1. Objective and Scope

RSB category is managed by and is under the responsibility of Corporate and Business Controlling teams. Purpose of this category is to restate historical data (Y-1 / source ACTUAL2 category) with current (Y) structure and exchange rates.

Restated Y-1 data is used for internal Business performance analysis as well as for external publication.


Scope of restated data:

  • quarterly cumulative data (no monthly restatement)

  • P&L: Sales up to Underlying EBIT (including Equity results)

  • Capital Employed ( WC + Assets + Investments)



Planning:

  1. Category initialized in July Y Example: in July 2022 opening of RSB 2022/2023 (restatement of 2022 Actuals @ 2023 ExcR and Structure)
  2. Business structure changes expected for Y+1 defined before Christmas - BFC set up in 2 waves Q4 Y and end Jan Y+1
  3. Q1 Y+1 (February at the latest to be ready before Q1 Y+1 results): technical checks, input of structure effects (through top entries or using dedicated consolidation rules. no usage of packages)
  4. updated all during Y+1 year each time a structure effect requires a restatement



Changes in the structure are reported by each enterprise/zone using specific flows:

  • RS00 Historical data (Y-1 Actual2 figures): technically ACTUAL2 Y-1 is preloaded in RS00 by Activity 1 (P&L + A/R) and Activity 2 (Capital Employed excluding A/R)
  • RS01 Acquisition (perimeter inflow: companies entering in conso scope as IG, MEQ or IP / Business acquired)
  • RS98 Disposal (perimeter outflow: companies or Business divested)
  • RS50 Reclassifications (account reclassifications i.e. change of depreciation in inventories to fixed costs - subject to approval from Corp. Controlling teams as it may impact external communication and annual report issued in Y-1)
  • RS6x Business transfers intra SYENSQO
    • RS61 - Inter Markets (Intra BU) Transfers
    • RS62 - Inter BU (Intra GBU) Transfers
    • RS63 - Inter GBU's Transfers
  • RS7x Organizational Syensqo Changes (change in accounting rules i.e. IFRS16 implementation - subject to approval from Corp. Controlling teams as it may impact external communication made in Y-1)
  • RS80 Conversion effect  (automatically calculated in RSB through dedicated Consolidation rules using Y-1 and Y Exchange Rates tables)
  • RS99 Restated = (Sum of the flows listed above)
  • NB are excluded from structure effects : correction of mistakes in Y-1 Actuals, shutdown of a product line, change of contract terms, discontinued operations (already recorded in Y-1 Actuals)



RSB category has its own category scenario "RSB", scope "RSBSYENSQO" and exch. rates version "PREV".

  • RSB scope includes the « ACTUAL2 » legal entities + fictive Business entities (GEST-xxx or SCO-xxx – used to record the structure changes).
  • RSB is a multi-period category with one single data entry period YYYY.01


2. RSB Reporting Setup

2.1 Reporting setup - Reporting Organizer


The opening of RSB phase should occur in July.

To create a new Reporting ID for the period, select the one of the previous year in the field Select Reporting IDs.




Then in Reporting Organizer module Open it and Save As.




In the General tab defines the general properties of the reporting ID.

Enter the following information:

  • Category - RSB
  • Data entry period - YYYY.01
  • Short & Long description - RSB SYENSQO YY/YY+1

The Definition tab will define the associated category scenario and the start and end dates for the reporting.

Enter the following information:

  • Version of category scenario: latest version to be selected
  • Start & End Date: Adjust start (July Y) and end date (January Y+2)


The Package tab defines the data entry settings applicable to packages:

  • Windows and Internet folder: LRSB
  • Set-of controls: LRSB 
  • Control level to be reached: RSB
  • Blocking - Flag the option Blocking
  • Apply to central manual journal entries - it MUST NOT be flagged
  • Opening balance data : not applicable (this is through the dedicated RS00 flow that Y-1 ACTUAL2 historical data will be preloaded)


The Restrictions tab defines the data entry restrictions which are applied when the data is entered.


  • Read-only flows: RS00 is the opening balance flow automatically generated (Y-1 Actual2 / F99AJ) 


  • Data entry restrictions: SOCIALRSB



In the Operation tab defines the settings associated with packages publication. 

In the Deadline it has to be informed the deadline for package's publication. It has not such an importance as, in principle, there no packages and if any it will be completed centrally by Corporate Controlling.



3. RSB initialization (July)

3.1 RSB consolidation scope

There is only one scope per year - RSBSYENSQO YYYY.12 - and it should be aligned with December ACTUAL2 scope of corresponding year of restatement (example: RSB 2022/2023 => aligned with 2022.12 ACTUAL2 scope).

BFC Admin starts working in the RSB YY/YY+1 phase in July YY and the RSBSYENSQO YYYY scope should be created by a save as of ACTUAL2 YYYY.06 (most recent scope available in BFC_PROD_SCO). The following principles have to be applied:

1) RSB scope includes companies conso at both opening and closing  in ACTUAL2 scope;

2) RSB scope includes companies consolidated at opening even if sold or merged during the year in ACTUAL2 scope;

3) RSB scope includes companies consolidated at closing even if non conso at opening (ex newco stardust US) in ACTUAL2 scope ;

4) RSB scope excludes companies non conso at opening and non conso at closing in ACT2 scope.


Further updates from July to Dec YYYY will be limited to the replication (manually) of ACTUAL2 scope changes.


3.2 RSB set of rules

A new set of rules should be created every year - RSBSCOYY - to be associated to RSB Y/Y+1 conso.

The following subset of rules should be included and not changed as they are permanent rules applying to RSB phase every year:

  • 10-AN-RSBSCO - Generation of opening flow RS00 / different subsets for RSB 2022/2023 and 2023/2024 because of different conso variants (variant 2  or SC2 depending on periods) in ACTUAL2 Combined FS => this should not be needed anymore from RSB 2024/2025
  • 15-ST-RSBSCO  or SC - Calculation of sales (company level)
  • 18-EL-RSBSCO - Sales elimination
  • 40-TO-RSBSCO - Calculation and storage of Totals
  • 046-TXRSBSCO - Special rules for conversion


Only subset 13-RSBSCOYY should be created every year as it includes dedicated consolidation rules customized to manage automatically (when possible) some structure effects.

Examples: 

  • Business 100% internally transferred from A to B using flows RS61, RS62 or RS63.
  • External divestments: full company(ies) divested (share deals) or Business 100% sold - RS98

When creating the set of rules in July YY, this subset should be left empty and should be completed once Corporate Controlling has requested BFC Admin, usually in Q1 Y+1, to customize the conso rules for the scope changes effects.

See chapter  4.RSB consolidation rules update



3.3 RSB consolidation 

RSB YY/YY+1 consolidation should be created and run already in July YY to allow early technical checks (pre loading of ACTUAL2 balances into RSB through RS00).


To create RSB conso BFC Admin should do a save as of previous year conso RSB Variant 2.











In the General tab replace the data entry period to YYYY.01 and correct the long description.




In the Properties tab replace


  • scope by the new one RSBSYENSQO YYYY.12
  • set of rules by the new one RSBSCOYY 
  • conversion rates by PREV March YYYY+1
  • category scenario : check that the one selected with the "save as" from previous RSB is the last existing and correct one to be used



In the Opening balances tab:

  • NO opening balance data to be selected as this is through dedicated consolidation rule that RS00 flow "opening" will be generated (see chapter  3.2.RSB Set of rules)



In the Options tab, nothing to be done


In the Periods tab replace


  • conversion rates by PREV YYYY+1
  • scope by RSBSYENSQO YYYY.12



3.4 RSB monthly consolidation scheduling

RSB is used as Y-1 comparison with ACTUAL2 monthly reporting

  • Scheduling variant 2: once a day at 5 am / from Day 5 to Day20 (normal day considered, not working days)
  • Task duration to be updated every month to set corresponding dates for D5 and D20


Example for 2024 Actuals compared with RSB of 2023 year - January 2024 reporting done in February



3.5 RSB opening checks

Once RSB consolidation has been run, BFC Admin should check the alignment of flow RS00 with ACTUAL2 F99AJ (P&L) and F99 (BS):

  • Report GRSB-040 should be used to check P&L
  • Report GRSB-002 to check BS





In report GRSB-040 "P&L" - Flow Audit : Doc: Account - Row: Market/Entity - Col: RS00 vs Actual selection criteria should be completed as follows:


Data Source

  • Data Source: Consolidation data - Consolidated amount


Dimension Members

  • Account (aggregated): Filter CRR000-37 (REBITDA accounts in P&L)
  • Consolidation Currency: EUR
  • Contribution Level: TS
  • Partner 1: No member
  • Site: No member
  • Variant: 2
  • Reference period: YYYY.12 (or 06 or 09 or 03) to check RSB00 is aligned with F99AJ / YYYY.12 / ACTUAL2
  • Activity 1 (Itemized, total after): All members
  • Reporting Unit (Itemized, total after): All members
  • Category: ACTUAL2
  • Data entry period: YYYY.12 (or 06 or 09 or 03) to check RSB00 is aligned with F99AJ / YYYY.12 / ACTUAL2
  • Scope: SYENSQO
  • Column B Scope: RSBSYENSQO

















The last column - DELTA - must always be zero.







In report GRSB-002 "Balance Sheet" - Flow Audit : Doc: Account - Row: Market/Entity - Col: RS00 vs Actual selection criteria should be completed as follows:




Data Source

  • Data Source: Consolidation data - Consolidated amount


Dimension Members

  • Account: ST-STOCK
  • Consolidation Currency: EUR
  • Contribution Level: TS
  • Partner 1: All or no members
  • Variant: 2
  • Reference period: YYYY.03 (or 06 or 09 or 12) to check RSB00 is aligned with F99AJ / YYYY.03 / ACTUAL2
  • Activity 2 (Itemized, total after): All members
  • Reporting Unit (Itemized, total after): All members

Column A

  • Category: ACTUAL2
  • Data entry period: YYYY.03 (or 06 or 09 or 12) to check RSB00 is aligned with F99AJ / YYYY.03 / ACTUAL2
  • Scope: SOLVAY14


Column B

  • Scope: RSBSOL














The last column - DELTA - must always be zero.





4. RSB consolidation rules update / Example

In case a change in the structure can be managed by consolidation rules, it should be done this way rather than central journal entries.

For example, in July 2021 the group decided to create a new GBU (Global Business Unit) called Oil & Gas (OG) and to "transfer" 2 activities already reporting under Technology Solutions GBU (TS) to the new GBU. 

This decision didn't have a retroactive effect → In Actuals, TS activities remained in TS in the 1st Semester.

Activities (Activity1) no more to be used in GBU TS "Techno Solutions" from 7/2021:

TSPR - PROBAN 
TSSH - SODIUM HYPOPHOSPHOROUS

New activities (Activity1) to be used in O&G GBU from 7/2021:

OGPR - PROBAN 
OGSH - SODIUM HYPOPHOSPHOROUS 


In terms of RSB 20/21, it was necessary to transfer 2020 Q3 and Q4 P&L figures from TSXX to OGXX activities. 

  • This is the kind of structure update that can be easily managed by consolidation rules avoiding heavy manual top entries (line by line, partner by partner....).
  • Automation through consolidation rules keeps a restatement at company currency level (while top entry would be global in Euros introducing distortion effect in the calculation of conversion effect RS80)


  • 2 rules have been customized: 

RSB20-OG-PL1 - New GBU Oil &Gas 2020 P&L cum => Transfer cumulated 09.2020 & 12.2020 P&L figures from TSXX to OGXX activities. 

RSB20-OG-PL2 - New GBU Oil &Gas 2020 P&L S1 reset - 2 effects:

1) put back cumulated S1 (06.2020) in TSXX activities in both cumulated 09.2020 & 12.2020 P&L figures

2) remove cumulated S1 in OGXX activities (effect from the 1st rule) in both cumulated 09.2020 & 12.2020 P&L figures


Table A - Source data in RS00 (Actuals Y-1)



RSB20-OG-PL1 - New GBU Oil &Gas 2020 P&L cum 

In the selection tab, we specify what needs to be transferred: 

  • Activity1: TSPR + TSSH
  • Reporting Unit: All members (it is a transversal to all companies) 
  • Period: Filter containing both periods 09.2020 & 12.2020
  • Account: All accounts belonging to class R (P&L accounts)
  • Flows: RS00
  • Contribution level: TS 



In the processing tab, we specify how the transfer should be done: 

Row 1 - Flow

  • Flow RS63 (Inter GBU's transfers) should be used to decrease TSPR and TSSH account balances (RS00 - RS63 = RS99).
  • Factor =  -1 (to decrease)



Row 2 - Activity1

The activities to which account balances should be increased are the ones indicated in characteristic Market used in RSB transfer of MARK dimension.

  • Factor =  1 (to increase)


Row 3 & 4 - Activity partner 

In order to have correct internal/net sales figures, Activity partner should be reclassified as well.

  • Factor =  1 (to increase)













Below B table represents the effect of the 1st consolidation rule in flow RS63:


RSB20-OG-PL2 - New GBU Oil &Gas 2020 P&L S1 reset 

With the previous rule - RSB20-OG-PL1 - we have transferred 09.2020 & 12.2020 cumulated figures from TSXX to OGXX activities.

Since the decision to transfer TS activities to OG had no retroactive effect to Jan 1st  (TS remained in TS in 1st Semester), RSB should reflect the same and therefore we need, by a new conso rule:

  • to put cumulative 06.2020 back in TS on 09.2020 & 12.2020 cumulated figures 
  • to remove cumulative 06.2020 on OG on 09.2020 & 12.2020 cumulated figures 

 

In the selection tab, we specify what needs to be transferred:

  • Activiy1: TSPR + TSSH
  • Reporting Unit: All members (it is a transversal to all companies) 
  • Period: 06.2020
  • Account: All accounts belonging to class R (P&L accounts)
  • Flows: RS00
  • Contribution level: TS 

In the processing tab, we specify how the transfer should be done: 

Row 1 - Flow

  • Flow RS63 (Inter GBU's transfers) should be used to reintroduce S1 TSPR and TSSH account balances (RS00 - RS63 = RS99) in Q3 (2020.09).
  • Factor = 1 



Row 2 - Activity1

The activities to which account balances should be removed (OGxx) are the ones indicated in characteristic Market used in RSB transfer of MARK dimension.

  • Factor = - 1 




Row 3 & 4 - Activity partner 

In order to have correct internal/net sales figures, Activity partner should be reclassified as well: remove on OG.

  • Factor = - 1 


Row 5 - Flow

  • Flow RS63 (Inter GBU's transfers) should be used to reintroduce S1 TSPR and TSSH account balances (RS00 - RS63 = RS99) in Q4 (2020.12).
  • Factor = 1 




Row 6 - Activity1

The activities to which account balances should be removed (OGxx) are the ones indicated in characteristic Market used in RSB transfer of MARK dimension.

  • Factor = - 1 



Row 7 & 8 - Activity partner 

In order to have correct internal/net sales figures, Activity partner should be reclassified as well: remove on OG

  • Factor = - 1 


Below C table represents the effect of the 2nd consolidation rule in flow RS63:




Below D table (sum of A+B+C tables above) represents the final picture on RS99 (RS63 of the 2 conso rules + RS00):


END OF THE PROCEDURE