SAP® Accounting for Financial Instruments Streamlines Compliance with International Financial Reporting Standards and Replaces Time-consuming Spreadsheet Patchwork
COPENHAGEN, Denmark — SAP AG (NYSE: SAP) today announced that the SAP for Banking industry solution is helping financial institutions achieve faster and more reliable reporting in accordance with International Financial Reporting Standards (IFRS), recent European Union (EU) legislation regulating how banks report their financial assets and liabilities. SAP® Accounting for Financial Instruments, a banking application developed with input from more than 20 major financial institutions, enables more efficient collecting, reporting and auditing of financial information by centralizing financial data in a common database. This helps banks eliminate the widespread usage of time-consuming, manually compiled spreadsheets. The announcement was made at SAPPHIRE® ’05 Copenhagen, SAP’s international customer conference, being held in Copenhagen, Denmark, April 26–28.
SAP AG (NYSE: SAP) today announced that the SAP for Banking industry solution is helping financial institutions achieve faster and more reliable reporting in accordance with International Financial Reporting Standards (IFRS), recent European Union (EU) legislation regulating how banks report their financial assets and liabilities. SAP® Accounting for Financial Instruments, a banking application developed with input from more than 20 major financial institutions, enables more efficient collecting, reporting and auditing of financial information by centralizing financial data in a common database. This helps banks eliminate the widespread usage of time-consuming, manually compiled spreadsheets. The announcement was made at SAPPHIRE® ’05 Copenhagen, SAP’s international customer conference, being held in Copenhagen, Denmark, April 26–28.
SAP AG (NYSE: SAP) today announced that the SAP for Banking industry solution is helping financial institutions achieve faster and more reliable reporting in accordance with International Financial Reporting Standards (IFRS), recent European Union (EU) legislation regulating how banks report their financial assets and liabilities. SAP® Accounting for Financial Instruments, a banking application developed with input from more than 20 major financial institutions, enables more efficient collecting, reporting and auditing of financial information by centralizing financial data in a common database. This helps banks eliminate the widespread usage of time-consuming, manually compiled spreadsheets. The announcement was made at SAPPHIRE® ’05 Copenhagen, SAP’s international customer conference, being held in Copenhagen, Denmark, April 26–28.
First customers are already live with the new banking application, including Banche Popolari Unite in Italy and German banks Bankgesellschaft Berlin (BGB), DZ BANK, HSH Nordbank, HypoVereinsbank (HVB), IKB Deutsche Industriebank, WestLB AG and Westdeutsche Immobilien Bank (WIB). Additional customers will follow, including Kommunalkredit (Austria), Entenial (France), National Bank of Greece and Interbanca (Italy).
First customers are already live with the new banking application, including Banche Popolari Unite in Italy and German banks Bankgesellschaft Berlin (BGB), DZ BANK, HSH Nordbank, HypoVereinsbank (HVB), IKB Deutsche Industriebank, WestLB AG and Westdeutsche Immobilien Bank (WIB). Additional customers will follow, including Kommunalkredit (Austria), Entenial (France), National Bank of Greece and Interbanca (Italy).
First customers are already live with the new banking application, including Banche Popolari Unite in Italy and German banks Bankgesellschaft Berlin (BGB), DZ BANK, HSH Nordbank, HypoVereinsbank (HVB), IKB Deutsche Industriebank, WestLB AG and Westdeutsche Immobilien Bank (WIB). Additional customers will follow, including Kommunalkredit (Austria), Entenial (France), National Bank of Greece and Interbanca (Italy).
IFRS – A New Playing Field in 2005
When European banks opened for business at the start of this year, sweeping legislative changes had taken effect, impacting their accounting practices and regulating their financial results calculations. Formerly referred to as International Accounting Standards (IAS), IFRS went into effect for publicly listed banks in the EU starting January 1, 2005, and is rapidly finding acceptance throughout the global financial sector. More than 90 countries around the world are moving to either require or accept IFRS, where regulatory authorities have initiated the convergence of their local Generally Accepted Accounting Principles (GAAP) with the new international standard.
IFRS – A New Playing Field in 2005
When European banks opened for business at the start of this year, sweeping legislative changes had taken effect, impacting their accounting practices and regulating their financial results calculations. Formerly referred to as International Accounting Standards (IAS), IFRS went into effect for publicly listed banks in the EU starting January 1, 2005, and is rapidly finding acceptance throughout the global financial sector. More than 90 countries around the world are moving to either require or accept IFRS, where regulatory authorities have initiated the convergence of their local Generally Accepted Accounting Principles (GAAP) with the new international standard.
IFRS – A New Playing Field in 2005
When European banks opened for business at the start of this year, sweeping legislative changes had taken effect, impacting their accounting practices and regulating their financial results calculations. Formerly referred to as International Accounting Standards (IAS), IFRS went into effect for publicly listed banks in the EU starting January 1, 2005, and is rapidly finding acceptance throughout the global financial sector. More than 90 countries around the world are moving to either require or accept IFRS, where regulatory authorities have initiated the convergence of their local Generally Accepted Accounting Principles (GAAP) with the new international standard.
A Milestone in the Road Map to Regulatory Compliance
Working closely with financial institutions such as DZ BANK, HSH Nordbank, Landesbank Rheinland-Pfalz (LRP) and WestLB, SAP developed SAP Accounting for Financial Instruments to meet banks’ expressed needs for complying with the extensive IFRS demands.
A Milestone in the Road Map to Regulatory Compliance
Working closely with financial institutions such as DZ BANK, HSH Nordbank, Landesbank Rheinland-Pfalz (LRP) and WestLB, SAP developed SAP Accounting for Financial Instruments to meet banks’ expressed needs for complying with the extensive IFRS demands.
A Milestone in the Road Map to Regulatory Compliance
Working closely with financial institutions such as DZ BANK, HSH Nordbank, Landesbank Rheinland-Pfalz (LRP) and WestLB, SAP developed SAP Accounting for Financial Instruments to meet banks’ expressed needs for complying with the extensive IFRS demands.
In evaluating how to best enable its IFRS compliance, Westdeutsche ImmobilienBank (WIB) was very interested in having a central financial database to unify the necessary information for IFRS, Basel II and internal reporting—information that was stored throughout various databases for individual areas such as operative banking systems and portfolio evaluation. WIB stepped on board early with SAP’s IFRS software development efforts as one of the first customers. The bank went live with SAP Accounting for Financial Instruments for IFRS compliance in January 2005.
In evaluating how to best enable its IFRS compliance, Westdeutsche ImmobilienBank (WIB) was very interested in having a central financial database to unify the necessary information for IFRS, Basel II and internal reporting—information that was stored throughout various databases for individual areas such as operative banking systems and portfolio evaluation. WIB stepped on board early with SAP’s IFRS software development efforts as one of the first customers. The bank went live with SAP Accounting for Financial Instruments for IFRS compliance in January 2005.
In evaluating how to best enable its IFRS compliance, Westdeutsche ImmobilienBank (WIB) was very interested in having a central financial database to unify the necessary information for IFRS, Basel II and internal reporting—information that was stored throughout various databases for individual areas such as operative banking systems and portfolio evaluation. WIB stepped on board early with SAP’s IFRS software development efforts as one of the first customers. The bank went live with SAP Accounting for Financial Instruments for IFRS compliance in January 2005.
“SAP has set a benchmark for IFRS solutions with the SAP Accounting for Financial Instruments application,” said Michaela Dreßler, IFRS project lead, Westdeutsche ImmobilienBank. “The SAP solution is the result of an enormous effort to create comprehensive software functionality built on the solid foundation of extensive specialist know-how from various banking institutions. We could find no other alternative on the market that could comprehensively cover IFRS requirements while at the same time creating new synergies for more effective core banking processes.”
“SAP has set a benchmark for IFRS solutions with the SAP Accounting for Financial Instruments application,” said Michaela Dreßler, IFRS project lead, Westdeutsche ImmobilienBank. “The SAP solution is the result of an enormous effort to create comprehensive software functionality built on the solid foundation of extensive specialist know-how from various banking institutions. We could find no other alternative on the market that could comprehensively cover IFRS requirements while at the same time creating new synergies for more effective core banking processes.”
“SAP has set a benchmark for IFRS solutions with the SAP Accounting for Financial Instruments application,” said Michaela Dreßler, IFRS project lead, Westdeutsche ImmobilienBank. “The SAP solution is the result of an enormous effort to create comprehensive software functionality built on the solid foundation of extensive specialist know-how from various banking institutions. We could find no other alternative on the market that could comprehensively cover IFRS requirements while at the same time creating new synergies for more effective core banking processes.”
Comprehensive Toolset Covering IFRS Demands
One of the critical IFRS regulations addressed by the SAP solution is IAS 39, which establishes principles for recognizing, measuring and disclosing information about financial instruments—a bank’s financial assets and liabilities such as stocks, bonds or loans. IAS 39 establishes a comparable measurement for financial assets by requiring banks to calculate the value of their assets and liabilities based more strongly on market valuation and to include additional assets such as futures and options in their consolidated reporting.
Comprehensive Toolset Covering IFRS Demands
One of the critical IFRS regulations addressed by the SAP solution is IAS 39, which establishes principles for recognizing, measuring and disclosing information about financial instruments—a bank’s financial assets and liabilities such as stocks, bonds or loans. IAS 39 establishes a comparable measurement for financial assets by requiring banks to calculate the value of their assets and liabilities based more strongly on market valuation and to include additional assets such as futures and options in their consolidated reporting.
Comprehensive Toolset Covering IFRS Demands
One of the critical IFRS regulations addressed by the SAP solution is IAS 39, which establishes principles for recognizing, measuring and disclosing information about financial instruments—a bank’s financial assets and liabilities such as stocks, bonds or loans. IAS 39 establishes a comparable measurement for financial assets by requiring banks to calculate the value of their assets and liabilities based more strongly on market valuation and to include additional assets such as futures and options in their consolidated reporting.
SAP Accounting for Financial Instruments includes a centralized financial database that creates a full audit trail; enables drilldowns from consolidated report data to single transactions, across business areas; and allows banks to compare disparate financial information reliably. This centralized database also helps banks meet the complicated hedge accounting requirements of IAS 39, which stipulate that financial data, usually coming from different systems and managed in different sub-ledgers, be comparable based on a common valuation process.
SAP Accounting for Financial Instruments includes a centralized financial database that creates a full audit trail; enables drilldowns from consolidated report data to single transactions, across business areas; and allows banks to compare disparate financial information reliably. This centralized database also helps banks meet the complicated hedge accounting requirements of IAS 39, which stipulate that financial data, usually coming from different systems and managed in different sub-ledgers, be comparable based on a common valuation process.
SAP Accounting for Financial Instruments includes a centralized financial database that creates a full audit trail; enables drilldowns from consolidated report data to single transactions, across business areas; and allows banks to compare disparate financial information reliably. This centralized database also helps banks meet the complicated hedge accounting requirements of IAS 39, which stipulate that financial data, usually coming from different systems and managed in different sub-ledgers, be comparable based on a common valuation process.
In addition, the software allows banks to valuate, post and report diverse financial assets on a single platform that helps ensure consistent master data, methods and market data. It provides flexible tools for generating reports from integrated financial data, producing balance sheets and generating profit and loss statements and notes. It also features an extensible architecture to support additional reporting needs such as the pending Basel II requirements.
In addition, the software allows banks to valuate, post and report diverse financial assets on a single platform that helps ensure consistent master data, methods and market data. It provides flexible tools for generating reports from integrated financial data, producing balance sheets and generating profit and loss statements and notes. It also features an extensible architecture to support additional reporting needs such as the pending Basel II requirements.
In addition, the software allows banks to valuate, post and report diverse financial assets on a single platform that helps ensure consistent master data, methods and market data. It provides flexible tools for generating reports from integrated financial data, producing balance sheets and generating profit and loss statements and notes. It also features an extensible architecture to support additional reporting needs such as the pending Basel II requirements.
Expanding Solution Set for Analytical Banking
SAP Accounting for Financial Instruments is part of SAP’s expanding set of analytical applications designed to support financial analysis, profitability analysis and risk management in banks. Including applications such as SAP® Basel II, this analytical banking set is based on a common infrastructure—SAP’s integrated finance and risk architecture—which features the centralized financial database as well as industry-specific processes and methods. The open architecture enables banks to harmonize their entire analytics system landscape, integrating additional SAP, third-party or custom-designed analytical applications.
Expanding Solution Set for Analytical Banking
SAP Accounting for Financial Instruments is part of SAP’s expanding set of analytical applications designed to support financial analysis, profitability analysis and risk management in banks. Including applications such as SAP® Basel II, this analytical banking set is based on a common infrastructure—SAP’s integrated finance and risk architecture—which features the centralized financial database as well as industry-specific processes and methods. The open architecture enables banks to harmonize their entire analytics system landscape, integrating additional SAP, third-party or custom-designed analytical applications.
Expanding Solution Set for Analytical Banking
SAP Accounting for Financial Instruments is part of SAP’s expanding set of analytical applications designed to support financial analysis, profitability analysis and risk management in banks. Including applications such as SAP® Basel II, this analytical banking set is based on a common infrastructure—SAP’s integrated finance and risk architecture—which features the centralized financial database as well as industry-specific processes and methods. The open architecture enables banks to harmonize their entire analytics system landscape, integrating additional SAP, third-party or custom-designed analytical applications.
“From our extensive and ongoing relationships with leading international banks, we know they are not interested in another number-crunching tool,” said Thomas Balgheim, senior vice president, Financial Services, SAP AG. “SAP Accounting for Financial Instruments enables banks to effectively comply with accounting and financial reporting requirements, while also gaining the detailed financial information they need to support their business decisions and derive long-term financial and operational benefits. Combined with our integrated finance and risk architecture, these solutions are providing banks with a step-by-step approach to transform their application landscape into a modern, flexible, services-oriented architecture.”
“From our extensive and ongoing relationships with leading international banks, we know they are not interested in another number-crunching tool,” said Thomas Balgheim, senior vice president, Financial Services, SAP AG. “SAP Accounting for Financial Instruments enables banks to effectively comply with accounting and financial reporting requirements, while also gaining the detailed financial information they need to support their business decisions and derive long-term financial and operational benefits. Combined with our integrated finance and risk architecture, these solutions are providing banks with a step-by-step approach to transform their application landscape into a modern, flexible, services-oriented architecture.”
“From our extensive and ongoing relationships with leading international banks, we know they are not interested in another number-crunching tool,” said Thomas Balgheim, senior vice president, Financial Services, SAP AG. “SAP Accounting for Financial Instruments enables banks to effectively comply with accounting and financial reporting requirements, while also gaining the detailed financial information they need to support their business decisions and derive long-term financial and operational benefits. Combined with our integrated finance and risk architecture, these solutions are providing banks with a step-by-step approach to transform their application landscape into a modern, flexible, services-oriented architecture.”
For more information on SAP Accounting for Financial Instruments and the SAP for Banking industry solution, please visit: http://www.sap.com/banking.
For more information on SAP Accounting for Financial Instruments and the SAP for Banking industry solution, please visit: http://www.sap.com/banking.
For more information on SAP Accounting for Financial Instruments and the SAP for Banking industry solution, please visit: http://www.sap.com/banking.
About SAP for Banking
SAP for Banking is an industry solution that combines mySAP™ Business Suite solutions and tailored functionality to meet the unique demands of financial institutions. With more than 550 customers in 60 countries worldwide, SAP for Banking provides an integrated set of tools and automated processes to manage every aspect of the front- and back-office banking environment—from high-volume transactional banking processes and customer relationship management to financial accounting, cost controlling and profitability and risk analysis. Based on the open architecture of the SAP NetWeaver™ integration and application platform, SAP for Banking helps companies expertly manage transactions and relationships across the institution to quickly identify and exploit market opportunities and easily tailor new products to the specific needs of individual customers. (Additional information at <http://www.sap.com/banking>)
About SAP for Banking
SAP for Banking is an industry solution that combines mySAP™ Business Suite solutions and tailored functionality to meet the unique demands of financial institutions. With more than 550 customers in 60 countries worldwide, SAP for Banking provides an integrated set of tools and automated processes to manage every aspect of the front- and back-office banking environment—from high-volume transactional banking processes and customer relationship management to financial accounting, cost controlling and profitability and risk analysis. Based on the open architecture of the SAP NetWeaver™ integration and application platform, SAP for Banking helps companies expertly manage transactions and relationships across the institution to quickly identify and exploit market opportunities and easily tailor new products to the specific needs of individual customers. (Additional information at <http://www.sap.com/banking>)
About SAP for Banking
SAP for Banking is an industry solution that combines mySAP™ Business Suite solutions and tailored functionality to meet the unique demands of financial institutions. With more than 550 customers in 60 countries worldwide, SAP for Banking provides an integrated set of tools and automated processes to manage every aspect of the front- and back-office banking environment—from high-volume transactional banking processes and customer relationship management to financial accounting, cost controlling and profitability and risk analysis. Based on the open architecture of the SAP NetWeaver™ integration and application platform, SAP for Banking helps companies expertly manage transactions and relationships across the institution to quickly identify and exploit market opportunities and easily tailor new products to the specific needs of individual customers. (Additional information at <http://www.sap.com/banking>)
About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at <http://www.sap.com>)
About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at <http://www.sap.com>)
About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at <http://www.sap.com>)
(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.
(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.
(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.
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Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
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Copyright © 2005 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.
Copyright © 2005 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.
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