Temenos Transact
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Introduction to Multi-GAAP
Temenos Transact complies with the specific accounting policies and procedures required by International Financial Reporting Standards (IFRS). It also supports reporting based on local or other GAAPs (Generally Accepted Accounting Principles) which are the standards set by a country’s regulator or accounting standards body. This is termed as Multi-GAAP.
The functionality aims at having a common base for all the entries generated by the system according to the different GAAPs. The entries can be fetched from the common base maintained whenever required for the purpose of reporting, which can be displayed or suppressed as per the requirement of a report.
A bank collects a charge while disbursing a loan to a customer. As per the local GAAP of the country, this charge must be charged to the revenue when the loan is disbursed. However, if the bank has to follow the reporting as per the IFRS standards, the charge collected needs to be amortised over the term of the contract. In this case, the bank has to prepare the financial statements following the local GAAP of the country according to the IFRS standards.
There are two solutions to Multi-GAAP within Temenos Transact:
- A manual process, where entries are entered into the system using the
FUNDS.TRANSFERandDATA.CAPTUREapplications. - System generated entries, using API routines to calculate positions for IAS GAAP. This is detailed under the IAS GAAP feature.
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