Strengthening Intercompany Financing and Treasury Compliance Through Data Analytics (Research Square)

Summary

• Shell International Finance B.V.'s 2022–2024 reports supply 48 currency rows from twelve maturity tables, alongside 748 SOFR effective-date observations.p.2
• All 84 maturity-column and grand-total checks reconcile exactly, with a maximum row-bucket residual of US$1,000.p.2
• Comparing report vintages identifies 20 changed maturity-bucket cells and four changed currency-row totals while aggregate totals remain unchanged.p.2
• Face-value debt falls from $51.157 billion in 2022 to $31.898 billion in 2024, a reduction of 37.65%.p.8
• The share of face-value debt due within one year rises from 6.58% to 15.97%.p.8
• On a US$100 million illustrative notional, annual simple ACT/360 interest is US$1.670 million, US$5.076 million and US$5.228 million.p.2
• An independent 90-day calculation gives 5.3528429357%, against the official value of 5.35284%.p.11

Key insights

1. Reconciled totals can coexist with a substantial difference in currency classification across reporting vintages.p.14
2. Changing the day-count denominator to 365 reduces 2024 interest by US$71,619, or 1.37%.p.2
3. Giving only effective-date observations one day reduces 2024 interest by US$1,652,861 (31.61%).p.11
4. The reduction in the issuing entity's debt reflects a transfer to another group financing entity, not an equivalent fall in group funding.p.8
5. Official reference rates produce different interest amounts when calendar coverage, day-count basis and compounding assumptions change.p.14
6. Face-value principal, fair-value estimates and amortised-cost carrying amounts answer different questions and should be checked separately.p.12
7. Deterministic reason codes are sufficient for the controls tested and their contributions can be inspected directly.p.13