Organization and method of assembly management report using a definition of EBITDA indicator (Earnings before interest and tax, amortization and depreciation) are considered on the practical example of Kherson river port's activity. The process of constructing a multidimensional model, that is necessary for determining EBITDA of integrated accounting using the program "1C: Accounting for Ukraine", and implementation of the model using PivotTable in MS Excel are represented. The range of possibilities to implement the process named “Data Mining” of the models is demonstrated. The management report, formed on the basis of multidimensional data model is used to determine the profitability of the business units, business processes and enterprises considering the organizational architecture of the entity.
The process of the evolutionary development of accounting and reporting in Ukraine has a long history of changes and qualitative transformations, first of all, resulting from the wish to timely provide the various groups of interested users with the reliable data. The accounting and financial reporting is considered by lots of people as a formally obligatory phenomenon approved and regulated by the state legislation. Actually, it is a fundamental basis of the de facto existing accounting and analytical system able to perform the primary functions of a business management.
The current realia of a business management require expending the boundaries of the existing accounting and reporting systems be means of including the tasks of planning, control and performance measurement regarding the activities, business processes, business units, the company as a whole, and elaborating the strategy of operation and development. Additional "non-standard" for the accounting requests from the information users and different vision of the functional tasks’ development essentially enforces the formation of various types of accounting (financial, fiscal, management, strategic, etc.) and the methods of data interpretation in order to define the financial indicators such as (EBIT, EBITDA, ROA, TIER etc). One of the priority trends of the accounting development is creating the accounting and analytical system of a company that can provide all the necessary information to every level of management on a real-time basis. In this paper we present a variant of an integrated accounting data model on a company incomes and expenditures allowing you to create the management report items based on the indicator computation EBITDA, and which is in practice used at Kherson river port. 2
New approaches to shaping the views of the category "accounting" are based on the theory of the system: any system can be represented as a set of the inter-related and linked elements forming a certain unity and value. In addition, it is necessary to emphasize the impact of the system theory on understanding the accounting system as a multidimensional and complex informational space. Determination of the core system features is an important factor allowing seeing the accounting elements in a single accounting system. These features include: the ability to assess data to solve problems in the same monetary units; matching the economic resource cycle model, their origin, and business processes represented in the general Chart of accounts; actuality and retrospectiveness of the data obtained within the framework of accounting; legal (documentary) proofs of business transactions. The system approach to formation of the indicators to draw the various forms of reporting (financial, statistical, fiscal, management) makes it possible to assert of the establishment and operation of an integrated accounting system.
In recent years, the problem of integration of the accounting information has
become particularly relevant for the scientists. A lot of them raise the issue of the
necessity to get the information that allows separating the costs not only for the
reproducing process as a whole, but also for all types of the core and service
processes which is important to identify the most costly processes, develop measures
to reduce the costs for their implementation [
The integrated accounting is the main element of the accounting and analytical business management and the basis for the accounting system functioning that allows you to transform information in order to draw various forms of reporting and identifying the indicators characterizing the degree of the approved plans implementation.
Analysis of the possibilities of the special-purpose programs of various decision support systems (DSS) available on the Ukrainian market confirms that the software products meet the requirements put forward by the modern company executives and enable to simulate any business processes with due consideration of the external and internal factors, and can automatically calculate the economically sound company’s performance indicators. The main criteria for choosing the software for the Ukrainian companies is the minimum price, usability, compatibility with accounting programs usually on the 1C platform, and preferably not involving any IT experts.
Let us give consideration to the real-life experience of the Kherson river port on solving the tasks mentioned.
Evaluation of the performance of the Kherson river port is based on the EBITDA
indicator, which, according to the foreign authors, is the key to determine the
profitability, and is used all around the world [
The indicator EBITDA (Earnings before interest and tax, amortization and
depreciation) means Earnings before interest, taxes, depreciation and amortization [
EBITDA = NР + ITE – SIT + IE – EI +АA – DA, (1) where NР - net profit, ITE - income tax expense, SIT - satisfied income tax, IE interest expenses, EI - earned interest, АA - amortization of assets, DA - depreciation of assets.
Kherson river port maintains the financial accounting and prepares financial
statements pursuant to the national Regulations (standards) of accounting (NP(S)A)
and the International Financial Reporting Standards (IFRS) in parallel, which meets
the requirements of the Law of Ukraine on Accounting and Financial Reporting [
The process of accounting and financial reporting at the company in question is automated using "1C: Accounting for Ukraine". Necessary details of the accounting data in "1C Accounting for Ukraine" as the raw data to determine the resulting indicator EBITDA is achieved by constructing a hierarchy of the analytical accounting levels through the structured directories for storing objects that can be hierarchically classified according to selected features. Important for the determination of EBITDA and preparation of management reports is the organizational structure, under which one should understand a complex of the typical elements of accounting in general and some of its parts in particular. Given the category features and integrated accounting, to build a multidimensional data model of EBITDA determination, a basic scheme of the integrated accounting of income and expenses is used at the company in question on the "asterisk" principle (table 1).
Construction of the model takes into account the complex organizational architecture of the company as well as the details of its activity. The point at issue is that the business units of the company are strongly interrelated and also perform the maintenance functions of the company in general, therefore, it is important to separate the data relating to the internal business volume to prevent any result misrepresentation.
The process of drawing a management report based on EBITDA for the Kherson
river port is realized in the pivot Excel tables, "... one of the most convenient means
applying the OLAP technology, the main purpose of which is to process information
for analyzing and decision making. The advantage of OLAP is to create queries using
flexible ad hoc approaches without involvement of the IT experts. The pivot tables
provide using of the multidimensional classifications, detail and integration of the
data, identifying trends, patterns, forecasting, analysis, thus representing a weighty
tool for operation of the accounting and analytical system of a multi-segment
company in the real-time mode" [
Formation of items of the management statements based on the multidimensional data model of the integrated accounting and the algorithm for determining the EBITDA indicator in the pivot Excel tables are shown in Table 2,3.
A management report implemented in the pivot tables represents the data as to several informational slices - forming a subset of a multidimensional amount of data corresponding to one or more elements of measurement. For example, selecting a subset of values of the company’s fixed costs over certain time, as a structural unit in general, and those of a business unit in particular, highlighting the internal business volume (fig. 1).
The model can not only be used for determining EBITDA and making a management reporting form, but can be a basis for implementation of the process of " Data Mining". Therewith, the spectrum of the problem solving by methods of Data Mining can be broad enough, from the sales revenue classification by types and business units to feasibility of a business unit in view of the internal business volume (fig. 2).
Analysis of practical experience in the construction and operation of management accounting at the company in question, the reporting procedure for management and the algorithm for determining EBITDA are indicative of using the accounting system for the absorption - costing system which is focused on the owners (investors) requests regarding the effectiveness of the funds invested.
Organization of accounting using “1C Accounting for Ukraine" allows representing accounting as an information system in the form of a multidimensional data model to achieve a number of results, namely the creation of a single integrated accounting system, which meets both, "standard and non-standard" user requests; bridges the gap between the formation of actual financial and management accounting data; summarizes data for the preparation of management reporting forms with a given level of detail.
Use of the Pivot Tables in MS Excel provide for the appearance of new aspects of actual data usage, introduction of new connections between the data of financial and management accounting, which in turn does not lead to reconstruction of the whole accounting model and accounting database in general. In the pivot tables there are tools of data analysis allowing for the intellectual assessment, that is to summarize, group, delete unnecessary data, or increase the reliability by establishing links and accuracy of calculations. Good design of the tables can significantly facilitate the laborious process of making the management reporting forms and analyzing the company’s activities.