.  This difficulty is compounded by the fact that the bankingregulators in different countries have very different philosophies about whatis safe and for whom that matters, and the philosophy within a country variesdepending on the elected government. Our Plates Are Full So I think our hands are full with US GAAP and IFRS at the system level, theaccounting level, and at the regulators level.  We don’t need to bedealing with asset componentization this year, next year or the year after:changes to Lease Accounting and Revenue Recognition will be plenty, thank you. After all of us around the worldadopt the changes to Lease Accounting and Revenue Recognition, we’ll be in abetter position to work with whatever the SEC decides is an appropriate timeand way for the US to join the rest of the world in adopting IFRS.  Thismeans establishing what is truly “Generally Accepted” in both the US andnon-US countries.  The SEC staff has proposed a process of “condorsement,”where the FASB would publish IFRS standards as Exposure Drafts of AccountingStandard Updates to the FASB codification.  Other countries have alreadyadopted IFRS using this path, although none had as dense a statement of theirexisting GAAP as the US does.  Such a process will also expose the IASB toaddressing issues addressed under existing US GAAP that are not addressed underIFRS. The SEC have not endorsed nor adopted this proposal; we must wait tosee what their considerations might reveal. In a nut shell, we have our hands fulldealing with changes to Lease Accounting, Revenue Recognition, as well as theissues with the financial houses.  We have an unequal system of enforcingcompliance, and we don’t have a way to ensure uniform interpretation.  Forthe time being, our plates are full, so not having a definitive date as to whenthe US will adopt IFRS or how asset impairment will be dealt with is not a bigdeal. We can wait and not try to bite off more than we can chew.

I met up with Seamus Moran, our resident accounting expert, to get an update on the things we can expect to come down the pike in the ever changing world of standard settings. Several things have...

Financial Management in the Cloud: Is It Right for Your Business?

A guest post by Terrance Wampler, Vice President, Financials Product Strategy, OracleIn a previous post, we explored the pros and cons of SaaS as compared to the traditional software delivery model. Now, here are some proof points to help you make the decision about moving to the cloud. Start by asking your IT department what they’ve done with cloud services. What worked, and, more importantly, what didn't work? If there was a problem, was it about service levels? Cost negotiation? Or was the provider not good? What they learned can help the success of future projects.The second thing to consider is your governance model around acquisitions. Will you have to change your policies and your governance of IT procurement if you move to the cloud? Do you have to bring in other players besides IT, maybe a line of business, or is the governance model actually in the acquisition? Is there already a service provider you can leverage?Here’s a piece that customers don't always think about: Do you have a company asset that you might be able to monetize with cloud services? Not only are you looking at how you acquire cloud services, but you might see cloud services as an opportunity to monetize some intellectual property that you have. You can work with the cloud services provider to make that available and give yourself a better negotiation edge and partnership.Who will be measuring and monitoring your service level agreements? Do you need a revised process? Different technology? Will another organization do it? How will the results be communicated? How do you audit the process? A cloud service supplier needs to do more than say his service level is great ─ he needs to prove it to you.Interestingly, the one question that most people tend to save to the end is: Does the product functionally do what I need it to do? Does it actually have good feature sets? It sounds obvious, but we see people missing that one.When it comes to Fusion Applications, everyone knows that it can be deployed on premise, on demand, and in the cloud — whatever way you want it. The SaaS solution also can be part of a co-existence scenario. You can keep your on premise software, and then over time, move select components to a SaaS model.As a cloud service provider, Oracle is very well known in the industry. We've been doing this for many years. We have large data centers running our services. We are very good about meeting our service level agreements and have excellent service renewal contracts for our SaaS business. Plus, the financial component of Fusion is a fully functional solution with all the capabilities you would expect it to have and competes well against the biggest ERPs.At the end of the day, I believe that your evaluation of total cost of ownership is primarily an internal one. We’ve taken the need for comparing different products out of the mix. So think Fusion Applications when you have a strong business case for moving to the cloud.Related Article: Five Ideas: Finance - What CFOs need to know about cloud and other technology solutions

A guest post by Terrance Wampler, Vice President, Financials Product Strategy, Oracle In a previous post, we explored the pros and cons of SaaS as compared to the traditional software delivery model....

What CFOs Should Know About the Cloud

Some enterprise finance functions have been slower to adopt cloud-based computing than other business functions. Is this caution justified?  The cloud is now firmly established in our business vocabulary, yet its appeal is not universal. In broad terms, the finance function has been slower to adopt cloud-based processing than other business functions. But is this unwillingness to take the plunge—or, in some cases, even to dip a toe in the water—fully justified? Recent research indicates that as the cloud market begins to mature, the primary motive for a move to the cloud is no longer cost (as it was in the early days), but rather the potential for process improvement, often triggered by an impending upgrade or withdrawal of support for a legacy system. However, there is no denying that the transition is challenging as organizations seek to integrate processes that straddle the cloud and on-premise worlds. So CFOs were probably right to be cautious about the cloud, but now that the market is maturing and larger vendors are offering cloud-based applications, the opportunities for enhanced competitiveness, productivity, and organizational responsiveness are likely to become too tempting to resist. Learn more about "What CFOs should know about the Cloud" and other CFO solutions at our C-Central, Information for Executives website. Featured Resources:  CFO Market Watch article:  What CFOs Should Know About the Cloud Partner Perspectives video:  What CFOs Should Know About the Cloud Profit Magazine article: Finance in the Clouds - Five things the CFO needs to know about cloud computing

Some enterprise finance functions have been slower to adopt cloud-based computing than other business functions. Is this caution justified?  The cloud is now firmly established in our business...

Grab a Sneak Peek at the Financial Management Activities at Oracle OpenWorld

Last chance to SAVE with the Early Bird rate -- Register by July 27th. Everyone knows Oracle OpenWorld is the best place to find out what’s happening with Financial Management Solutions, who’s making it happen, and how it can work for you.  With over 120 sessions specific to our Financials audience, it’s your chance to learn how you can leverage Oracle technology to deliver the results expected by stakeholders.  These sessions will not only focus on Oracle’s financial product lines, but also discuss controls and compliance, as well as analytics, budgeting/planning, and financial reporting and the close process – all at one conference! Learn from Oracle Experts, Customers, and Partners Meet and hear from the world’s foremost financial management experts on how to deploy effective finance operations strategies Listen to leading customers describe how they are using Oracle Financial Management Solutions to drive efficiency and manage risk See how our partners have implemented successful financial management solutions to help drive sustainable growth Discover how to leverage Oracle’s complete and integrated Financial Management Solutions to increase shareholder value See Oracle Financial Management Solutions in action at our demo pods Attend one of the many Financial Special Interest Groups to share ideas, discuss challenges, and find solutions Join the General Session on Tuesday, October 2nd at 11:45 am for a sneak peek at “What’s Next for Financials Management Solutions at Oracle”.  Stay tuned for additional information including session IDs, dates, locations and demos.  For now, here’s a sampling of the sessions around Financial Management: Fusion Financials·        CON9424:  Oracle Fusion Financials: Customer Adoption and Experiences·        CON6850:  How to Score an Eagle on a Par 5: PGA Migrates to Oracle Fusion Applications·        CON9445:  Information Excess Versus Information Access       ·        CON8849:  Oracle Fusion ERP Case Study: Global Deployment Strategy at OraclePeopleSoft Financials ·        CON9085:  PeopleSoft eSettlements 9.2 & Electronic Invoicing: Drive Down Operation Costs·        CON9079:  New Work Paradigm: Creating & Using Workcenters in PeopleSoft Financials Release 9.2·        CON9096:  PeopleSoft Financials Enhancement Town Hall: Interactive Discussion of Ideas·        CON9095:  Providing PeopleSoft Customers with the Financial Intelligence Needed to SucceedE-Business Suite·        CON9478:  Experience Procure-to-Pay Transformation with Oracle Payables Release 12.1 ·        CON9485:  Upgrading to Oracle E-Business Suite Financials 12.1: A Technical Perspective·        CON9481:  Oracle Payments: The payment process has been redesigned·        Manage economic challenges and improve cash flow with Financial Analytics for Oracle E-Business SuiteJD Edwards·        CON9125: Showcase on JD Edwards EnterpriseOne Financial SolutionsOther Sessions of interest·        CON9560: Hot Topics in Regulatory Reporting - GAAP, IFRS, Sustainability, Solvency II, XBRL·        CON9372: NEW: Account Reconciliations Module in Oracle Hyperion Financial Close Management·        CON9387: Advances in Continuous Controls Monitoring with Oracle Fusion Governance, Risk, and Compliance·        CON9395: User Panel: Reducing Upgrade Errors and Effort While Improving ComplianceMeet the Experts·        MTE9644:   Meet the PeopleSoft Financials and PeopleSoft Supply Chain Management Applications Experts·        MTE9645:  Meet the Oracle E-Business Suite Financials Experts·        MTE9653:  Meet the Oracle Fusion Financials ExpertsFind out what’s hot—and why. Only at Oracle OpenWorld. Register by July 27th and SAVE with the Early Bird rate.

Last chance to SAVE with the Early Bird rate -- Register by July 27th. Everyone knows Oracle OpenWorld is the best place to find out what’s happening with Financial Management Solutions, who’s making...

Idea of U.S. Companies Adopting IFRS is Over

As I was drinking my triple espresso in the cafeteria and reading yesterday’s article on CFO.com called SEC Staff Pulls Back on Accounting Convergence, I couldn’t believe my eyes. The long-standing issue of converging U.S. GAAP and IFRS was being put on the back-burner, and the FASB wanted to be put in the driver’s seat, instead of IASB. My first thought was surprise; the SEC Staff seemed so negative. I thought the U.S. was moving forward slowly, but surely, on the path to convergence. My second thought was: “I wonder what my buddy Seamus Moran, our resident accounting expert, would say about this?” Then, lo and behold, I look up and see Seamus Moran standing in front of me. Me: “Hi, Seamus, it seems like the SEC is no longer kicking the can down the IFRS road; they’ve shelved it.” Here’s what Seamus had to say: That’s right, Theresa. Last Friday on July 13th the SEC Staff published a report to the SEC Board in which they indicated a reluctance to simply adopt IFRS. In other words, there’s no final decision on whether IFRS should be incorporated into the U.S. financial reporting system and if it were, how it should be implemented. If the Board of the SEC accepts their Staff’s recommendations, it is anticipated that each IAS and IFRS statement will be “exposed” by the FASB for review by the U.S. GAAP community before it chooses to adopt it to become U.S. GAAP. In this way, FASB will be responsible for the quality of the IFRS standards. The SEC may adopt another approach, but they have not signaled any to the financial community.  The IASB are hoping for a more positive response.  The issue of quality worldwide accounting standards is a matter of economic and public policy, so many views will be considered. Many countries have adopted IFRS using this process – the national standard setter works with the IASB, then exposes the standard domestically, and finally adopts it if it meets domestic general acceptance. What Happens If the Public Do Not “Generally” Accept the Text of an Existing IFRS Principle? It is back to the drawing board at both the national standard setter (FASB) and international (IASB) levels. In the end, it makes for well thought-out standards, addressing issues across many countries. However, this does NOT impact the following three sets of major changes that are currently in process for both FASB and IASB: Revenue Recognition Lease Accounting Reporting Activities of Banks On the topic of Rev Rec, the comment period for the Revenue Recognition Exposures Drafts was completed earlier this year. The drafts were exposed by both the FASB and the IASB under both sets of review conventions. The accounting principle, whose text is shared by both U.S. GAAP and IFRS, is expected to be published next year. For Lease Accounting, it is due for re-exposure later this year. The Boards have reached consensus on what they believe is generally acceptable with the expectation that a final standard will be published late next year. Neither standard will be effective before 2015, probably more like 2016, but both have retroactive reporting we can anticipate to begin a year after publication. Financial reporting of the banking industry continues to be an issue with regulators, governments, Basel III, and both the FASB and IASB. There have been advances in the consensus on financial reporting, but the difficulty in evaluating capital adequacy and safety and contrasting that to the investors’ view remains unresolved. What Does this Mean for U.S. Company Filers? In short, U.S. public company filers will not be announcing that they are an IFRS company on a given date. No U.S. company will say “in effect March 31, 20XX, we are an IFRS company.” However, they will be up taking “Revenue from Contracts with Customers” and “Lease Accounting” during the next few years under U.S. GAAP. And after that, you can expect that U.S. companies will adopt common standards with their overseas competitors and peers as FASB exposes the IAS and IFRS statements as ASUs (Accounting Standards Updates) to the U.S. GAAP codification. What Does this Mean for Non-U.S. Filers? Non U.S. filers that already use IFRS can expect to uptake “Revenue From Contracts with Customers” and “Lease Accounting” during the next few years as IFRS, and then uptake revisions to IFRS as the Boards work through elements of the existing IFRS literature that fail to meet general acceptance in the U.S. Any Upside to This? It means that the SEC, the Government and other authorities will hopefully work together to ensure an even application of the IFRS standards to avoid things like the following: China IFRS versus U.S. IFRS or EU IFRS versus U.S. IFRS Old US GAAP rules as a crutch for IFRS in the U.S. when they are not used overseas, holding ourselves to a more particular standard Particular instances of IFRS, such as the EU carve-out on financial reporting by banks

As I was drinking my triple espresso in the cafeteria and reading yesterday’s article on CFO.com called SEC Staff Pulls Back on Accounting Convergence, I couldn’t believe my eyes. The long-standing...

The Lease Standard Train is Back on Track

As I was walking to the elevator, I ran into Seamus Moran, our resident accounting expert. Me: “Hi Seamus, where have you been? You don’t write, you don’t call, and you don’t send me flowers. I’ve been hearing more and more about the Lease Accounting topic. It looks like Congress is weighing in on it too and putting heat on FASB.According to a recent article in Reuters  “representatives Brad Sherman, a Democrat, and Republican John Campbell, have written to the U.S. Financial Accounting Standards Board warning of dire economic fallout from a plan to have companies put leases on their balance sheets."Here’s what Seamus had to say:Yes, but there have been some recent developments. The FASB and IASB cleared a logjam, resolved a final “content of the standard” issue, and articulated a way to move forward on Leases last Wednesday.  It looks like the Lease Standard Train is back on track.   We’ve just had a briefing from PwC.The Lease timeline now looks like this:Now to June 2012: The staff will write up the decisionsJune 2012: Boards will meet on “logistical” issues (glossed over)Oct, Nov, most likely December 2012: A New Lease Exposure Draft will be craftedJanuary – April 2013: Public Comment period beginsApril to September 2013: Everyone to digest the comments and draft the final standardEnd of 2013 (Probably more like Early 2014): Publish the new Lease Accounting Standards2015: Retroactive reporting 2017: New standard is effectiveIt seems that leases under one year will be treated as “rent expense”. If it doesn’t cross two (annual) balance sheets, it doesn’t really matter.This is good news in terms of clarity, resolution, and moving forward on one of the last remaining items to converge the IFRS and U.S. GAAP standards. There are ambiguities, issues, concerns, et cetera, of course, and there are bright lines (“rules”) that bother the “no rules, please” people and ambiguities (“judgments”) that bother the “clarity, please” people, but at least the train isn’t falling off the tracks. 

As I was walking to the elevator, I ran into Seamus Moran, our resident accounting expert. Me: “Hi Seamus, where have you been? You don’t write, you don’t call, and you don’t send me flowers. I’ve been...

Oracle Applications Support the Latest XBRL Taxonomy

The U.S. Securities and Exchange Commission (SEC) has adopted the new 2012 U.S. GAAP Financial Reporting Taxonomy used for creating and submitting financial reports using eXtensible Business Reporting Language (XBRL). Oracle Hyperion Disclosure Management supports the latest taxonomy, enabling financial managers to easily comply with the latest filing requirements. The taxonomy is a list of computer-readable tags in XBRL that allows companies to annotate the voluminous financial data that is included in typical long-form financial statements and related footnote disclosures. The tags allow computers to automatically search for, assemble, and process data so it can be readily accessed and analyzed by investors, analysts, journalists, and regulators. You do not have to have Oracle Hyperion Financial Management, used for consolidating financial results, to generate XBRL. You just need Oracle Hyperion Disclosure Management to generate XBRL instance documents from financial applications, such as Oracle E-Business Suite, Oracle PeopleSoft, and Oracle JD Edwards EnterpriseOne, and Oracle Fusion General Ledger. To generate XBRL tags and complete SEC filings using your existing financial applications with Oracle Hyperion Disclosure Management, here are the steps: Download the XBRL taxonomy from the SEC or XBRL Website into Hyperion Disclosure Management to create a company taxonomy. Publish financial statements from the general ledger to Microsoft Excel or Microsoft Word. Create the SEC filing in the Microsoft programs and perform the XBRL tag mapping in Oracle Hyperion Disclosure Management. Ensure that the SEC filing meets XBRL and SEC EDGAR Filer Manual validation requirements. Validate and submit the company taxonomy and XBRL instance document to the SEC. Get more details about Oracle Hyperion Disclosure Management.

The U.S. Securities and Exchange Commission (SEC) has adopted the new 2012 U.S. GAAP Financial Reporting Taxonomy used for creating and submitting financial reports using eXtensible Business Reporting...

Will IFRS' “Revenue from Contracts” Meet General Acceptance this year?

As I was getting my daily triple espresso, I ran into my good friend Seamus Moran, our resident accounting expert and walking encyclopedia. Me: "What's up, Seamus? What's going on with the exposure draft for Rev from Contracts?"Seamus: He says in his very professor-like, Irish accent:The comment period on the IASB & FASB Exposure Draft “Revenue from Contracts with Customers” closed in the middle of March.  The Boards had received a little over 20 comment letters. The staff in London, UK and Norwalk, CT  will complete their report on the comment letters by July, and both Boards will have completed their subsequent redeliberations by autumn.  It is anticipated that the principle will be published by both Boards later this year in 2012.The principle replaces “Deferred Revenue” with the concept of a liability to customers in respect of obligations to provide goods or services not yet satisfied.  That is, you no longer amortize a sales invoice, but instead, you track what goods and services you owe to customers.  Revenue is recognized in respect of goods and services for which you have satisfied the customer, valued at the consideration you expect to receive in respect of each.  The Boards articulated 5 steps in reconizing revenue. The principle applies to the following:All public companies who report to their owners using IFRS, that is, who are quoted on any stock market except those in Japan, India and the USA, and All public companies who report to their owners using US GAAP, that is, who are quoted on any stock market in the USA. Any other entity that chooses to use IFRS or US GAAP The principle applies to any industry that gains revenue from contracts with customers (that is, all) except revenue that is related to insurance contracts or leasing contracts. The principle replaces IAS 16.  It also replaces topic 605 in the US GAAP Codification, as well as parts of topics 340, 360, 430, 908, 910, 912, 915, 920, 922, 926, 928, 932, 940, 942, 948, 952, 954, 970, 976, 978 and 985 plus other related sub-topics.An effective date for the principle has not been announced. The Boards have said it will not be effective before June 2015.The text of the exposure draft and explanatory collateral (podcasts, decks) can be downloaded from the web-sites of the FASB and the IASB.For our Oracle customers who are concerned about Oracle's software being able to handle these changes:Oracle is monitoring these changes and creating design documents in anticipation that the change will become generally acceptable. However, we don’t write code until the regulations are final. (You know, why build the house before you get all the permits?)  We are in discussion with the FASB & IASB about the duration of the period between the publication date and effectivity. 

As I was getting my daily triple espresso, I ran into my good friend Seamus Moran, our resident accounting expert and walking encyclopedia. Me: "What's up, Seamus? What's going on with the exposure...

Revenue Recognition: Performance Obligation Pass a Hurdle

I met up with Seamus Moran, our resident accounting expert, to get his thoughts about the latest happenings with IFRS. Last week, on March 13,  the comment period on the FASB and IASB exposure draft “Revenue From Contracts with Customers” closed.  FASB and IASB have just over 20 comment letters – a very small number.  The implication is that that the exposure draft does reflect general acceptance, and therefore will be published as both a US and Internationally Generally Accepted Accounting Standard. At a recent conference call, FASB and IASB expected to complete their report to both Boards on the comments by early summer, complete their deliberation of the comments by the fall and draft the final standard text by late this year. It is assumed the concept of Performance Obligations would become US GAAP and IFRS in place of the existing standards.  They confirmed that all existing US GAAP and IFRS guidelines would be withdrawn, and that they were in dialogue with the SEC on withdrawing the SEC guidelines on the revenue issue as well.The open question is when will Performance Obligations become effective?  The Boards have said that they would like this Revenue Recognition standard and the the Lease Accounting standard to be effective at the same time because what isn’t either insurance, interest, or a lease is a revenue arrangement.  However, ascertaining what is generally acceptable in respect of Leases is proving a little elusive, and the Boards have recently diverged a little on the P&L side of the accounting (although both are in agreement that there will be no off-balance sheet leases).  It is therefore likely that the Lease standard might be delayed. One wonders if the Boards will  define effectivity of the Revenue standard independently of the Lease standard or if they will stick with their resolve to make them co-effective.  The Boards have also said that neither standard will be effective before June 2015.Here is the gist of the new Revenue Recognition principle and the steps to apply it:Recognize revenue to depict the transfer of goods or services in an amount that reflects the consideration expected to be entitled in exchange for those goods and services.Steps to apply the core principles:Identify the contract with the customer Identify the separate performance obligationsDetermine the transaction priceAllocate the the transaction priceRecognize Revenue when a performance obligation is satisfied

I met up with Seamus Moran, our resident accounting expert, to get his thoughts about the latest happenings with IFRS. Last week, on March 13,  the comment period on the FASB and IASB exposure draft...

Update on Leases

I was skimming my various news articles and found an article from Accounting Today on the topic of leases. It seems FASB and IASB are not on the same page regarding income statement changes for leases. On Wednesday, February 29, in London, the IASB and the FASB each voted for different income statement models on Leasing. Both boards’ decisions result in the same expense curves over time (flat for real estate, front-loaded for gear). However, FASB’s is based on an “interest-based amortization method,” under which leases that transfer substantially all of the risks and rewards of the risked asset would be accounted for under a right of use model.  IASB’s is based on “underlying asset values,” which would recognize leases on the balance sheet at the present value of the expected lease payments, just like the FASB, but the right of use asset would be amortized based on the estimated consumption of the value of the underlying lease asset. In other words, companies would need to devise a formula for the estimated percentage of consumption and then apply that to the fair value of the underlying asset to represent the lease expense in any period. The higher the estimated rate of consumption, the more the income statement looks like a purchase and a financing, similar to owning, but it’s proportionate. The lower the rate of consumption, the more the income statement effects would resemble a straight-line pattern. Leslie Seidman, FASB Chair, says no worries, we’ll work it out.  Seidman does not believe the disagreement with IASB will greatly delay their already delayed project on leasing standards. She said. “To me that is not a material delay.”Oracle has been closely following the Accounting Convergence projects initiated by the boards of FASB and IASB since the inception in 2002. Oracle is also an active member of the IT Company Discussion Group.  One of the key projects is to synchronize the accounting standards for Leases across US GAAP and IAS. The stated objective is to bring all assets and liabilities relating to the lease onto the balance sheets for lessors, lessees, landlords and tenants.This proposed change could impact Oracle’s customers who engage in providing leases to their customers (Captive Lessors, Bank Lessors, Independent Lessors, Commercial  or Retail Landlords) or those who use assets through a lease arrangement (Equipment Lessees, Commercial or Retail Tenants). The products in Oracle’s E-Business Suite we have identified for analyzing the impact of the proposed standards are Oracle Lease & Finance Management (for equipment lessors), Oracle Assets / Oracle Payables (for equipment lessees) and Oracle Property Manager (for real estate landlords and tenants).An exposure draft for Lease Accounting was issued in 2010. Currently the boards are deliberating on the feedback received. The boards plan to issue a revised exposure draft in the summer of 2012.Oracle has been working with many customers in various industries (e.g., financial services, restaurants, insurance companies, and telecommunications) and sharing our updates with them from Oracle Development on Lease Accounting Convergence.

I was skimming my various news articles and found an article from Accounting Today on the topic of leases. It seems FASB and IASB are not on the same page regarding income statement changes...

SEC Still Kicking the Can on IFRS & Revenue Comment Period Closing Soon

It seems like I’ve been blogging about how US GAAP will adopt, converge, endorse, or condorse IFRS for ages. I’m starting to feel like a broken record as the SEC keeps kicking the can down the IFRS road. I wish I had something exciting or even concrete to say about this topic, but I don’t. SEC Chief Accountant James Kroeker says the SEC is getting closer to deciding on switching to IFRS. In a recent Reuters article, James Kroeker, was quoted as saying, "We are hopeful we can put forward a model." “Hopeful?” Well, I’m hopeful I will win the lottery some day. Kroeker also said he will make a proposal to SEC commissioners in "coming months" (meaning more than a couple and less than many) on how the U.S. could switch. I understand that this is a very important decision that impacts at least 12,000 U.S. public companies (not to mention the thousands of private ones), but it just seems we’ve been dragging this out for way too long, especially when IFRS is not truly a single set of global standards. Each country has its own rendition of the same song. Reminder: On March 13th, 2012 the Revenue comment period closes. Back in November 2011, IFRS and FASB issued a revised exposure draft, “Snapshot: Revenue from Contracts with Customers.” The deadline to send comments is March 13, 2012.

It seems like I’ve been blogging about how US GAAP will adopt, converge, endorse, or condorse IFRS for ages. I’m starting to feel like a broken record as the SEC keeps kicking the can down the...

How Oracle Solutions Handle Currency Changes

There’s been quite a bit of press lately about countries wanting to abandon the euro. I remember working in Development for E-Business Suite General Ledger back in 1997—2002 when we enhanced our multiple reporting currency functionality in preparation for countries adopting the euro. We spent years designing and developing the Euro as Functional Currency feature in preparation for when euro coins and notes were introduced on 1 January 2002 replacing all national currencies. I seriously doubt that EU countries will abandon the euro (since it would lead to disastrous political consequences), but if it happened, how would Oracle’s applications support this? I asked Seamus Moran, our resident accounting expert, and he enlightened me with the following. According to Seamus, it would be similar to changing a country’s operating and accounting currency. In fact, we’ve deployed our currency changing software as recently as 2010 in Estonia, when they adopted the euro. We used it and earlier versions of it in many countries when they changed currency – Malta, Venezuela, Romania, Turkey and the original Euro countries, and E-Business Suite has converted about 2,000 ledgers & sets of books. PeopleSoft and JDE have similar functionality. How it works in E-Business Suite Release 12 is that the programs create and initialize a new ledger in the target currency. They add a new currency accounting value to your existing old currency transactions in the subledgers, supporting the balances in the new currency ledger. Then, in the new currency environment, you enter your new currency invoices and transactions in your subledgers (business as usual). You will be able to pay and collect  on the old money items with the new currency. The programs also convert open orders in both the sales and procurement cycles, and other currency transactions. The software is maintained and delivered by Oracle Software Services India, part of Oracle Consulting, and takes a weekend for the production run including pre-processing work, the process, and post-process reconciliation. Usually one weekend to test the process in your environment, and another “clean” trial run are required. Picture of the process:BeforeProcessAfterOld MoneyGLCreate new GL:TB in New MoneyNew “New Money”GLA|A|Old MoneySubledgersUse the same old subledger but make old money amounts be “entered” and add new money “accounting” amountsOld “Old money”Subledger withNew Money Accounting. Old money is FX data

There’s been quite a bit of press lately about countries wanting to abandon the euro. I remember working in Development for E-Business Suite General Ledger back in 1997—2002 when we enhanced our...

Interesting Fall for Accounting Standards

It's been awhile since I've blogged about IFRS, accounting standards, etc. So I met up with Seamus Moran, our resident accounting expert, to ask for an update. Seamus says he's looking forward to an interesting fall in terms of  accounting standards.  First of all, we are anticipating that Mrs. Shapiro at the SEC will discuss “the role of IFRS in the US’ reporting environment."  In March 2010, she said she would review the progress the nation had made in preparing for IFRS and the progress the IASB and the FASB had made in converging to new improved standards. She would then discuss the issue in light of that progress. SEC Progress The SEC staff has looked at the nation’s preparedness and has made progress in the following areas: An IFRS beginning point for tax returns (coordinated with the IRS) Analysts understanding of IFRS statements CPAs studying IFRS for the uniform test and CPEs with CPA firms being ready to audit IFRS financial statements  FASB and IASB Progress The FASB and the IASB have also made progress. While they have postponed publishing a standard on the form of financial reporting following a negative reception of a staff exposure draft last year, they are almost ready to re-expose both Lease Accounting and Revenue from Contracts with Customers. (Both exposure drafts are anticipated to become standards next year).  They have reached a consensus between themselves on how to approach financial institution issues and are staying abreast of Basel III and the various countries' responses to the banking and currency crisis. In fact, they’ve updated and issued several standards related to financial instruments, valuations, and impairments of financial instruments.  They’ve also reached consensus on how companies should report on investment companies and other controversial but technical areas. Things to Consider Even though sufficient progress has been made by the SEC, and the US should have a much clearer picture very soon, one thing to consider is that the SEC Act of 1932 requires that US filers file under Generally Accepted Accounting Principles.  This is what gave rise to the notion of US GAAP and the birth of FASB to articulate which accounting principles were in fact "generally accepted."  The IASB has followed due process in seeing that IAS and IFRS statements went through a generally accepted process, and US institutions were part of that, but they have not been publicly exposed by FASB.   Another thing to consider is that the US is committed to and has been encouraging the adoption of common worldwide standards for some time, and the adoption of IFRS in other countries has partially been in response to that pressure; those countries are now expecting and pressuring a degree of reciprocation on our part. Condorsement With both of these in mind, the expectation is that the SEC will propose a process named "condorsement."  Mrs. Seidman, the chairman of the FASB, has endorsed this idea as recently as October 24th in a speech in Nashville, TN., to the National Association of State Boards of Accountancy.   With condorsement, the FASB would expose each of the IAS & IFRS statements that have not been published through the Convergence process under the IASB-FASB memorandum of underrating (MoU) as Accounting Standards Updates (ASUs) to the GAAP Codification.  If endorsed, they would become US GAAP.  If not endorsed, then back to the drawing board of convergence. One would expect that most would be endorsed, given that both the SEC and the EU believed that none made a material difference to the accounts filed as far back as 2007 and permitted foreign files to use the other GAAP when filing in respect of listings in their jurisdictions. Exposure Drafts On Their Way Next, we are expecting the new exposure drafts of Lease Accounting and Revenue from Contacts with Customers.  They were slated to be published before the changing of the guards at the Boards (Mrs. Seidman succeeded Mr. Herz at the FASB, and Mr. Hoogervorst succeeded Sir David Tweedie at the IASB in June 2011), but in the interest of firming up general acceptability though comprehensive discussions, they have been delayed until the fall, and it looks like they will be delayed until the new year. Both standards have been substantially redeliberated, and many provisions of the original exposure drafts are now different, but the principles – that leased assets and liabilities must be on somebody’s balance sheet, and that the liability for items billed not delivered is reported as a real liability to customers rather than a future P&L item – remain at the core of the standards.Given the work of the Boards in exposing and discussing the standards, it is expected that exposure drafts, once published, will survive the 120 day review period without further changes, and that they will become both US GAAP and IFRS in 2012.   The Boards have announced that they will not become effective before June 2015, and that date will most likely slip as the publication date slips.  All quoted companies world-wide are impacted by these standards – they change both existing GAAPs substantially.   Restatement reporting will be effective from but not sooner than June 2013, and among the changes being proposed are easements to the reporting challenges.  The SEC & Boards have included discussions with the software industry on the availability and implementation of appropriate software in their deliberations and have taken our estimates into consideration in the effectivity scheduling. In Summary We can expect to have clarity on both the scheduling of the Lease Accounting and Revenue Recognition standards under both US GAAP and IFRS separately. The US is also on plan for incorporating the rest of IFRS into the US environment over the next few months.  It looks as though the Leases and Revenue topics will be co-scheduled with standards available next year with implementation in the following few years, followed by “condorsement” of existing IFRS standards spread over the following years.  It does not look like we will have an IFRS big bang, and it appears that “dual reporting” will be on a standard by standard basis to the extent that a particular standard impacts a filer.

It's been awhile since I've blogged about IFRS, accounting standards, etc. So I met up with Seamus Moran, our resident accounting expert, to ask for an update. Seamus says he's looking forward to an...

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