FinArch, the leading international provider of risk and financial management software, today announced that Ernst & Young has validated its IAS/IFRS Accounting Schemes.
Together with the growing number of IAS/IFRS customers, this further consolidates FinArch's position as the leading IAS/IFRS software vendor worldwide.
Many countries across the globe are getting ready to adopt accounting practices in accordance with International Financial Reporting Standards (IFRS). The accreditation by Ernst & Young is another sign of trust from the financial world in FinArch's IAS/IFRS capabilities. Ernst & Young Bedrijfsrevisoren BCVBA ("Ernst & Young") has validated the compliance of a number of the FinArch accounting templates using the ISAE 3000 audit standard and verified the compliance of the accounting entries with current applicable International financial reporting standards, ie IAS 39. The following accounting templates have been verified in accordance with this standard: Loan classified as a Loan and Receivable, Loan with a rate below market rate classified as Loan and Receivable, Loan-Individual Impairment classified as Loan and Receivable, Loan-Collective Impairment classified as Loan and Receivable.
Financial Studio's Accounting solution comes with an extensive range of functionality to address the requirements of International Financial Reporting Standards (IFRS). As IAS/IFRS is not just about reporting, Financial Studio considers all of the necessary functionalities associated with calculating the different measurement requirements stated in IAS 39 and delivers IFRS GAAP via a flexible Event Based Accounting Engine with predefined IAS GAAP accounting templates. Financial Studio is a powerful Subsidiary Ledger providing a multi-GAAP accounting environment complete with extensive consolidation and reconciliation functionality.
FinArch offers an end-to-end IAS/IFRS solution that is pre-configured with the best practices and the knowledge acquired through implementing the solution within a lot of institutions in the past years. This is reflected in the predefined data model, the IAS/IFRS accounting templates, the predefined rules for the IFRS reporting codes enrichment, the predefined accounting key blocks, the IFRS valuation calculators...
The IAS/IFRS solution follows a seven-step modular based approach ultimately providing automated compliance reporting to the local regulator for a substantial number of countries. Financial institutions have the flexibility to adopt FinArch's 'from event to disclosure' philosophy either completely or partially. In the latter case, the "IAS/IFRS delta event based accounting", the bank delivers the local GAAP accounting entries while Financial Studio delivers the delta postings which can result from the different IAS calculators. Alternatively, when a bank opts for the full event based accounting approach, it delivers the detailed contract information while the accounting entries will be based on events interpreted and booked within the sub ledger. The now validated IAS/IFRS accounting templates exist in these two different solutions.
FinArch's IAS/IFRS accounting templates are constructed following the IAS/IFRS rules, FAS and some common practices in international accounting. The templates are thus IAS/IFRS inspired but can be parameterised for any local GAAP support. The different accounting schemes can be customised and can be viewed in both the accounting engine as well as in web based reports.
Tom Dejonghe, Product Manager IAS/IFRS at FinArch, states: "We are very pleased with this accreditation by Ernst & Young. This confirms FinArch's position as leading IAS/IFRS software vendor. This will even further increase the interest of the banking world in our solution." Dejonghe adds: "The general ledger is a core feature of our FRP solution: it is the only general ledger today in the finance industry that fits financial institutions' complex requirements such as daily balances on different date notions (like trade -, value - and posting date), average balances, FX processes like P&L lock-in and sell-off, mark-to-market valuations, fair value, amortized cost and impairment calculation, hedge accounting including effectiveness testing and this fully integrated with the underlying transactional and position data ..." "Another important benefit of our solution is that it fits within current architectures. It can co-exist and complement existing general ledgers or other down- or upstream systems. This will allow cost effective implementations in a practical and accredited way." Dejonghe concludes.
FinArch's IAS accounting templates cover the complete set needed to drive the accounting of financial institutions. The templates can be applied by investment banks, private banks, retail banks or any banking conglomerate.