Features

Comprehensive functionality to meet international accounting requirements confidently

The modules of zeb/ifrs allow you to meet the requirements of the International Financial Reporting Standards (IFRS). To this effect, the modular standard software provides you with intuitive user interfaces for categorisation, impairment, hedge accounting and the management of posting approaches. Specifically, zeb/ifrs supports you with the following functionalities and features:

Categorisation

The starting point of IAS 39 is the clear assignment of financial assets and liabilities into categories. Apart from offering technical solutions, zeb/ has also gathered ample project expertise in the functional design of IFRS categorisations over many years. Only a few banking systems permit the direct input of the IFRS category so that, as a rule, it has to be derived from the existing characteristics of the financial instruments. Via the graphic user interface of the zeb/categoriser, this task can be performed in line with IAS while account is taken of customer-specific requirements and ensuring audit acceptability. The software allows you to access any data fields and characteristics (e.g. products, upstream systems, and custody account numbers) for defining categorisation rules.

Impairment

In the transition from national accounting standards to IFRS, many institutions have decided to postpone the implementation of provisioning and value adjustment pursuant to IFRS because of its complexity and have handled in line with the local GAAP methods used before. Auditors are focusing more and more on the correct implementation of impairment in accordance with IFRS. zeb/ifrs-impairment supports all the steps of the impairment process from data import to posting. With this impairment solution, you can compute itemised, general and portfolio value adjustments as well as the unwinding effect in accordance with IFRS. The browser interface makes it simple to navigate from the overview of all impairment cases and individual accounts to the expected cash-flow profile. The provisioning calculated by the software can be adopted or adjusted on the basis of diverging expectations with regard to cash-flows and liquidation hedging instruments. The integrated table of itemised value adjustments shows how the allowances may change over time.

Valuation

Valuation forms a core element of the accounting concept of IFRS. In contrast to the German Commercial Code, the focus is on a different method for determining amortised costs (at a constant effective interest rate) and on the valuation at market prices (fair value principle). These may, for example, be calculated on the basis of current quoted market prices (mark-to-market) or financial models (mark-to-model). zeb/ifrs covers both valuations at amortised cost and full fair value. Its functionalities include the representation of all product types both in transactions for customers and for own accounts as well as the consideration of fictions, model assumptions and impaired performance.

Hedge accounting

The IAS.Hedge-Engine covers all aspects of hedge accounting for interest-rate risks pursuant to IAS 39. The module supports cash-flow and fair value hedge accounting as well as the fair value option with bank-wide controlling. The controlling and treasury management processes are fully supported from the creation of hedging relationships to the performance of efficiency tests and from determining posting consequences to subsequent plausibility checks. The functionalities are rounded off by comprehensive simulation options, the audit-proof documentation of the hedge process and the competency system with logging function. The IAS.Hedge-Engine can be set up as an add-on to existing IFRS systems and posting approaches requiring the integration of a minimum number of components and can import portfolio and market data from existing data sources. In 2004, the first IFRS-compliant financial statements that were prepared by means of zeb/Hedge Accounting and concerted with leading auditors were successfully audited.

Posting

The posting engine is an optional software module that operates as a link between the other modules of zeb/ifrs and the core posting system of the bank. It transforms the transactions supplied by the zeb/ifrs modules into posting entries adjusted to the specific accounts classification and the bank's individual posting approach and transfers them to the core posting system via an export interface. The posting engine has an object-oriented accounting system in which accounts with asset and revenue information are maintained for each financial object. By means of posting rules for which parameters can be defined, the object-oriented accounting system generates IFRS-compliant postings on the basis of the posting amounts supplied by zeb/ifrs.

State-of-the-art system architecture

A scalable system architecture that can be tailored to the size of your bank and dynamically expanded when requirements rise guarantees an operating scenario perfectly adjusted to banks of all sizes. The programme is accessed via a modern web interface so that its wide utilisation is ensured in the various business areas of your bank. International requirements are met through multilingual interfaces and the handling of several currencies. Seamless integration into existing system environments is guaranteed by pre-configured interfaces that can be adapted as needed.

Do you need further information or are you interested in using the zeb/ifrs in your bank? We would be pleased to arrange a meeting at your office to present all the functionalities of the zeb/ifrs and discuss its application in your bank.