About Mercury Properties LLP
Mercury Properties LLP is one of the leading investment companies in the field of commercial real estate in Kazakhstan.
The Company’s portfolio includes more than 30 assets, which include business centers, shopping and entertainment centers, logistics complexes and warehouse facilities in major cities of Kazakhstan. The Company's investment strategy focuses on long-term large assets in the sectors of commercial real estate and logistics infrastructure.
The holding structure includes more than 40 enterprises, which use the information systems on the 1C:Enterprise platform (various versions) for accounting.
Project goals
Successful implementation of the project’s first stage was one of the main reasons for continuing cooperation with 1C-Rating and the implementation of the second stage. Development of the following system objects was determined for the second phase:
- FR-3. Cash Flow Statement (direct method)
- FR-4. Statement of Changes in Equity
- Adjusting Table for Consolidated Financial Cash Flow Statement
- Adjusting Table for Individual Financial Reporting by Joint Ventures and Associate Companies
- Summary Report by Investments in the Share Interest
Solution description
The financial reporting of the enterprise includes mandatory generating of main reporting forms: Statement of Enterprise’s Financial Position (Balance sheet), Profit and Loss Statement, Cash Flow Statement and Statement of Changes in Equity. Only a part of the main forms was developed within the first stage of the project, the rest of the reporting was subject to automation at the second stage. During the implementation, this problem was solved thanks to the development of the following types of reports: FR-3 - Cash Flow Statement (direct method) and FR-4 - Statement of Changes in Equity. Adjusting Table for CFR for FR-3 allows us to see both the cash flow data of the subsidiaries and the parent company separately, and the elimination, transformational adjustments based on the audit results, as well as the final consolidated report.
Project results
Mercury Properties LLP has a large number of subsidiaries and affiliates included in the consolidation perimeter using the equity method, which was a prerequisite for automating reporting for associates and joint ventures. In the process of implementing the second stage, the adjusting table with the needed structure was developed, which is filled in by each associated or jointly controlled enterprise. Based on the data obtained when completing the individual reporting and adjusting table for the associated enterprises and joint ventures, a summary report by investments in the share interest “Investments in AE and JV” was formed. This report allows you to explain the movement of investments by investment objects, calculate the number of investment adjustments and unrecognized losses. Also, as part of the implementation of the second stage, a document “Consolidated Adjustments” was developed with the type of operation “Share interest”, which is intended to reflect equity participation in the profit/loss and balance sheet when consolidating financial statements.
