HFM-Intro

An Introduction To Hyperion Financial Management

Amit Sharma Hyperion/OBIEE Tr Trainer  ainer  Learnhyperion.wordpress.com

Agenda : Fundamentals of Financial Consolidation Describe the features of Financial Management Describe the Hyperion products bundled with

Financial Management Describe the product architecture Describe related Hyperion products

Hyperion Financial Management Hyperion Financial Management is a

fnancial consolidation and reporting application built with advanced Web technology, but used and maintained by the fnance team. It provides fnancial managers the ability to rapidly close and report fnancial results, meet global regulatory requirements, reduce the cost o compliance and deliver confdence in the numbers.

What is Financial :  The combined nancial statements of a parent company and its Consolidation subsidiaries! Financial Consolidation [ The Merger of Two Enterprises ]

or "ecause consolidated nancial statements present an aggregated loo# at the nancial position of a parent and its subsidiaries$ they enable you to gauge the o%erall health of an entire group of companies as opposed to one company&s stand alone position! "usiness *ntelligence

*n another accounting conte+t$ nancial consolidation refers to %arious processes that will streamline the internal nancial reporting of a single company • Consolidating nancial data from di%erse locations and across multiple general ledgers$ performing multi'currency con%ersions$ untangling outmoded spreadsheet based data collection processes$ incorporating changes from reorgani(ations$ mergers$ and ac)uisitions!

Consolidate

data )uic#ly from multiple general ledgers and multiple charts of account3 Consolidate data from %arious business perspecti%es and by multiple structure %ersions /this year$ last year$ proposed13 4upport local and multiple base currency reporting3 5eport on the impact of currency 0uctuations /actual$ forecast and budget rates13 ,hen do we need Financial Consolidation : 

Consolidated nancial statements are re)uired when there are two or more a-liated companies! ,hen a parent company either directly or indirectly controls a ma.ority interest of a subsidiary$ consolidated nancial statements must be presented! /Cash 0ows$ and nancial position of the combined entity1   ,hen one company ac)uires another company$ a consolidated balance sheet needs to be prepared! The rst step is to eliminate the e2ects of any inter'company transactions!

 The problems '  consolidating nancial data from di%erse locations and across multiple general ledgers$ performing multi'currency con%ersions$ and untangling outdated spreadsheet  based data collection processes$ incorporating changes from reorgani(ations$ mergers$ and ac)uisitions! Financial Data 6uality Management  :Financial consolidation solutions can meet this challenge by streamlining data collection and integration  from multiple sources$ ma#ing the monthly close faster and more e-cient while turning disparate data into useful$ business critical information!

Financial Consolidation  The Consolidation Module enables the user to generate the following types Consolidated Financial 4tatements: 7 Consolidated "alance 4heet 8 balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined$ thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single rm! 7 Consolidated Trial "alance 7 Consolidated 9rot  ;oss 4tatement

4preadsheets ,hen the spreadsheet approach is used$ spreadsheet templates are created by central head)uarters and e'mailed to remote locations! Then$ on a monthly or )uarterly basis$ these spreadsheets are updated and e'mailed bac# to central head)uarters$ where they are consolidated into a master spreadsheetlobal consolidation features  4calable web architecture  4mart dimensionality  Complete audit trails  9owerful reporting and analysis tools  5obust data integration

FD6M

Financial Compliance

*n 4arbanes ?+ley @A@ scenario$ it is important to #eep some things in mind which help in the o%erall controls in the nancial closing process! B! Has the management documented the entire nancial closing process in su-cient detail from data collection to nal report ma#ing! ! Ha%e control acti%ities been documented which dene the controls realting to the nancial closure process! ! Has a ris# assessment been conducted to assess the inherent ris#s in the closure processs! @ How and by whom is the nancial closure process monitored! How is completeness of the process determined! ! How are communication procedures dened which ensure a smooth nancial closure in a timely manner!  The users of a companys nancial statements