Accenture Helps TNK-BP Deliver Quarterly Financial Statements in Record Time Through Accounting Transformation Project
MOSCOW; Aug. 31, 2005 – Accenture has helped TNK-BP, Russia’s second largest oil company, redefine its group accounting processes and applications, enabling the company to reduce the preparation of group financial statements by 45 business days and submit draft group accounts for its second fiscal quarter to shareholders just 10 business days after the end of its reporting period.
This is the first time that a Russian or Ukrainian oil and gas company of TNK-BP’s size has prepared its consolidated group financial statements — which comply with Russian and Ukrainian tax law and Accounting Standards, International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US GAAP) — within such a short timeframe.
The 18-month implementation was a large-scale effort that included customizing financial systems and interfaces to enable the transformation of a range of business processes, including accounting and management reporting, as well as linking hundreds of legal entities across Russia and the Ukraine into a new central financial consolidation system. The geographic scale of the implementation was also broad, involving the coordination of activities in regional accounting centers from Kiev to Eastern Siberia.
In addition to modifying existing financial systems and installing new software applications to improve the automation and transparency of accounting information, Accenture worked with TNK-BP to transform its finance and accounting workforce capabilities. More than 2,000 accounting professionals were trained to use the new financial processes. In addition, many of TNK-BP’s accounting professionals are now IFRS (International Financial Reporting Standards) certified.
“The Accounting Transformation Programme supports TNK-BP’s growth strategy and will provide greater financial transparency for all of TNK-BP’s stakeholders,” said John Downie, a partner in Accenture’s global Energy practice. “The new processes, applications, and employee development program were designed to enable TNK-BP to reinforce its leadership position in the energy industry.”
The transformation journey undertaken by TNK-BP is expected to be followed by other large industrial companies in the future to further support the adoption of IFRS, add shareholder value and create greater transparency, leading to lower debt and reduced costs.
TNK-BP is a major Russian vertically integrated oil company, established in September 2003 as a result of the merger of Russian companies TNK (Tyumen Oil Co.) and SIDANCO with the majority of BP’s Russian oil assets.
The company is 50% owned by BP and 50% by a group of prominent Russian investors: Alfa Group, Access Industries and Renova (AAR). The shareholders of TNK-BP also own 50% of Slavneft. This interest will eventually be integrated into TNK-BP.
TNK-BP is headquartered in Moscow and is Russia’s second largest oil company. The company employs about 100,000 people and operates in nearly all of Russia’s major hydrocarbon regions. In 2004, average crude oil production totaled 1.44 million barrels per day (bpd), or approximately 72 million tons per year.
TNK-BP operates six refineries in Russia and Ukraine, and markets products through 2,100 retail service stations operating under TNK and BP brands. Through its retail network, TNK-BP is among the market leaders in petroleum product sales in European Russia, including Moscow, and is the market leader in Ukraine.
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 115,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. Its home page is www.accenture.com.
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