Seoul, Korea – February 16, 2010—Month-end Financial Closure Reduced to Two Days and IFRS Requirements are Met with Improved Reliability and Transparency of Financial Data
News Facts
· KT&G Corporation (KT&G), South Korea’s leading tobacco company with annual revenue of US$2.2 billion, adopted Oracle solutions including the Oracle E-Business Suite Release 12 and Oracle Hyperion performance management applications to better comply with the International Financial Reporting Standards (IFRS), which all Korean companies are required to comply with by 2011.
· KT&G is the first organization in Korea to implement both Oracle Financials and Hyperion for consolidated financial reporting to meet IFRS requirements. Oracle’s packaged IFRS solution comprises Oracle Financials, Oracle Treasury, Oracle Internet Expenses and a range of Hyperion Financial Management.
· Oracle Database and Oracle Real Application Clusters are also adopted to ensure maximum availability of the financial system.
· Previously, the disparate financial systems across the KT&G group did not allow for reliable and efficient data consolidation among its local and overseas affiliates. The use of its own in-house system made it even more difficult for KT&G and its growing number of global branches to comply with global reporting standards.
Benefits of the Implementing the Oracle Solution
· KT&G awarded the project to Oracle in February 2009. As a result of the project implementation, the standardized financial processes and the integrated view of operations have enhanced accounting transparency and financial insight. With a greatly reduced month-end financial closing time of two days, managers are equipped with better knowledge of profit and loss levels across the group.
· By implementing Oracle’s packaged IFRS solution in its 12 affiliate companies, KT&G was able to standardize corporate accounting, asset management, capital management, tax and management accounting, standard cost pricing and budget management across these entities. KT&G was also able to meet IFRS requirements, as the Oracle system is designed to handle group-level consolidated reporting and disclosure requirements. The system can be modified to meet multi-language and multi-currency requirements of KT&G’s global operations.
Supporting Quotes
· “KT&G selected packaged Oracle IFRS solution as Oracle provides the most complete, open, and integrated financial system to meet our needs for IFRS,” said Jonggil Kim, Manager, Information Planning Team, KT&G. “The Oracle IFRS packaged solution allowed us to standardize group financial processes, which ensured we could meet international accounting standards while enhancing transparency across our business.”
· “Oracle implemented KT&G IFRS system with Oracle’s packaged IFRS solution to ensure integrated group accounting processes and simultaneous compliance with IFRS regulations. We see growing demands in Korea to comply with IFRS by 2011,” said Moon Won, Vice President of Application Sales, Oracle Korea. He added, “Oracle customers are confident in Oracle solutions, as Oracle has been addressing their requirements for many years and can offer complete solutions that can assist with the transition to IFRS compliance.”
Supporting Source
· Oracle E-Business Suite Release 12
· Oracle Database
· Oracle Real Application Clusters
· Oracle Hyperion Financial Management(HFM)
For more information contact:
YooJung Han
Oracle Korea
t:+822 2194 7758
m:+8210 9907 3669
e: [email protected]
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