Moscow, Russia, May 4, 2010 – Wimm-Bill-Dann Foods OJSC [NYSE: WBD] and BearingPoint, an international management and technology consulting firm, today announced the completion of the US GAAP Consolidated Financial Reporting System implementation.
The project addressed several key tasks.
The project delivered a comprehensive corporate reporting package consisting of the US GAAP financial reporting for external users and operational management reporting for the use inside the company. Specifically, a standard methodology and business processes have been developed for the reporting function; a single chart of accounts has been created for management and consolidated US GAAP reporting. As a result, the US GAAP reporting frequency now matches that of the management reporting. All reporting is now prepared on a monthly basis instead of a quarterly basis.
Moreover, the reporting system was integrated with multiple legacy accounting systems, which enabled automatic adjustments of accounting data transformed and consolidated from Russian accounting systems into the US GAAP reporting system.
The new system implementation increased transparency of business processes through the merger of two reporting systems. The US GAAP reporting level of detail was enhanced, also thanks to implementing a monthly reporting frequency. The US GAAP reporting efforts and times have been reduced. This was achieved through automation of consolidated reporting forms, the Balance Sheet and the Profit and Loss Report; as a result both company management and external auditors received additional transparency of reporting processes.
The system has been developed in full compliance with the requirements for publicly traded companies (NYSE), and has passed an independent financial and IT audit by Ernst & Young. The company has successfully used the new system to prepare and publish its 2009 US GAAP reporting.
“Our main success was that we managed to integrate two different accounting standards previously used in the company, operational management and US GAAP. We also integrated multiple stand-alone accounting systems used by the Group companies in a single consolidated reporting system”, said Wimm-Bill-Dann Financial Controller and manager of this project Evgeny Tomilov. “In many ways it has been the new system that enabled us to publish our 20-F annual report two months earlier than last year and be one of the first companies in Russia to publish this report. Moreover, for the first time in many years we are able to remove a major issue in the SOX financial reporting.”
“The project was unique in that the RAS-US GAAP reporting transformation system was implemented entirely based on an Oracle Hyperion solution.”, noted Konstantin Popov, Partner at BearingPoint Russia. “I would like to particularly mention the excellent teamwork of Wimm-Bill-Dann staff and our consultants, and congratulate all project participants on our joint success.”
Wimm-Bill-Dann will not rest on the achievements and soon plans to implement the budgeting processes based on Hyperion Planning software. The next phase will integrate the consolidated reporting system with the budgeting and plan/actual analysis system, based on an Oracle Hyperion solution.
About BearingPoint
BearingPoint is an independent management and technology consultancy. Owned and operated by its Partners throughout Europe, BearingPoint is offering its clients the best possible value in terms of tangible, measurable results by leveraging business and technology expertise. The company currently employs 3.250 people in 14 European countries and is serving commercial, financial and public services clients.
BearingPoint offers its clients a seamless cross-border approach, strong focus on results, an entrepreneurial culture, profound industry and functional knowledge as well as solutions customised to clients’ specific needs. The firm ranks high in client satisfaction, has long-standing relationships with reputable organisations and is seen as a trusted adviser. BearingPoint has European roots, but operates with a global reach. For more information, please visit: www.bearingpointconsulting.com
About Wimm-Bill-Dann
Wimm-Bill-Dann Foods OJSC was founded in 1992 and is the largest manufacturer of dairy products and a leading producer of juices and beverages in Russia and the CIS. The company produces dairy products (main brands include: Domik v Derevne, Chudo, Imunele, Bio Max and more), juices (J7, Lubimy Sad, 100% Gold), Essentuki mineral water and Rodniki Rossii natural water, Zdraivery kids’ brand and Agusha baby food.
The company has 37 manufacturing facilities in Russia, Ukraine, Kyrgyzstan, Uzbekistan and Georgia with over 16,000 employees. In 2005, Wimm-Bill-Dann became the first Russian dairy producer to receive approval from the European Commission to export its products into the European Union.
In 2010, Standard & Poor's Governance Services confirmed WBD’s governance, accountability, management, metrics, and analysis (GAMMA) score “GAMMA 7+”. The score reflects the effective work of the Board of Directors and, in particular, the real influence of independent directors in the decision-making process and the adherence of the controlling shareholders to the highest standards of corporate governance.
For more information, please visit www.wbd.ru
