- ASC 815 Disclosure
- ASC 820 Disclosure
- GL Reporting & Reconciliation
- Other Features
RPM is an enterprise platform that delivers key value by extracting, analyzing and presenting all critical data and information for today’s Accounting and Disclosure Reporting requirements. The RPM suite of applications delivers exceptional value for the Utility and Energy industry.
RPM can be instrumental in meeting current industry requirements including comprehensive business continuity planning and strict adherence to legal and compliance standards. This includes detailed and ready access to accurate financial reporting amid a growing regulatory and business environment including:
- Calculation of the fair value of assets – including those required under ASC 815 and ASC 820
- Preparing accounting and financial reports (P&L) for e.g. FAS161, FAS133, FAS157, etc.
- Abiding by current SEC protocols
- Numerous Security and Audit requirements
Current Business Challenges:
RPM accomplishes the above by directly addressing the most challenging obstacles faced by businesses today including:
- Valuing market prices of tangible and non-tangible assets of a firm
- Manually processing data and reporting it
- Minimal data transparency on how calculations are derived
- Multiple data sources with different sets of filters
- Several internal accounting teams with different procedural processes
- Limited security on recorded data
The RPM Solution:
RPM is a confluence of data, rules and reporting layers that provides process automation for SEC disclosure and back office reporting requirements for the energy industry. HOC addresses these challenges with RPM delivering an infrastructure that is efficient, cost effective, and stands up to both internal and external audit. By its design, RPM is versatile enough to accommodate numerous changes in processes and procedures. Key features of the RPM platform include:
- Consolidation of data into the RPM database from disparate data environments
- Generation of Journal Entry reports using in-house accounting systems
- Template-based reporting to replicate current formats
- Automate all manual SEC Disclosure reporting processes
- Auditable, SOX-compliant platform with friendly user interface and the ability to secure prior data after the accounting period is closed
- Ability to add, manage and report manually adjusted records
- Removal of data redundancy
- Automatic data reconciliation in every process for overall transparency
- Users can alter business rules with changes in processes with minimal support
- Source data can only be changed by one user in any instance
ASC 815 (Position and Performance Disclosure)
Fully functional ASC 815 reporting including:
- Quarterly Balance Sheet, which is a summary of the Current and Non-Current Asset and Liability positions for Derivatives
- Quarterly and Year to Date (YTD) Income Statement (Hedge and Non-Hedge), which is a summary of:
- Derivatives Designated as Hedging and Non-Hedging Instruments
- Gain (Loss) Recognized in Other Comprehensive Income (OCI)
- Derivatives in Cash Flow Hedging Relationships
- Gain (Loss) Recognized in Income on Derivative
- Normal Purchase Normal Sale (NPNS) Designation
- Quarterly Roll Forward of OCI
- A Roll Forward report captures the changes in net positions and fair values across various accounts, accounting classes, net asset/liability buckets or fair value levels.
- The powerful template-based reporting in RPM allows for capturing prior quarter and year end balances and using those values to report suitable roll forward across subsequent quarters.
- The innovative Master Data Repository framework in RPM enables fully automated roll forward reporting with minimal user intervention.
ASC 820 (Fair Value measurement Disclosure)
Fair value continues to be an important measurement basis in financial reporting. The ASC 820 Disclosure summarizes the aggregated net Asset and Liability positions across various Fair Value Levels. The correct Fair Value Level Determination is essential in this disclosure, since there are various factors which determine the derivation of fair value. RPM provides a flexible framework to define rules and business logic to determine the fair value levels for transactions.
The disclosure also summarizes the Fair Value measurements using significant unobservable inputs (Level 3) on a quarterly and YTD basis. A quarterly roll forward of the Level 3 Purchases, Sales and Settlements provides a summary of the net unobservable positions across income statement accounts and accounting class. Finally, the report details the Level 3 transfers (IN and OUT) across subsequent quarters.
General Ledger Unrealized Detail and Summary Report
The robust and powerful template-based reporting framework in RPM allows for the creation of feature-rich Excel reports. This also enables RPM to create output in any custom format required by general ledger accounting systems, allowing journal entries to be uploaded automatically with minimal user interaction.
The Master Reconciliation report is the master dashboard that visualizes, for a given accounting month or quarter, the flow of accounting data from the ETRM system right up to the general ledger account and SEC Disclosure report. This provides a powerful reconciliation tool and allows for a detailed analysis of the effect of various exclusions and manual adjustments. The Master Reconciliation removes the need to reconcile individual accounting processes.
Manual Adjustments - Data Entry, Maintenance and Reporting
RPM provides a powerful Manual Adjustments module which enables the users to enter and store various accounting and non-accounting manual entries in the system and use the same for SEC Disclosure and JE reporting. The Manual data entry feature is an extension to the Data Interface Management (DIM) framework that allows users to insert data into the data source tables manually through an inbuilt user interface. The data entered in the manual adjustments is fully audited. The reporting engine in RPM is designed to automatically roll in and roll out the manual adjustments in the accounting data depending on the current accounting month or quarter.