OREANDA-NEWS. On November 12, 2007 Genser Group has launched a project to automate consolidated IFRS financial reporting based on Cognos Controller, reported the press-centre of IBS.

This will be Russia's first implementation of the flagship Cognos solution for financial consolidation based on international standards. IBS supplied the Cognos software and provided training for the Customer's project team.

Genser Group is one of the leaders in the Russian car retail market, shows a high rate of growth and implements a strategy focused on boosting its capitalization. Having attracted Volga River One Capital Partners direct investment fund as its strategic investor in 2007, the Group currently needs to be able to prepare consolidated IFRS financial reports.

Therefore it was decided to implement an information system that would support consolidation of financial reports according to methods adopted by the Group and preparation of required report forms to be submitted to auditors and shareholders. The Cognos Controller solution was selected to automate those processes. This product is designed to support IFRS/GAAP financial consolidation standards, Basel II standards for banks conducting international settlements, Financial Accounting Standards Board (FASB) and Sarbanes-Oxley Act requirements. Along with the traditional consolidation tasks (currency conversion, minority interest accounting, goodwill calculation, inter-company revenue elimination, etc.), the software product also offers extended report generation capabilities to look at data from a variety of analytical perspectives. In addition, Cognos Controller supports keeping track of changes in the holding company organization structure and provides automatic generation of a detailed audit trail meeting the requirements of both external and internal auditors.

Before opting for the Cognos product, Genser Group held a number of consultations with Cognos professionals and IBS consultants who have unrivalled experience of implementing Cognos products for companies of various industrial specializations. IBS has a solid expertise on the subject of financial consolidation and employs certified Cognos Controller implementation professionals. IBS held a demo of the functional capabilities of the product, configured a test consolidation model and provided consultations on the implementation project organization for Genser professionals.

The following are comments by Sergei Ustimenko, Financial Director, Genser Group: "Submission of IFRS reports is our obligation to the investors. We plan to prepare those reports on a quarterly, rather than annual, basis, therefore it is important to make collection and consolidation of financial information easier for us. The financial models IBS demonstrated to us showed that the Cognos platform can be used for those purposes and assist the Group in setting up the budgeting process and analyzing planned and actual results. Furthermore, Genser reports undergo financial audit, therefore we opted for a solution recognized by the international audit community as the industrial standard".

Alexander Saksin, Deputy Director, Corporate Management Systems Department, IBS commented: "Given the customer's objectives, we believe that Cognos Controller is the best option. Its main advantages are speed and ease of implementation, ease of use and broad functionality. The solution can be customized to meet the Customer's needs without extra programming or hiring outside professionals. Genser plans to implement and customize the product on their own using consultations by IBS professionals on isolated issues only".

Before the project was launched, Genser employees gained sufficient knowledge during training organized for them at the IBS training center to be able to proceed with the implementation on their own. The training was delivered by Benedictus Van Hoof, the leading CPM architect of the Cognos office in Belgium.

Genser plans to complete Cognos Controller customization for the consolidation rules as per the Group's standards and undergo financial audit of consolidated reports generated in the system by early 2008.