"The international investment bank" implemented the complex project according to IFRS 9 together with Diasoft

2019: Automation of reservation for all financial instruments

On July 3, 2019 the Diasoft company reported that in Mezhdunafrodny Investment Bank its complete line of tools for accounting and the reporting – the Flextera system and the solution Flextera BI regarding preparation of the reporting under IFRS and management reporting is set. In this project partners automated reservation for all financial instruments and completely processed a reporting set under the IFRS (IFRS) 9 parameters.

As the international interstate organization having the tax-exempt status in Russia IIB historically keeps account and the reporting according to rules IFRS therefore at entry into force of the IFRS 9 standard generally it was required to implement only the entered charges of reserves.

The command of Diasoft was faced by a task to automate formation of reserves IIB under the expected credit losses on the financial assets subject to credit risk and also to provide correct loading in storage of the reporting of these reserves and settlement indicators of reserves according to the standard. As the IIB keeps account on some activities in external systems, the command of Diasoft supported formation of reserves as on tools which are conducted in the product FLEXTERA components, and on those which belong to the third-party systems. For this purpose specialists connected credentials of reserves and assets with data of accounts and postings in balance and used the FLEXTERA BI system for the analysis of the reasons of the movement of assets and reserves.

Through joint efforts specialists of bank and Diasoft automated measure calculation, necessary for formation of provision: Probability of Default (default probability, determination of parameter is executed proceeding from credit rating of partners and influence of macroeconomic forecast indicators on partners) and also Loss Given Default (expected credit losses, namely the expected volume of not receipt of money on a financial asset in case of its default).

With assistance of Diasoft regarding completion of a product of FLEXTERA "Reserves" the bank transferred formation of reserves on all tools including the credits, deposits, repo transactions and other transactions in financial markets, financial guarantees and obligations for providing loans to calculation for IFRS (IFRS) 9. As a result during the project reserves in accounting were finished, preparation of a set of the reporting under requirements of IFRS 9 is configured, the functionality of the analysis of a change in provisions is implemented.

We were convinced of reliability of Diasoft as technology partner during long-term cooperation therefore surely started implementation of this project within entry into force of IFRS 9. We implemented all stages of the project together with a command of Diasoft, used the iterative approach in development process. As a result we not only implemented the necessary volume of completions on the entered methodology for observance of requirements of IFRS 9, but also received the automated reporting of disclosures within IFRS 9 which, in addition, represents the tool for detailed detailing allowing to estimate the reasons of change of settlement value of reserves, to carry out component analysis of changes for the reporting period told Elena Minduksheva, the deputy finance director IIB

The implemented functionality for support of IFRS 9 is special and completely there corresponds to the advanced methodology the IIB. I will note that our colleagues from IIB always monitor trends regarding providing the reporting and at once implement required standards, keeping not only procedural shape, but also use of modern and convenient tools for preparation of the reporting, noted Nikolay Makarevich, the board member, the area director "The solutions BI, accounting and the reporting of" Diasoft company

2017: Automation of a system of preparation of the management reporting based on the uniform corporate data warehouse

On October 03, 2017 the Diasoft company and the International Investment Bank (IIB) announced end of the BI project, the first in the history of bank, during which the system of preparation of the management reporting based on the uniform corporate data warehouse is automated.

In implementation process of the first large-scale implementation project of the Flextera platform in bank reporting according to IFRS was automated. Then the corporate data warehouse in which information on all banking activities from the accounting system accumulated was created. It allowed to refuse several sources which resulted in mismatch of identical indicators in reports of different departments.

International Investment Bank (IIB) (2017)

The successful experience of cooperation IIB and Diasoft became the base for the subsequent development of the relations and implementation of the BI project regarding the management reporting. Commands of bank and developer were faced by a task to add and enrich the existing data model according to effective objectives and to develop report forms for carrying out the analysis of activity of bank and information support of management decisions.

IIB representatives of three blocks – credit and investment, financial and compliance became the main project participants from outside. Each division was faced by the purposes on preparation of the reporting.

The financial department as the main customer of the reporting was most deeply submerged in the project and showed the largest growth of efficiency of activity. Based on internal testing of costs of the financial block regarding formation of data by the management reporting were reduced by 90%. Instead of one working day for calculation of KPI bank the command spends IIB one and a half-two hours. The credit and investment block notes increase in degree of trust to information in reports. First of all, it is promoted by the fact that reports are based on the clear principles and on the basis of information which arrives directly from the accounting system. Besides, as a result of project implementation the management received an important source of information on by what level compliance risks is characterized balance of bank, both taking into account a remaining balance for specific date, and on the basis of turnovers in the separate directions of business.

"The following task for us is automation of financial forecasting and modeling of our activity. We very much well automate "fact", but preparation of "plan" is a handwork. Most likely, gain of forecast component that, of course, cannot but be reflected in all complex of the analytical reporting will become a natural stage of development of our analytical systems". Dmitry Bocharov, director of the department of information technologies of the International investment bank