Page 32 - Global Risk Advisory – Connected Thinking

Global Risk Advisory PCoE | Connected thinking A data-driven approach to your lease solution IFRS 16 implementation bringing the full power of the bench strength and expertise our global network and deliver the best possible service to make your project successful. 01 02 03 In my role as your VEON Global Lead Client Service Partner, it is my priority every time we work with VEON to support our Deloitte team to bring the full power of the bench strength and expertise our global network and deliver the best possible service to make your project successful. Your IFRS 16 implementation is no different. Great teams do extraordinary things. We see this at VEON and we see this at Deloitte. You are driven by what you are most passionate about – pioneering, innovating and creating services that enable your customers to live richer lives. We understand your passion. Making an impact that matters to our customers – like you – is what makes us excited about coming to work every day. We believe that what we can do for you on this project is how we will make an impact for you. We look forward to continuing our work together. Stephen Ward Global Lead Client Services Partner VEON 32 Executive summary We will share our insights and lessons learned on what works best in which environments, including your new Oracle cloud. A number of the other IFRS 16 implementations we are supporting are already in the software tool implementation stage – we will share real-time lessons learned with you as we go. This means when the time comes for us to help you shortlist vendors and make this important decision, you can expect honest, pragmatic advice on your options that work best for you. Bench strength and expertise to deliver One of your biggest challenges is capturing complete, accurate data. The approach to support this phase of the project needs to align with your business and give you confidence that the data gathering and validation activities are thorough and complete, in order to minimise surprises from your internal and external auditors. Our governance structure for the project mirrors yours. Since the data gathering, validation and storage will happen locally at each OpCo, we are proposing a highly decentralised team. We have appointed HQ representatives at each OpCo location to oversee the work on the ground. Each of these leads are senior Deloitte team members and many have strong ties to the VEON organisation, having delivered a number of projects across your OpCos. Our core HQ team, based out of Amsterdam and close to your HQ will provide guidance and oversight to our local teams. We are proposing three highly VexilpjoeernienacneddBrensjoaumrcinesB–oeAlhnothuotn–ytMoaleaalsdtéo,uArnHeQtte Program Management Office (PMO) in the Netherlands. Anthony is a recognised subject matter expert when it comes to IFRS 16 implementations – he is one of our people that really knows data. This structure helps us to deliver consistent, quality results and sets the right process at the OpCo level to support future phases of work. As you know, VEON is a global priority client and we have a dedicated senior executive team in place to support you. Aida Demneri, our VEON lead business partner and Stephen Ward, our global VEON lead client service partner will support our engagement team. Aida has overall accountability for our Deloitte team. She will work closely with Anthony, Stephen and with you to understand your needs and priorities, assign our best and right talent to work with you, monitor the service we are providing and be your senior executive point of escalation if and when you need it. For you, this means decisions are made locally and in real time, escalation is quick and communication is easy. Deloitte and VEON: A successful partnership Deloitte and VEON have delivered many successful projects together. This includes recent work to establish a central contract database for both your HQ and 12 OpCos. Our work gives us great insight into different parts of your global organisation, your working style, your culture, your values and what you expect in terms of quality and service. Working with a partner that knows how to work with you and brings the level of experience we have will make this project so much easier. B. Inclusion of a statement highlighting the benefit to VEON of engaging the selected firm in this type of engagement VEON is well-equipped to handle IFRS 16 accounting. You have a strong team at HQ that understands the requirements and implications for your balance sheet. You also recognize the challenges of capturing complete, accurate data, addressing existing system implications and implementing new software. For a large, international and highly decentralised company like VEON, this means a lot of work to get ready. You need a partner with the right experience, approach, capacity and global reach to help you get the work done. We are that partner. From our team you can expect: • a logical, technology and data-driven approach to achieve better results, faster • honest, pragmatic advice on a software solution that works best for you • expertise and bench strength – here in the Netherlands and on the ground in each of your operating locations – to get you ready to meet your requirements and deliver value along the way. Solid data for solid accounting choices This project is about much more than accounting for you. What is also important is that you have the right support to capture your data – and handle the volume, complexity, location and quality – in a way that is logical, efficient and thorough. While our team includes experts in the accounting requirements of IFRS 16, our team also understands data – and the practical challenges of identifying, extracting and storing the data which is needed to perform the accounting calculations required by IFRS 16. If the data is not right, then the accounting will not be right either. This is a seamless combination on our team. Based on our understanding of the work that needs to be done with respect to your data, we have chosen four specific IFRS 16 Deloitte tools to help us streamline and accelerate our work – and yours – in the data gathering phase of our approach. These tools include: • an innovative IFRS 16 data analytics tool to identify lease related journal entries that lead us towards the lease agreements. We have an IFRS 16 data dictionary included in our IFRS 16 data analytics tool, which expedites an effective search for lease entries outside the expected account lines • Deloitte Relativity, our automated data abstraction tool. Once the lease agreements have been collected, Deloitte Relativity will, applying OCR, extract features of the lease contracts and categorize them in order to quickly abstract data. This tool significantly minimises manual work and helps us to quickly finalise the audit trail • our IFRS 16 data gathering tool, which we use to capture master data for all new leases that are created after we start the data gathering process • we have added a specific IFRS 16 workflow tool to our central repository which can be easily set up for multiple locations, while still maintaining local access only for the local lease agreements Honest advice on what works best for you When it comes to your software solution, you have been clear about your needs. The solution needs to be easy to use, easy to implement, cost-efficient and practical to maintain, complement your existing systems and processes and support your decentralised operating structure. While we have great in-house software solutions at Deloitte that meet these criteria, we also know that our clients expect an independent view of what works best. As the leader in IFRS 16 implementations, we work with all the great software tools on the market and know it is not a one-size-fits-all answer. 2 A true passion to see VEON succeed Efficient. Accurate. High quality. And tailored to your specific needs. We are here to help you get it done. 3 A data-driven approach to your lease solution Request for Proposal IFRS 16 solution & lease data capturing 27 November 2017