IFRS Academy
IFRS for Banks

Financial Architects has the complete N to N solution from a transaction event (e.g. impairment of a loan) all the way to the regulatory report. The IFRS solution, part of Financial Studio, is modular based and consist of seven major steps: 

 

1. Data foundation

• Shared between Risk, Finance, Management accounting and Compliance
• Contains all predefined tables for all data required for IFRS purposes

2. Rules engine

• Powerful rules engine to validate, transform and enrich the data with the logic transparent for all users
• Can enrich the incoming data with the corrrect IFRS category and apply the impairment rules

3. IFRS valuation calculators

• Fair Value measurement, Effective Yield, Amortized Cost, Individual Impairment, Collective Impairment and Hedge Effectiveness Test
• Calculate all necessary IFRS values
• Values stored within the product set respective valuation tables, ready to be picked up by the accounting generator

4. Multi- Gaap event based accounting generator

• Generates double-sided entries based on transactional information
• Events either detected by Financial Studio or delivered to FinArch by the banking applications
• Preloaded with all the IFRS accounting logic embedding years of intellectual knowhow and practical experience
  

5. Multi Gaap general ledger

• Probably the best General Ledger within the finance industry with unique features as daily balances on three date notions, average balances, P/L sell off, mark to market valuations, underlying transactional integration…
• Capable of storing multiple gaap balances within the same entity
• Preloaded with predefined values in the multi dimensional accounting key to facilitate the implementation either as a pure guidance or as best practice
  

6. Rules driven enrichment with IFRS reporting codes

• Avoid putting reporting logic within the multi dimensional accounting key and avoid hence setting up and maintaining reporting codes at the start of the accounting process, FinArch's IFRS solution has the unique feature to enrich the accounting key with as many reporting codes as required
• These enrichment rules are based on the accounting key and all attributes available in the data repository
• The rules to derive the IFRS reporting codes are preloaded and based on the predefined values within the multi-dimensional reporting key
  

7. IFRS regulatory reporting

• Certified in 20+ countries worldwide, FinArch can automate the compliance reporting to be done to the local regulator
• Ultimate audit trail: move from one cell to one report all the way back to the transactional detail

FinArch's solution considers all of the necessary functionalities associated with calculating for IFRS GAAP delivered via a flexible Event-Based Accounting Engine. The solution is a powerful subsidiary ledger providing a multi-GAAP accounting environment complete with extensive consolidation and reconciliation functionality.

 

FinArch pre-configured its IFRS solution with the best practices and the knowledge acquired through implemented the solution within a lot of institutions in the past years.  This is reflected in the predefined data model, the IFRS accounting templates, the predefined rules for the IFRS reporting codes enrichment, the predefined accounting key blocks, the IFRS valuation calculators…

The event based accounting generator depicts perfectly the solution's flexibility. The delta-based accounting can be initiated to speed up the implementation time to make the organization IFRS compliant. Subsequently, the existing accounting flow can continue, but on top of that, the additional delta postings needed for IFRS purposes can be generated. The solution also enables to gradually move that accounting logic (for instance, phased approach source system by source system) from the current banking applications to the event based accounting generator to become fully IFRS driven.