The HFM System – Financial Consolidation and Reporting

Conforming to the iSOX and Goshen regulations require the information system to be of a high standard in the areas of controls, documentation, orderly processes, etc.

Consolidation of the financial reports using the Hyperion Financial Management (HFM) system meets all said requirements. We guarantee a rapid, full deployment of the system in your firm, and stand by the project targets as well as the quality of the product.

  • The HFM system is a dedicated financial report consolidation tool which supports the consolidation and reporting under various regulations (IFRS, US GAAP, etc.). Additional manual and/or automatic adjustments can be posted, consisting of a superimposed layer of data, above and beyond the demands of local regulations.
  • The system supports all consolidation methods (full, proportional, equity, etc.) and performs the consolidation according to the managed entity structure (statutory or management), while presenting sub-consolidations figures wherever required.
  • The HFM system, being multi-dimensional, facilitates drill down analysis in the various hierarchies of its dimensions, such as: timeline, firms, customers, products, accounts, etc.
  • The system facilitates the formulation of a unified accounting terminology for the benefit of the system’s entire user base.
  • The system allows the comparison and ensures the compatibility of statutory and management reports.
  • The system performs the automatic calculations required for the consolidated financial report – capital and investment eliminations, equity profit elimination, allocations of the original differences, minority calculations, conversion to the parent currency, calculation of the converted capital principal, etc.
  • All of the management and financial reports can automatically be produced with the system, using its various reporting tools. These include: the balance sheet, a profit and loss statement, a statement of changes in shareholder’s equity, cash flow statement, clarifications, working papers, etc.
  • Wherever required, the user can intervene in the process by posting additional manual adjustments (at the level of the stand alone / consolidated level).

The HFM system – from Operational to Managerial Excellence

Common Current Status

  • An old and outdated reporting system
  • Lack of standardization in the reporting regulations and the reporting resolution
  • A dearth of external reports, pure emphasis on cross-group management reports
  • Pure or no KPI analysis capability
  • No simulation performing capability
  • No integration between Excel-based budget modules and the actual reporting

The Vision

  • A unified reporting system
  • Unified sets of reporting rules for management and statutory needs
  • More emphasis on managerial information for improved management reporting and running of decision-supporting simulations
  • An analysis and comprehension of the organizational data and needs from a overall and total perspective, and by the different levels

Two steps are required to effect the change:

  1. The formulation of common reporting terminology across the organization
  2. Implementation of an integrated information system for the entire organizational hierarchy and functions

The advantages of working with the system:

  • A significant reduction in the duration of preparation the consolidated financial report, specifically in the areas of data collection, formulation of one cross-group terminology, improving of the inter-company operations, calculation of conversion principals, etc;
  • The system is SOX compliant;
  • Cost reductions of the external accounting firm audit;
  • An improvement of the financial team’ efficiency (no more wasted time of monitoring, verifying  and collection of data, manual typing and time freed for a quality analysis of the data);
  • Minimization of human-error-induced problems;
  • Based on credentials, the data is available to everyone and anytime, effectively reducing the dependency and wasted time due to time-zone differences of the various globally-spread companies;
  • The availability of the data and the use of the system’ sophisticated report generators facilitate the rapid and flexible production of numerous diverse reports with a minimal investment of valuable resources;
  • Changes in the group’ structure do not require a dramatic adjustment to the reporting packages and/or the consolidation process;
  • A reduction of the time required to produce pro-forma statements, restatements or simulations;
  • A reduction of the time required to shift from a presentation based on one accounting regulatory set to another;
  • A single database is used for both management and accounting reporting, effectively eliminating the need to compare and contrast these reports. Since the data source is one, the results will forever be identical.
  • With accessibility to data originating in the subsidiaries, down to a leaf level account, and sometimes to the single ledger entry, a lot of time is saved that was once required to monitor the data source. Dependency on the accountants at the subsidiary level and their availability is eliminated, specifically concerning the inter-company adjustments;
  • The system and its analytical controls cleanse the data while it is input’ ensuring fidelity and reliability of the data and providing a significant time saving;
  • The investment required to implement the system is dwarfed by the system’ advantages (the firms professional are needed for an intense commitment mainly during the specification and system testing phases;

For more details, please contact Orit Chen, EPM/Financial Reporting and Consolidation Manager.

Cell: 050-3064844, Office: 03-7622900,