zeb.control.accounting - Valuation

Measurement is a core element of the IFRS accounting concept. zeb.control.accounting – Valuation covers both measurement at amortized cost and at the full fair value. According to IFRS, amortized costs are calculated by using the effective interest method. All IFRS-relevant measurement methods are supported (determining amortized costs at a constant effective interest rate, linkage to an external pricing provider, mark-to-model valuation).

Furthermore, it is possible to flexibly determine the product portfolio that has to be calculated. Its functionalities cover both customer business and proprietary trading as well as the consideration of scenarios, model assumptions and impaired performance.

Financial assets categorisation

The starting point of IAS 39 or IFRS 9 is the clear assignment of financial assets and liabilities to categories. Apart from offering technical solutions, zeb has also gathered ample project expertise in the functional design of IFRS classification 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 categorizer, this task can be performed in line with IAS while taking account of customer-specific requirements and ensuring audit acceptability. The accounting software allows you to access any data fields and characteristics (e.g. products, feeder systems, and custody account numbers) for defining classification rules. The classification determines the following valuation of the financial instruments.

IFRS valuation methods, covering amortized cost and full fair value

Valuation is a core element of the IFRS accounting concept. As opposed to the most local GAAPs, IFRS concentrates on the one hand on a different determination of amortised acquisition costs (effective interest constant accruals/deferrals of acquisition costs). On the other hand, IFRS places much more emphasis on valuation at market prices (fair values), which can be derived among other things from exchange prices (mark-to-market) or with finance mathematic models (mark-to-model). The required calculation functions bring about a considerable adaptation effort in a credit institution’s IT landscape.

zeb.control.accounting - Valuation covers both valuations at amortized cost and full fair value. According to IFRS amortized costs are calculated by using the effective interest method. Full Fair Value valuation is optionally realised with externally supplied market pricing or with the help of finance mathematic models in zeb.control.accounting. All IFRS relevant valuation methods are supported (effective interest constant accruals/deferrals, linkage to an external pricing provider, mark-to-model valuation). Furthermore it is possible to flexible determine the product portfolio to be calculated.

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. The mapping of all product types both in the commercial business and also in the own book trading area is as well part of the scope of services, as the consideration of fictional structures, model assumptions and defaults.

• zeb’s expert knowledge of IFRS 9 Standard – proven track record
• Implementation expertise at international institutions with different size and complexity
• Low investments by integration into existing IT landscapes
• Efficient solution with customizing options – fast, flexible and easy to use
• State-of-the art technology