FERNBACH, a leading provider of solutions for IFRS accounting and Enterprise-wide Value & Risk Management, has won two new customers in Luxembourg.
Commerzbank International S.A. Luxemburg (CISAL) and Erste EuropÃ¤ische Pfandbrief- und Kommunalkreditbank AG (EEPK) have both selected FERNBACH FlexFinanceÂ® IFRS to streamline their accounting processes and to enable compliance with International Financial Reporting Standards (IFRS) which soon may replace Luxembourgâs former national accounting standard.
Commerzbank International S.A. (CISAL) is a subsidiary of Commerzbank AG, Germanyâs second-largest bank and one of Europeâs major banks. Erste EuropÃ¤ische Pfandbrief- und Kommunalkreditbank (EEPK) is a Luxembourg bank that specialises in public sector financing, and grants loans to states, countries, local authorities and institutions under public law which are headquartered within the European monetary union or within the Organisation for Economic Co-operation and Development (OECD).
Both banks are to implement FlexFinanceÂ® as the essential IFRS calculation and posting engine to their core banking systems which are based on TEMENOS Globus. FERNBACH was selected to provide information which was unavailable from the existing Globus system.
FERNBACHâs FlexFinanceÂ® IFRS is a straightforward solution that reduces the intricacy of IFRS compliance while also reducing costs. Based upon deal-level parallel accounting, as opposed to generating balance adjustments from local GAAP to IFRS, FlexFinanceÂ® IFRS offers banks and financial institutions investment security.
The FERNBACH system has an intuitive user interface which fully integrates with TEMENOSâs Globus system. This straightforward integration allows existing users of the Globus system, such as CISAL and EEPK, to easily use FERNBACH to prepare future statements according to IFRS as well as local GAAP.
CISAL and EEPK were both looking for an IFRS solution which would ensure efficient and accurate accounting, while providing data that would comply with auditing standards around traceability and data transparency.
Like many other banks, CISAL and EEPK were faced with the decision of whether to prepare their IFRS balance sheet in a decentralised arrangement linked to their operational core banking and trading systems; or to introduce a central accounting solution such as FERNBACHâs which can also be enhanced and deployed for other bank management purposes.
For both banks the availability, endorsements from FERNBACHâs existing customers and the superiority and functionality of the software were all decisive factors for the selection of FlexFinanceÂ® IFRS.
Paul Rothenberger, member of FERNBACHâs Management Board said, âIFRS-based valuation results and valuation approaches will characterise financial accounting, controlling, internal and regulatory reporting. With FlexFinanceÂ® IFRS, Commerzbank and EEPK will implement a solution which has already fulfilled these requirements based on one central basis for analysis. We are looking forward to working with the two institutes which operate very successfully within the Luxembourgian and the international markets.â
FERNBACHâs IFRS software uses raw deal data which can be transferred from existing settlement systems into the Data Management Suite (DMS). On the basis of this data set, it provides transaction-oriented, parallel IFRS accounting. All data and results can always be compared or verified at accounting event level. The person creating the balance sheet is guided through the audit trail click by click, from the balance sheet to the individual cash flow.