【正文】 IAS adjustment entry table T4 Internal transaction table T5 Consolidation account pair table The changes to the FMIS Reporting system is shown in the following list: New system processes P5 Query info for elimination P6 Enter elimination entries P7 Elimination process P8 Export elimination P9 Query info for IAS adjustment P10 Enter IAS adjustments P11 IAS adjustment process P12 Export IAS adjustments P13 Export remaining internal transactions P14 Export disclosure amp。 elimination reports amp。 IAS supporting data file New tables T1 Special disclosure items New system processes P1 Internal transaction data entry P2 Internal transaction file export P3 Special disclosure items amp。 Ending balance ? Loans Analysis Report ? Director’s remuneration report Salaries, allowances and other benefits Contribution to retirement benefit scheme System Design for FMIS Modification 9 FMIS also need to produce certain information that is required to facilitate annual audit. Business requirements for annual audit The required information for accounts receivable, longterm equity investment, longterm nonequity investment has been listed in disclosure requirement. The only remaining items for annual audit are listed below: ? Shortterm investment Investment type, investee, security type, par value, historical cost, rate, due date, interest receivable or dividends receivable, premium /discount and its amortisation ? Notes receivable Notes type, par value, rate, drawer, due date ? Other receivable Debtor, amount, post due days ? Assets revaluation Assets class, book value before revaluation, book value after revaluation ? Shortterm loan Loaner, amount, rate, due date ? Notes payable Owner, par value, rate, due date System Design for FMIS Modification 10 Gap analysis Chapter 2 System Design for FMIS Modification 11 Changes in financial reporting process PetroChina needs to implement a large scale change in its financial reporting process. Current ? Consolidation is done by the auditors using spreadsheets and manual data collection and manipulation ? FMIS report is not pliant with PRC accounting standard for jointstock pany. ? IAS report is produced by the auditors using manual method ? Reporting is done for the whole CNPC with the current org structure ? Use current chart of accounts Future ? Consolidation will be done by PetroChina accountants as part of the regular accounting process using FMIS ? FMIS report will be pliant with PRC accounting standard for jointstock pany. ? AS report is produced by Petrochina accountants using FMIS ? Reporting structure for PetroChina will be separated from the old CNPC. New org structure will be put in place ? New chart of accounts will be in effect System Design for FMIS Modification 12 Systems issues The following systems issues are identified as critical to the ability for PetroChina to be able to do consolidation and produce the required reports REQUIREMENT ? Reconciliation of transactions that occurs across different accounting entities. ? Some detailed information need to be passed up the corporate reporting structure. SYSTEM ISSUE ? This is difficult to do with the current FMIS since FMIS treats each accounting entity as independent from other accounting entities. ? This is not possible in the current FMIS since FMIS only transfer reports, not detailed information. CONSOLIDATION PROCESS REQUIREMENT ? IAS report have some different grouping of accounts pared to PRC reports ? In the interim, CNPC requires reporting based on locations in addition to the “normal” reporting procedure along segment ? Disclosure items need to be produced and rolled up SYSTEM ISSUE ? Current FMIS aggregates report up the hierarchy and it is not possible to see or reconstruct the individual accounts, therefore it is not possible to regroup accounts at higher level. ? Currently FMIS reporting hierarchy follows a strict tree pattern with one entity reporting to only one parent. ? Current FMIS can not produce this data nor roll it up REPORTING PROCESS System Design for FMIS Modification 13 Overall approach and design principles Chapter 3 System Design for FMIS Modification 14 Design principles / goals ? The design has to be implementable prior to the IPO ? Modified FMIS must be able to produce all required reports with minimal manual work ? Avoid major changes in business process ? Avoid major changes in FMIS which needs long development time and/or high risk of destabilizing FMIS ? Marginal changes to FMIS is preferred to marginal change in business process ? Changes in business process or FMIS should have minimal dependency on shortterm improvement to IT infrastructure. ? Due to current limitations in telemunication, the amount of data that needs to be transferred should be minimized. ? To ease transition, the modified FMIS need to have data patibility with current FMIS The following principles have been followed in creating the design for the new system: System Design for FMIS Modification 15 Business process overview Chapter 4 System Design for FMIS Modification 16 Location Level 5 Segment Level 3 HQ Corp Level 1 Lgr Lgr Lgr+ Lgr+ IAS IAS PRC Segment A Segment B Elim Elim PRC Elim IAS Elim IAS Elim IAS Lgr+ Lgr+ IAS IAS Elim IAS Elim IAS IAS Different segment, different location Same segment, different location Same segment, same location Different segment, same location LEGEND Ledgers Reports Modified report/consldtn system Consolidation entry Consolidation file Data flow diagram of rollup process PRC PRC Lgr Lgr Notes