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Accurate accruals Assurance

  • 1.  Accurate accruals Assurance

    Posted May 12, 2020 03:11
    What all controls revenue assurance can build around accruals assurance.  What are the top risks and how the same can be mitigated through secondary controls.
    #BusinessAssurance

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    Sahasrangshu Pal Choudhury
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  • 2.  RE: Accurate accruals Assurance

    TM Forum Member
    Posted May 12, 2020 03:21
    My colleague @Gadi Solotorevsky may be able to assist here, as prime product manager in Amdocs' RevenueGuard offering for managing revenue assurance.​ See also here https://www.amdocs.com/amdocsone/consumer-experience-monetization/revenue-guard

    Hope it helps

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    Jonathan Goldberg
    Amdocs Management Limited
    Any opinions and statements made by me on this forum are purely personal, and do not necessarily reflect the position of the TM Forum or my employer.
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  • 3.  RE: Accurate accruals Assurance

    TM Forum Member
    Posted May 14, 2020 04:25
    You can find in the TM Forum documents, Revenue Assurance Solution GB941 Addendum E RA Coverage Model – Risk inventory and Measures Inventory. Relevant examples. We are now on the process of updating these documents, but I think that the actual version can give you a good starting point

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    Gadi Solotorevsky
    Amdocs Management Limited
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  • 4.  RE: Accurate accruals Assurance

    Posted Jan 04, 2021 09:05
    thank you for sharing

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    Mohit Verma
    TO BE VERIFIED
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  • 5.  RE: Accurate accruals Assurance

    TM Forum Member
    Posted Oct 19, 2020 09:30
    @ sahasrsngshu

    Below are a few risks in accrual accounting where you may consider creating RA secondary controls for accrual assurance

    1. Product or services that are sold on credit but the revenue is not received within a set period

     some example from telecom but not limited to:

      • prepaid mobile service loan product misused by the customer.
      • postpaid service rents and bundled subscription( like mobile handset) and payments in arrears or installments ( collection bad debts).
      • managed projects that involved multiple bundled products/equipment and the payments will be collected once the project is fully completed ( based on the contract signed) but the customer can start using some of the services before completion of the entire project.
    1. Income Tax paid before collecting the revenue and any mistakes in the accounting process or delay in collecting revenue may expose the company to revenue risk.
    2. If accrued receivables are treated as income/revenue and the accountant missed to enter it in the income statement.
    3. If the accountants missed to adjust the accrued receivables in the balance sheet as debits and also if he/she missed removing such debit entries once the amount is paid by the customer from the balance sheet.
    4. Considering the complexity of accrual-based accounting there is a possibility of creating mistakes in financial statements and such inaccuracies/ weak points/ loopholes in this accounting methods can impact financial reporting and the company's credibility.
    ​Hope this helps you.

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    Sreehari Nampoothiry
    Dhivehi Raajjeyge Gulhun Plc
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  • 6.  RE: Accurate accruals Assurance

    TM Forum Member
    Posted Dec 20, 2020 22:24

    Fist of all, you need to define what kind of risks in context of "accruals assurance" you have to focus on, then you have to create set of controls Primary&Secondary, Business rules as well to prevent those risk to be in place, or to minimize it's impact in case if these controls not working well.
    GB941D, E & B will give you some insight.

    Regards|| Abdulrahman Eldabak, Business Assurance Specialist, adabak@makman.co



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    Abdulrahman Eldabak
    Makman Technology Consulting
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  • 7.  RE: Accurate accruals Assurance

    Posted Dec 21, 2020 09:42

    With me, the Tops area need accruals are:

    -  By Subscriber: Sub's expiry, Subs's bonus balance, Core balance movement

    -  By Recharge: Voucher/airtime movement

    -  By Content provider: accruals  revenue by CP/ by period. 



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    giang bui
    Vietnamobile
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  • 8.  RE: Accurate accruals Assurance

    Posted Dec 21, 2020 09:42

    It is difficult exactly to show, from my experience, you can review and analysis  business case base on your company services. From It's result you can see what you need accrual Revenue which need put control revenue.  For example, i separate with 3 top categories  ( all of most my company subs are prepaid)

    - Subscriber balance: expiry , bonus movement, core movement

    - Recharge : Voucher/electrical voucher

    - Content provider: Accrual revenue by CP/ by period 



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    giang bui
    Vietnamobile
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  • 9.  RE: Accurate accruals Assurance

    Posted Jan 04, 2021 09:05
    thank you for sharing

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    Mohit Verma
    TO BE VERIFIED
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