Basel-II News

Volkskreditbank selects FERNBACH to modernise accounting procedures and ensure compliance with Austrian GAAP and IAS/IFRS

( March 01,2007) – Austrian Volkskreditbank AG (VKB-Bank) has chosen FERNBACH, a leading supplier of software solutions for IFRS compliance and Enterprise-wide Value & Risk Management, to modernise and rationalise their financial accounting system by installing FlexFinance Accounting. FERNBACH’s software solution enables the VKB-Bank to prepare their balance sheets in compliance with both the Austrian GAAP and the International Financial Reporting Standards (IFRS).Based on one single software program and data set, FlexFinance Accounting puts industry-standard methods in place which fulfil the requirements of both the Austrian GAAP and the IFRS.

Mr. Wurm, Director of the Board of the VKB-Bank, said, ”FlexFinance Accounting will provide us with a system which enables us to modernise our accounting processes, in accordance with Austrian GAAP, by using state-of-the-art technology while letting us introduce IFRS in parallel. The VKB-Bank will therefore be well-equipped to tackle the challenges for accounting and bank management which IFRS compliance has posed.”

Dr. Bocksrucker, functional project leader at VKB-Bank said,”In accordance with our motto, ‘A bank in motion’, VKB has met the challenge to change its accounting to IFRS. This step has also provided the basis for an optimisation of processes with regard to speeding up the preparation of statements and optimising data quality and source systems. With FERNBACH and FlexFinance, we found a partner providing strong banking expertise, high project transparency and not least, compelling standard software.”

The vast scale of the banks original project will be greatly reduced by using the FlexFinance IFRS accounting logic, which uses a set of pre-defined accounting proposals which are consistent with the Best Practice Methods of numerous FERNBACH projects such as Commerzbank, ICBC (Asia), and DekaBank, amongst many others. FlexFinance Accounting uses raw data, not necessarily already pre-processed specific to Austrian GAAP or the IFRS by the banks’ operating delivery systems. Raw deal data can be delivered to the Data Management Suite (DMS) in line with VKB-Bank requirements, directly from the host.

Paul Rothenberger, management board for FERNBACH-Software AG, said, ”VKB-Bank has taken on board all of the advantages possible of the FlexFinance capacity for drawing up parallel balance sheets. While other institutions approach IFRS using transitional solutions, VKB-Bank is setting up a strategic audit-oriented and sustainable solution from the beginning.”

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