New Accounting Procedures Required as US and European
Standards Move Toward Harmonization
SUNNYVALE, Calif., June 30, 2003 - Hyperion (Nasdaq: HYSL), the leader in Business Performance Management software, announced that its applications will assist companies to quickly and efficiently comply with new reporting standards outlined earlier this month by the US Financial Accounting Standards Board (FASB). These efforts and others - including the Sarbanes-Oxley act in the United States and IFRS 2005 in Europe - are designed to bring tighter regulation and control to corporate accounting, and will require companies to employ new financial procedures to meet these tighter standards.
In addition to announcing its intent to adopt key provisions of the International Accounting Standards/International Financial Reporting Standards (IAS/IFRS), the FASB outlined its plans to make additional future changes to remove material differences between U.S. Generally Accepted Accounting Principles (US-GAAP) and IAS/IFRS. These efforts are designed to improve the quality of financial results in the US, eliminate "loopholes," and move closer to a single worldwide accounting standard consistent with IFRS 2005.
Hyperion Supports International Requirements
Hyperion's Business Performance Management solutions allow companies to quickly collect and analyse their financial results, drill into the detailed management information behind the top-level results and provide a complete audit trail from systems of record to reported results. As a result, it is much easier for them to meet international compliance standards - including more stringent reporting requirements and shorter reporting windows.
"Enron delivered a punch to the solar plexus of American financial reporting because it came as a huge shock. It woke up everybody worldwide to corporate governance," said Sir David Tweedie, chairman of the International Accounting Standards Board (IASB), which is working in lock-step with the FASB to develop shared accounting practices. "Our aim is clear. It is set out in our constitution. We have to try and come up with one single set of high quality global standards, so it does not matter whether a transaction takes place in Sydney or Seattle or Singapore or Seoul, they will all be accounted for the same way."
Sir David Tweedie will be the featured speaker at a Webcast hosted by Hyperion and Business Finance Magazine on Tuesday, July 1 at 12:00 EDT. For more information, visit: http://www.bfmag.com/webcasts/register.html?wc=2&referrer=na....
Supporting the Move Toward IAS/IFRS
Much like Sarbanes-Oxley, IFRS 2005 is impacting European companies by creating new guidelines for financial reporting. As a result, US companies will likely be subject to changes in the coming months. These changes include:
· Fair-value principles instead of historical cost. US publicly traded companies will see an increasing requirement for fair-value measurement of assets and liabilities. What in the past was a mechanical amortization process handled by transactional systems, will now become an analytic process better handled by Business Performance Management applications.
· Voluntary changes in accounting principles: Current U.S. GAAP generally requires a cumulative adjustment in the year of a voluntary change, but IFRS requires a retrospective application of voluntary changes. As a result, all prior periods should be restated as if the newly adopted accounting policy had always been used.
Hyperion customers can comply with changes like these quickly and easily.
· Hyperion customers can easily handle the multi-period retrospective changes and restatements, without needing to reopen the general ledger. Powerful, multi-dimensional financial consolidation and reporting applications will be needed as never before to track these retrospective adjustments.
· Hyperion makes it easier for customers to report faster and more frequently, and with a greater level of detail. Hyperion Financial Management has built-in features for segment reporting, eliminations, foreign currency and minority interest consolidations, to give customers the controls and reporting capabilities needed.
· Customers can calculate new recognition and measurement requirements using Hyperion Financial Management's Custom Dimensions, Line Item Detail and Journals capabilities. Dimensional and business rule flexibility, along with an extensive audit trail, make meeting complex requirements straightforward.
"Hyperion's customer base is truly global. With an almost equal distribution of revenue from US and European clients - 60 percent US and 40 percent outside the US - our solutions must always serve the diverse needs of the world's companies," said Rich Clayton, vice president of product marketing for Hyperion. "We have always looked at corporate compliance as a global requirement - not just as a US activity. We have provided IAS compliance for more than 10 years, so while these standards may just now be impacting the US, they aren't new to Hyperion. We're ready, and we will make sure our customers are as well."
Hyperion is the global leader in Business Performance Management software that enables companies to translate strategies into plans, monitor execution and provide insight to improve financial and operational performance. More than 6,000 customers worldwide use Hyperion's Business Performance Management family of packaged and tailored applications and its leading business intelligence platform. Hyperion has a network of more than 330 partners to provide innovative and specialized Business Performance Management solutions and services.
Headquartered in Sunnyvale, California, Hyperion generated annual revenues of $492 million in fiscal 2002. The company employs more than 2,100 people in 20 countries and is represented in 16 additional countries through distributor relationships. Hyperion is traded under the Nasdaq symbol HYSL. For more information, please visit www.hyperion.com/uk, e-mail firstname.lastname@example.org or call 01784 228015.
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