【正文】 : Lgr+ = ledger report plus some other special reports. System Design for FMIS Modification 17 Roll up and consolidation process chart Enter transactions for Level 6 HO Enter same segment, samelocation elimination entries Import reports from level 6 HO ledgers Create reports for Level 6 HO ledgers Receive reports amp。 accumulated depreciation ? Cost: Beginning balance, additions, disposals, ending balance。 Expenses not deductible for tax purposes ? Movement of allowance for doubtful accounts Balance at beginning of period, Provision, Deductions, Balance at end of period ? Movements in allowance for diminution in value of inventories Balance at beginning of period。 depreciation amount based on unreevaluated amount by unit of production method or straight line method ( depend on assets class ) ? Deferred business initial cost ( preoperation expenditures ) ? Beginning balance, ending balance ? Monthly revaluation of noncurrent moary assets amp。P HuaBei Gamp。P Natural gas (inc. gas pipeline) Refining amp。PetroChina Requirements and design of FMIS modifications FMIS enhancement project December 1999 Contents 1. Business requirements 3 2. Gap analysis 10 3. Overall approach and design principles 13 4. Business process overview 15 5. Overview of system changes 18 6. New data files and associated processes 24 7. System processes for consolidation and reporting 29 Appendix A Report formats 32 2 System Design for FMIS Modification System Design for FMIS Modification 3 Business requirements Chapter 1 System Design for FMIS Modification 4 To be able to do an IPO, PetroChina need to be able to produce certain key financial reports To produce these reports, some changes to FMIS needs to be implemented. Business requirement overview The FMIS system need to be able to produce the following reports: ? Annual consolidation reports as required by China Finance Ministry based on the PRC GAAP for jointstock pany. ? Quarterly consolidation of reports of the overall ListCo based on the IAS is required for publicly listed panies. ? Disclosure items are also required by IAS and PRC GAAP for jointstock pany. ? Some other information is required to support annual auditing. All the above reports (except the audit information) will need to be produced along the new PetroChina organization structure as described in the following page. The above reporting requirements are detailed in the next pages. System Design for FMIS Modification 5 PetroChina Level 1 PetroChina Level 2 Specialized Co/Business Group Level 3 Segment Level 4 Type Eamp。Gas Eamp。D China oil HQ Beijing Eamp。P segment specific ? Cost of successful well ( succeeded in the period ) ? Assets and depreciation ( straight line method vs UOP) and related tax credit ? Assets class, accumulated depreciation amount based on reevaluated carrying amount by straight line method。 IAS) All data listed in internal transaction reports, only different entity name ? Ine analysis report(IAS) Special deductions relating to exploration and production activities, Ine not subject to tax。 Balance at end of period ? Movement report of PPE amp。 Deductions。 IAS support data P1 For internal transactions, enter customer/ supplier code System Design for FMIS Modification 20 New or modified functionalities Transaction system New data file F1 Internal transaction data file F2 Disclosure amp。 IAS supporting data file F1 Internal transaction data file T4 Internal Transaction P13 Export remaining internal transaction Elimination Entries Internal transaction amp。 IAS supporting data file F1 Internal transaction data file F4 IAS adjustment entry file P12 Export IAS adjustment P15 Print IAS reports T3 IAS adj IAS adjustment entries Analyze info and determine required IAS adjustment P9 Query IAS adjustment data IAS adjustment info reports Some major changes are required in the FMIS Reporting system P19 Import internal transaction P6 Enter elimination entries P18 Import elimination entries P17 Import IAS adjustments P10 Enter IAS adjustments P15 Print PRC reports P20 Import disclosure /IAS support data T5 Consolidation account pair System Design for FMIS Modification 22 New or modified functionalities Reporting system New data file F1 Internal transaction data file F2 Disclosure amp。 disclosure requirement IAS ine statement definition IAS balance sheet definition IAS cash flow statement definition Statement of owner39。 IAS disclosures and supporting data for user to do IAS adjustment. REPORTING SYSTEM Lower level Reports P14 Export disclosures amp。 IAS support data P20 Import disclosure amp。 TABLE STRUCTURE Description Credit amount Account code Debit amount Period Business entity code System Design for FMIS Modification 29 System processes for consolidation and reporting Chapter 7 System Design for FMIS Modification 30 P9 Elimination process and PRC reporting The elimination process involves two steps: 1) Elimination entry preparation includes step P6 amp。 Adjusted credit amount of one report item(account) = Consolidated credit amount of the report item(account) + Total credit amount of all adjustment entries 3. Produce the IAS report from the IAS adjusted temporary ledger report. This is done by creating the reports using the IAS adjusted temporary ledger report as the source. After the IAS report is created, it is remended that the report be stored for longterm record and archive. IAS reporting process is performed by applying IAS adjustment entries to the consolidated ledger report Consolidated Le