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When you have to be rightSolutionPrimerFinancial ServicesOneSumX for IFRSThe accounting structure for many financial institutions and large companiestransformed fundamentally the International Accounting Standards Board(IASB) introduced the International Financial Reporting Standards (IFRS) tobring transparency, accountability and efficiency to financial markets. TheIFRS accounting framework has increasingly become the global benchmark,and has been emulated in many other jurisdictions around the world, such asFinancial Accounting Standards Board (FASB) and its Current Expected CreditLoss (CECL) impairment standard.

2OneSumX for IFRSOneSumX for IFRS

OneSumX for IFRS3IFRS – The Global BenchmarkDespite the clear advantage that theseinternational standards can deliver in termsof transparency and comparability forinvestors and other stakeholders, they havealso introduced new layers of complexity. Thisis not limited to accounting departments forfirms to fully adhere to the standards, closecollaboration is required across differentdepartments – namely risk, finance,compliance and IT.As the pace of IFRS implementation has beenstaggered across the world, there is now anuneven playing field, with some financialinstitutions installing tactical IT solutions todeal with early instances of the rules; othersare currently implementing IFRS-ready systemsfor the first time. While some entities considerIFRS implementation as part of multi-countryand multi-GAAP finance transformationprograms, others may have chosen a moredecentralized approach within each country/entity/division taking their own approach.Wolters Kluwer can help financial institutionsdevelop a strategic approach to managecurrent and future IFRS compliance, providingthe required expertise, content and technology.Our extensive experience in dealing with IFRSin different jurisdictions, our proven andflexible solution and our constant adaptationto new standards can ensure you remain fullyIFRS compliant.The IFRS accounting frameworkhas increasingly become theglobal benchmark, and hasbeen emulated in many otherjurisdictions around the world,such as Financial AccountingStandards Board (FASB) and itsCurrent Expected Credit Loss(CECL) impairment standard.

4OneSumX for IFRSThe first challenge when developing an IFRS solution is tocreate a pragmatic and efficient architecture to accountfor transactions which are generated by systems that haveeach used different logic models.This can be achieved with a central solution,although this kind of technology has to offerdifferent approaches to match those of otherapplications while retaining the granularity ofinformation found in the source systems. Thesecond challenge is in providing the differentIFRS measurements, such as amortized cost,fair value, hedge effectiveness, and calculationof expected credit losses that take into accountreasonable and supportable information aboutthe future.OneSumX IFRS collates and standardizes therelevant data, enriches it with the additionalmeasures as per the IFRS rules and automatethe classification through flexible businessrules. Having an end-to-end IFRS view whichensures an integrated complete auditabilityof the system reduces the month-end costsand enables firms to shift their attentionfrom labour-intensive processing to valuableanalysis.Our platform can work out specific compliantIFRS calculations such as impairment, theexpected credit losses under IFRS 9, hedgeeffectiveness calculations and so on, along withtheir often complex and sometimes retroactiveimpacts.Our platform can work out specificcompliant IFRS calculations such asimpairment, the expected credit losses underIFRS 9, hedge effectiveness calculations andso on, along with their often complex andsometimes retroactive impacts.Various types of disclosure reporting arerequired by IFRS and by local supervisors.The solution can generate these disclosuresin accordance with the different standards.We automate the IFRS regulatory reporting tonumerous local authorities around the world,including the standardized EU-wide reportingframework, FINREP.Firms need a comprehensive and modularIFRS solution that can fulfil the entire cycleof activities, from the way in which events ortransactions should be treated, to processingthe IFRS calculations and accounting to thedelivery of disclosures.Wide contract and event data managementThrough our data management capabilities wecan process, monitor and generate informationon a wide range of financial products andevents covering the entire product lifecycle, from a partial loan prepayment or arestructuring to an equity split.

OneSumX for IFRSIFRS (re-)classificationOneSumX IFRS applies the various IFRSclassifications for financial instruments,transactions and events as defined by thestandard or user-defined classification rules.It also automatically reclassifies financialinstruments and measurement consequencesif and when the business model for thoseinstruments changes. It also includes the cashflow characteristic test and benchmark test ifrequired for classification.Common calculationsThe solution includes common calculationssuch as amortized cost, fair value, effectiveinterest rate and implied interest ratecalculations in accordance with IFRS Framework,specifically IFRS 9 and IFRS 16. The calculatorsin a wider stress testing and scenario basedframework makes it possible to do impactanalysis and use it across a wider IFRSframework.IFRS impairmentThe solution contains incurred and expectedloss calculations as well as the differentdecompositions (and disclosures) for thesecalculations. The impairment module containsextrapolation, macro economic variabilityimpact generation (PD/LGD/EAD), stageassessment, segmentation and decompositionto fulfil the impairment requirements. It has theability to manage the impairment on individualand collective level across stages. This moduleserves the different Finance, Risk and Reportingusers – essential when getting an enterprisewide view for management oversight.IFRS leasingAbility to generate the accountingmeasurements for both lessor and lessee aswell as bridging to the IFRS 9 requirements forthe lessor and the calculation of the implicitinterest rate. The calculation layer contains thecost and revaluation model including residualvalue, liability value, impairment, accumulateddepreciation and net investment of the lease.5IFRS hedgingOneSumX IFRS offers the end-to-end hedgeaccounting with the calculation of the hedgedrisk and hedge effectiveness as the accountingamounts to go into the ledger. This is availablefor cash flow and fair value hedge as well as onthe different levels (micro, portfolio and macro).IFRS chart of accounts and accountingschemesOneSumX IFRS also offers the possibility togenerate the full IFRS balance for all financialinstruments stored in the systems by meansof standard accounting schemes for theseinstruments.Contract level subledger and general ledgerBeyond the standard accounting templatesand processes, OneSumX IFRS offers a detailedsubledger to better support the demandinganalysis and control requirements. It hasfunctionality to deal specifically with theaccounting for foreign currency transactions,under the requirements and classification ofIAS 21.IFRS disclosuresNext to the necessary IFRS calculation andprocessing, the OneSumX IFRS solution offersthe necessary management informationreporting tools and required IFRS disclosuresas defined in the IFRS 7, IFRS 9, IFRS 12, etc.standards.Multi-GAAP, multi-entity and consolidationThe solution is genuinely multi-entity,multi-GAAP and multi-currency supportingcomplex GAAP derivation and consolidationrequirements in line with IFRS 10, 11, and 12.

OneSumX for IFRS6OneSumX for IFRS functionalarchitectureFull transparency is available at every step, such as with the drill functionalityfrom regulatory disclosure back to a single event. Even user defined businessrules have full drill-back. The solution includes flexible and powerful enduser analysis and visualization.SOURCESYSTEMSDATA LAYERBusinesseventsEVENT MANAGEMENTEvent detectionEvent detectionVALUATION ENGINESContractsIFRS ACCOUNTINGAccounting engineIFRS schemesRe-classificationMarket ratesand pricesFees and chargesIFRS CALCULATIONSAmortized costData validationData enrichmentAudit trailReconciliationMulti-GAAP subledgerPeriodic/day/intradayMulti-position key@General ledger(s)IFRSImpairmentConsolidationHedging Multi-GAAP journalsReporting derivationIFRS TREATMENTFX translationPositionsReferencedataIFRS CoACash flowsValuationsPositionsEntity & CoAmanagementUSEREXPERIENCE Security/access controlVersion controlHistory managementDocumentation Business rulesWorkflowWeb basedOpen and exportable

OneSumX for IFRSOur comprehensive solution can assistyou in implementing IFRS in a solid, totallycompliant and transparent way that will fullysatisfy auditors and regulators. OneSumXIFRS comprehensively addresses the specificmethodologies and calculations of IFRS,particularly fair value and amortized cost,expected credit losses and hedge accountingwhich are continuously evolving. The solution’smodularity and flexibility enable firms tobenefit from certified off-the-shelf functionalitywhich can be tailored to deliver the mosteffective implementation for a firm’s specificsituation.With its numerous successful IFRSimplementations, Wolters Kluwer bringsexperience and methodology, enabling rapidimplementation with practical, comprehensivesolutions to take care of any eventuality.We are fully committed to adopt future IFRSevolutions in our solution. Our IFRS experts arecontinuously following this evolving domainand participate actively in seminars and impactstudies. The implementation process createsan opportunity for firms to consolidate andstreamline their accounting logic from itsdisparate base, spread over many systems intoa solid, scalable and transparent solution. Thisimproves transparency and consistency butalso reduces complexity and operational costs.Integrated workflow and control mechanismscreate a high level of automation whichaccelerates the closing process and reduces thetime for stakeholders to receive reports. Witha solution that is multi-entity, multi-currencyand multi-GAAP, and complemented withconsolidation, OneSumX IFRS can support therequirements of your global business.7Wolters Kluwer offers the solutions, content andexpertise for firms to have a robust and reliablesolution that will successfully integrate futureIFRS evolution. Consistently named a leadingprovider of IFRS technology solutions by ChartisResearch, Wolters Kluwer puts our clients inthe best possible position to safely manage thecontinuous evolution of IFRS.Named leadingprovider of IFRStechnology solutionsby Chartis Research,Wolters KluwerFinancial Servicesputs our clients in thebest possible positionto safely manage thecontinuous evolutionof IFRS.