Oracle Financial Services Hedge Management and IFRS Valuations

The Oracle corporation announced in July, 2011 product output of Oracle Financial Services Hedge Management and IFRS Valuations designed to help financial institutions to facilitate observance of requirements of International Financial Reporting Standards (IFRS or IFRS — International Financial Reporting Standards).

According to Oracle, new regulating documents, such as "Dodd-Franck's act of reforming of Wall Street and consumer protection" (Dodd-Frank Wall Street Reform and Consumer Protection Act) to the USA and a document package in the field of bank regulation (so-called Basel III) and also accepted standards IFRS set need of tough approval of treasurer transactions and transactions under risk with requirements of regulators.

"Today the need for upgrade of the main financial platforms using solutions which integrate processes of management of finance, efficiency, risks and reportings for regulating authorities grows. This requirement is caused, mainly, by requirements of the competition, market economy and business performance — Michael Versace, the director of IDC Financial Insights of a research of global risks in the financial sphere reported. — For regulating authorities and the regulated companies this upgrade gives the chance to carry out more exact, conscious risks assessment. Financial institutions can have these opportunities today and use such level of seamless integration for the successful competition in the market and, at the same time, be prepared for the future changes in the field of financial accounting and the reporting". As a part of the Oracle Financial Services Analytical Applications complex which provides a uniform financial data model and architecture of applications the product Oracle Financial Services Hedge Management and IFRS Valuations facilitates such approval, emphasized in Oracle.

Helps with the whole Oracle Financial Services Hedge Management and IFRS Valuations to financial institutions: provide observance of regulatory requirements to financial statements according to IFRS by classification and calculation of fair value of financial instruments, calculation of an effective interest rate and also calculation and monitoring of efficiency of the relations of hedging; create and model the strategy of hedging for optimal capital utilization — financial institutions can control efficiency of retrospective hedging, apply scenario modeling ("what-if the analysis") and to carry out stress testing (stress testing) for check of efficiency of hedging, and with ease to manage procedures of the termination of hedging; use the uniform mechanism of calculations to treasurer department and accounting and to use the general processes of quality control of data and approval in finance applications and applications on risk management.