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Inhaltsverzeichnis

Preface xiii

How This Toolkit is Organized xiv

Guide to Toolkit Organization xv

Table of Best Practices xvii

Table of Policies xviii

Table of Checklists xviii

Table of Process Narratives xviii

Table of Standards of Internal Control xix

Introduction 1

Improving the Fiscal Close 3

Best Practice 1: Consider the Use of a Single ERP System 4

Best Practice 2: Employ Cloud-Based Computing 5

Chapter 1: Why the Continued Focus on the Fiscal Closing Process? 7

An Overview of the Fiscal Close 9

Cycle Time to Monthly Close 10

Chapter 2: Key Pain Points and Bottlenecks 13

Chapter 3: The Components of the Fiscal Close 15

Cutoff Dates 16

Best Practice 3: Implement Cutoff Dates 16

Chapter 4: Governing the Fiscal Close Process 19

Best Practice 4: Implement a Fiscal Close Governance Process 20

Composition of GAAP 21

GAAP Hierarchy 22

Other Disclosure Standards 22

Chapter 5: The Transaction Accumulation, Reconciliation, and Sub-Ledger Close 27

Best Practice 5: Complete General Ledger Reconciliations 30

Accounting Bodies 31

Other Regulatory Requirements 31

Chapter 6: Introduction to the Standards of Internal Control 33

Best Practice 6: Implement an Internal Controls Program 34

Ensuring Success 36

Chapter 7: Roles and Responsibilities During the Fiscal Close 39

Tactical Responsibilities 40

Executive Responsibilities 43

Chapter 8: The General Ledger and Trial Balance 45

Chapter 9: The Common Chart of Accounts 47

Best Practice 7: Implement a Common Chart of Accounts 47

Sample Chart of Accounts 49

Chapter 10: Cost Centers 53

Best Practice 8: Define Business Rules for Establishing Cost Centers 54

Best Practice 9: Define Allocation Risks 55

Common Allocation Challenges 57

Best Practice 10: Implement an Indirect Cost Allocation Methodology 59

Chapter 11: The Journal Entry Process 63

Best Practice 11: Streamline Recurring Journal Entries 64

Chapter 12: Spreadsheet Controls 65

Best Practice 12: Address Spreadsheet Risks and Implement Controls 65

Balancing Risks with Controls 67

Chapter 13: Checklists for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close 69

Checklist 1: Transaction Accumulation and Fiscal Close Checklist 69

Checklist 2: Fiscal Year-End Close Sample Schedule 72

Checklist 3: Accounts Payable Roles and Responsibilities Year-End Checklist 73

Checklist 4: Reconciliation Template 74

Chapter 14: Sample Policies for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close 75

Policy 1: Account Reconciliation Policy 75

Policy 2: Accounts Payable Accruals 78

Policy 3: Spreadsheet Controls 81

Controls Standards 83

Best Practice Guidelines 84

Chapter 15: Process Narratives for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close Process 87

Process Narrative 1: Journal Entry (JE) Process 87

Process Narrative 2: Management Approval of Journal Entries 88

Process Narrative 3: Other Current and Long-Term Assets 89

Process Narrative 4: Other Current and Long-Term Liabilities 92

Chapter 16: Standards of Internal Control for the Transaction, Accumulation, Reconciliation, and Sub-Ledger Close Process 97

Standards of Internal Control 1: Journal Entry (JE) Process 97

Standards of Internal Control 2: Management Approval of Journal Entries 99

Standards of Internal Control 3: Other Current and Long-Term Assets 101

Standards of Internal Control 4: Other Current and Long-Term Liabilities 109

Chapter 17: Corporate Close and Consolidation 117

Differences Between IFRS and U.S. GAAP That Impact the R2R Process 118

How Often are New IFRS Pronouncements Issued? 119

Is IFRS, as Issued by the IASB, the Same for All Companies and Industries, in All Countries? 119

What is The Principal Standard Governing Conversion to IFRS? 120

Does IFRS Use the Same Financial Statements as Those Required under U.S. GAAP? 121

How Will IFRS Impact Internal Control Reporting and Certification under the Sarbanes Oxley Act of 2002? 122

Chapter 18: The Number of Consolidation Points 123

Best Practice 13: Automate the Consolidation Process 124

Best Practice 14: Include the People Who Impact the Close 124

Best Practice 15: Create Consistent Closing Schedules 124

Best Practice 16: Consider Fiscal Close Process Improvements 125

Chapter 19: The Number of Closing Cycles 127

Best Practice 17: Reduce the Number of Closing Cycles 127

Chapter 20: Post-Closing Entries 129

Financial Closing Strategies 129

Best Practice 18: Develop Business Rules for Post-Closing Entries 130

Chapter 21: Communication and Accountability 131

Fiscal Close Postmortem Meetings 132

Chapter 22: Financial Statement Assertions 133

Financial Statement Assertion Requirements and Application 134

Chapter 23: Checklists for the Corporate Close and Consolidation Process 137

Checklist 5: Corporate Close and Consolidation 137

Checklist 6: Executive-Level Closing Checklist 139

Checklist 7: Twenty Critical Areas to Review at Year-End 142

Checklist 8: The Year-End Financial Statement Checklist 143

Checklist 9: The Year-End Transaction Checklist 144

Checklist 10: The Year-End Payroll Process Checklist 146

Chapter 24: Sample Policies for the Corporate Close and Consolidation Process 149

Policy 4: Fiscal Close and Consolidation Process 149

The Timely Communication of Delays 152

Adjustments Requested by Field and Corporate Personnel 152

Adjustments Between Preliminary and Final Results 153

"Late" Adjustments 153

Chapter 25: Process Narratives for the Corporate Close and Consolidation Process 155

Process Narrative 5: Balance Sheet Consolidation 155

Process Narrative 6: Assets Held for Sale Due to Discontinued Operations 157

Chapter 26: Standards of Internal Control for the Corporate Close and Consolidation Process 161

Standards of Internal Control 5: Balance Sheet Consolidation 161

Standards of Internal Control 6: Assets Held for Sale Due to Discontinued Operations 164

Chapter 27: Analysis and Reporting (The Final Mile) 169

Chapter 28: Internal and External Reporting 171

Internal Reporting 171

Best Practice 19: Ask Key Questions to Define Your Internal Financial Reporting Process 172

External Reporting 175

Chapter 29: Budgeting and Forecasting 181

About the Budget Process 182

Types of Budget Processes 182

Best Practice 20: Consider Five Steps for a Successful Budget Process 184

Ten Considerations for a Successful Budget Process 188

Variance Analysis 191

Other Factors to Consider 192

Corporate Performance Management (CPM) 194

A Moving Target 194

Chapter 30: Reduce Fiscal Close Cycle Times by Moving Your Finance Function to "Dynamic" Budgeting and Planning 197

Dynamic Budgeting and Planning 197

Chapter 31: Fixed Assets and the Capital Budget 199

Best Practice 21: Establish a Capital Budget Process 199

Developing the Capital Budget 200

Best Practice 22: Implement the Capital Review and Approval Board (CARB) Process 201

Construction in Process Accounting 207

Fixed Asset Management 207

Depreciation Methods 208

Intangible Assets 211

Asset Appreciation and Asset Impairment 212

Disposal of Fixed Assets 214

The Capital Budget and Fixed Assets Business Process Risks and Challenges 217

Chapter 32: The Forecast Process 221

About the Forecast Process 222

Types of Forecasting Models 222

The Forecasting Process for Small Businesses 224

Chapter 33: The Fiscal Close and Strategic Planning 227

Expected Outcomes of the Strategic Plan 227

Best Practice 23: Include Finance and Accounting in the Strategic Planning Process 228

Best Practice 24: Use a Strategic Planning Readiness Checklist 229

Best Practice 25: Follow These Seven Steps for Your Strategic Planning Process 230

Best Practice 26: Implement Six Key Elements for Your Strategic Plan 230

Best Practice 27: Use a Standardized Table of Contents for Your Strategic Plan 231

Strategic Planning Methodologies 232

Best Practice 28: Establish Performance Metrics to Determine the Effectiveness of Your Strategic Plan 236

Chapter 34: Analytics to Detect Financial Statement Fraud 237

Best Practice 29: Use Red Flags to Detect Financial Statement Fraud 238

The National Commission on Fraudulent Financial Reporting (The Treadway Commission) 240

Use Detection Methods for General Financial Statement Fraud 243

Chapter 35: Checklists for the Analysis and Reporting Process 247

Checklist 11: Quarter-End Fiscal Close (10Q) 247

Checklist 12: Year-End Fiscal Close (10K) 251

Checklist 13: Performing Financial Statement Analysis 257

Checklist 14: Trend Analysis 264

Chapter 36: Sample Policies for the Analysis and Reporting Process 271

Policy 5: Basic Policies on Financial Reporting 271

Chapter 37: Process Narratives for the Analysis and Reporting Process 273

Process Narrative 7: Disclosure Checklist 273

Process Narrative 8: Fluctuation Analysis 274

Process Narrative 9: Cash Flow Statement Reconciliation 276

Process Narrative 10: Reporting Debt 277

Chapter 38: Standards of Internal Control for the Analysis and Reporting Process 283

Standards of Internal Control 7: Disclosure Checklist 283

Standards of Internal Control 8: Fluctuation Analysis 284

Standards of Internal Control 9: Cash Flow Statement Reconciliation 287

Standards of Internal Control 10: Reporting Debt 290

Chapter 39: The Virtual Close: Myth or Reality? 299

What is the Virtual Close? 299

How is the Virtual Close Different from the Soft Close? 300

Case Study: The Virtual Close at Cisco 300

Implementing a Virtual Close 303

Chapter 40: Roadmap: Benefits of the Fast Close 305

Different Types of Fast Fiscal Closing Processes 306

Soft Close 306

Virtual Close 307

Legal Issues Impacting the Fast Financial Close 307

Steps to Achieve a Faster Financial Close 307

Conclusion 310

Chapter 41: Accelerating the Close with Automation 311

Key Requirements for Automating the Fiscal Close 311

Key Questions to Ask During Implementation 312

System Ease of Use 312

Quality of Financial Information 313

Accounts Payable and Purchasing 314

Project Accounting 314

Addendum: Fast Close Tools and Additional Best Practices 315

Contingency Planning 315

Best Practice 30: Establish Escalation Procedures 322

Roadmap: 25 Steps to Shorten the Fiscal Close 323

The Monthly Financial Close Process Checklist 327

Foreign Corrupt Practices Act (FCPA) 336

Accelerate Your Financial Close: A 35-Step Roadmap 337

The Fast Close Compliance Toolkit 340

The M&A Due Diligence Checklist 362

Finance and Accounting Key Business Partnerships Matrix 372

Fiscal Close Risks and Challenges 374

Fiscal Close Standards of Internal Control 376

The Fiscal Close Dashboard 379

The Controller's Dashboard 380

The Detailed Fiscal Close Scorecard 380

The Project Management Toolkit 382

Glossary 387

Index 403