This process provides full subledger capabilities for financial instruments with parallel valuations against different national and international accounting standards. Operational business events are processed and special subledger entries are created.
Standard methods are available for valuing financial positions, taking into account fair value (unrealized gain/loss), amortized cost, accrual of interest and fees, deferral, cost or market multiple and moderate undervaluation, foreign exchange and hedge adjustment. External pricing tools can be integrated for valuing specific financial instruments (e.g. exotic options). The results of subsidiary ledger entries are aggregated according to the level of detail of the general ledger; parallel ledgers in the general ledger can be recorded to produce journal balances, financial statements and profit and loss statements.
The results of aggregate financial transaction data are transferred to Business Intelligence to create notes and financial statements for legal entities. In Business Intelligence, data from non-bank-specific activities are added to provide a complete financial picture of the bank.