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EP1247224A4 - Moteur de conversion et systeme d'etablissement de rapports financiers a l'aide dudit moteur - Google Patents

Moteur de conversion et systeme d'etablissement de rapports financiers a l'aide dudit moteur

Info

Publication number
EP1247224A4
EP1247224A4 EP00986381A EP00986381A EP1247224A4 EP 1247224 A4 EP1247224 A4 EP 1247224A4 EP 00986381 A EP00986381 A EP 00986381A EP 00986381 A EP00986381 A EP 00986381A EP 1247224 A4 EP1247224 A4 EP 1247224A4
Authority
EP
European Patent Office
Prior art keywords
entries
gaap
joumal
conversion
journal
Prior art date
Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Ceased
Application number
EP00986381A
Other languages
German (de)
English (en)
Other versions
EP1247224A1 (fr
Inventor
James B Maguire Iii
Jun Iwata
Thomas Nichols
Jay Cleary
Maurice Houiex
Current Assignee (The listed assignees may be inaccurate. Google has not performed a legal analysis and makes no representation or warranty as to the accuracy of the list.)
Sumitomo Mitsui Banking Corp
Original Assignee
Sumitomo Mitsui Banking Corp
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Sumitomo Mitsui Banking Corp filed Critical Sumitomo Mitsui Banking Corp
Publication of EP1247224A1 publication Critical patent/EP1247224A1/fr
Publication of EP1247224A4 publication Critical patent/EP1247224A4/fr
Ceased legal-status Critical Current

Links

Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance

Definitions

  • the present invention generally relates to a financial reporting system and method and, more particularly, to a financial reporting system and method that generates financial statements for different reporting standards.
  • a financial reporting system for a business is generally composed of different applications.
  • these applications may include a general ledger application and a loan-processing application.
  • GAAP refers to the set of rules, convention, standards, and procedures for reporting financial information. US GAAP, for example, are established by the Financial Accounting Standards Board (FASB). Differences generally exist between the GAAP of different countries. In view of the multinational environment in which many businesses operate, it would be desirable to provide a financial reporting system and method that accommodates differences between the GAAP of different countries.
  • a management system includes a computer-implemented routine for accessing journal entries stored in a computer-readable memory and a computer-implemented journal entry generating routine for automatically generating journal entries for a first set-of- books and for a second set-of-books based on the accessed journal entries.
  • the journal entries for the first set-of-books are in accordance with a first reporting standard and the journal entries for the second set-of-books are in accordance with a second, different reporting standard.
  • the management system and method described herein provides a single workflow that may be applied to converting a book of original entries in one accounting system to another reporting book in a different accounting system.
  • the system and method allow a user, for example, to set up the accounting method of various items according to any country's GAAP.
  • the management system and method described herein provide an automated conversion engine for loan transactions.
  • the conversion engine processes transactions from a lending application and applies a series of rules that automatically generates journal entries that accommodate the differences between US GAAP and Japanese (JP) GAAP.
  • JP GAAP Japanese
  • non- refundable fees associated with a term loan agreement are deferred and amortized over the life of the loan.
  • JP GAAP such fees are treated as immediate income.
  • the commercial lending application When a transaction for an up-front fee payment is entered into a commercial lending application for US GAAP, the commercial lending application generates the entries to defer the fee and amortize it.
  • conversion engine of the present invention detects these transactions, it reverses
  • the conversion engine is configured to perform similar conversions based
  • FIGURE 1 is a simplified block diagram of a conversion system 10 in
  • FIGURE 2A shows the general architecture of the financial reporting
  • FIGURE 2B is a flow chart for the conversion engine.
  • FIGURE 2C illustrates accounting and descriptive Flexfields.
  • FIGURE 3 illustrates a computer system 200 suitable for implementing a
  • FIGURE 4 is a flowchart illustrating GAAP conversion by conversion engine 108 for an Upfront fee.
  • FIGURE 5 is a flowchart illustrating the preparation of Conversion journal entries for an Upfront Fee.
  • FIGURE 6 is a flowchart illustrating Program 1 for preparing a
  • FIGURE 7 is a"flowchart illustrating Program 2 for preparing a
  • FIGURE 8 is a flowchart illustrating Program 3 for preparing a Conversion journal entry (Fee Recognition) for an Upfront Fee.
  • FIGURE 9 is a flowchart illustrating GAAP Conversion for Loan Held for Sale and Trading Loan.
  • FIGURE 10 is a flowchart illustrating GAAP Conversion for SBLC Sold.
  • FIGURE 11 is a flowchart illustrating preparation of a Conversion journal entry for SBLC sold.
  • FIGURE 1 is a simplified block diagram of a conversion system 10 in accordance with the present invention.
  • Conversion system 10 includes a conversion engine 12 that is supplied with data records. These data records may
  • each of these records comprises one or more fields that together constitute the record.
  • the fields may include one or more fields for specifying information about banking facility from which the record originated (e.g., facility type identifier (national, international), branch identifier, department identifier, etc.), one or more fields for specifying information about the customer associated with the record (e.g., customeridentif ⁇ er), and one or more fields specifying the nature of the transaction (loan, standby letter of credit, etc.).
  • Conversion engine 12 selectively processes these data records in accordance with rules contained in a rules database 14.
  • the processing is selective in the sense that conversion engine examines a certain one or more of the fields in the data record to determine whether a rule for "converting" the data record exists in rules database 14.
  • the rules in rules database 14 are used to "convert" the data records to take into account different treatments of the data contained in the data records by different regulatory authorities, different taxing authorities, different statutory accounting requirements, different generally
  • non-refundable fees associated with a term loan agreement are deferred and amortized over the life of the loan.
  • such fees are treated as immediate income.
  • a commercial lending application used by a US-based financial institution typically generates a data record for such a loan agreement in which the non-refundable fees are deferred and amortized.
  • a data record for an up-front fee payment is supplied to conversion engine 12.
  • This data record in which the non-refundable fees are deferred and amortized is sent to a US Set of Books (SoB) 16-1 via conversion engine 12.
  • Conversion engine 12 replicates this data record for a JP SoB 16-2 and determines whether any rules in rules database 14 are applicable to the data record.
  • a non-refundable fee associated with a term loan agreement is treated as immediate income.
  • rule exists in rules database 14 for reversing the deferral reflected in the corresponding data record in US SoB 16-1 so that the fee is treated as income for purposes of JP GAAP. Conversion engine 12 also reverses any subsequent amortization because the fee has already been recognized.
  • the data record
  • JP SoB 16-2 is in accordance with JP GAAP.
  • Conversion engine 12 may also be configured to generate data records for an Adjustment SoB 16-3 that reflect the adjustments made by conversion engine
  • Adjustment SoB 16-3 is used to retain an audit trail and to summarize the cumulative adjustments for subsequent review by controllers, auditors, examiners, etc. Together US SoB 16-1, JP SoB 16-2, and adjustment SoB 16-3 serve as the
  • Conversion engine 12 may be used without limitation to generate data records for other SoBs as suggested in FIGURE 1.
  • conversion system 10 may be used in connection with a commercial lending system, a deposit system, a treasury system, a trade finance system, an accounts payable system, an inventory system, or an accounts receivable system.
  • a detailed description is provided of a conversion engine used in connection with a commercial lending system. This detailed description is provided by way of illustration, not limitation.
  • the conversion engine described below is typically provided as one component of a management system for a particular business such as a bank.
  • This management system may include various commercially available software applications and the conversion engine described herein interfaces with (perhaps
  • the conversion engine of the present invention may be effectively utilized with many different software applications that together make up a management system for a particular business.
  • the conversion engine described herein is utilized with a
  • LS2TM commercial lending application
  • LS2TM also known as Loan
  • a commercially available commercial lending application 102 (such as the above-mentioned LS2 commercial lending application) generates journal entries based on the transactions initiated by its users.
  • Commercial lending application 102 may have its own chart of accounts and populates the journal entries to a table such as an Oracle GL-Out Table. For US-based institutions, these journal entries will typically conform to US GAAP.
  • journal entries are sent through a middleware application 106 (such as the above- mentioned NEON MQSI software) to an interface table 108 of a general ledger application (such as the above-mentioned Oracle GL software).
  • a middleware application 106 such as the above- mentioned NEON MQSI software
  • a general ledger application such as the above-mentioned Oracle GL software
  • ledger software for example, there is no conversion of the data in the journal entries by middleware application 106 other than perhaps converting from LS2 GL account to Oracle GL account numbers.
  • Each journal entry has an Accounting Flex Field (AFF) and a Descriptive Flex Field (DFF).
  • AFF Accounting Flex Field
  • DFF Descriptive Flex Field
  • the AFF is made up of a
  • Every journal entry has an AFF composed of these elements.
  • the DFF is context-sensitive, i.e., the elements thereof depend on the type of journal entry. While every journal entry has a descriptive flex field, the elements thereof vary based on the type of journal entry. Examples of elements that may be included in the DFF for a particular type of journal entry include Risk Type, Customer Number, Security IDs, Product and Portfolio. As will be explained below, Portfolio plays a role in the conversion
  • an automatic import procedure imports the joumal entries into US SoB 110.
  • the imported journal entries may be grouped together using a joumal entry
  • Conversion engine 108 is provided with the following logic functionality:
  • Selective Conversion - Conversion engine 108 is configured to sift
  • Minimum/Maximum Logic - Conversion engine 108 is provided
  • Cross-Referencing - Conversion engine 108 is configured to
  • conversion engine 108 determines whether any rules in a rules database associated with conversion engine 108 are applicable to the replicated joumal entries.
  • these rules are organized into two database tables: an exclusion rules table and a reclassification rules table.
  • the exclusion rules in the exclusion rule table reverse joumal entries or exclude them from the target set of books and the reclassification rules in the reclassification rules table change or substitute items in the AFF (e.g., the GL Account).
  • conversion engine 108 applies these rules so that the joumal entries in JP SoB 114 are in accordance with JP GAAP. Conversion engine 108 also makes appropriate journal entries to an adjustment SoB 112. Adjustment SoB 112 is used to retain an audit trail and to summarize the cumulative
  • Adjustment SoB 112 is further supported by comprehensive audit trail conversion
  • Manual journal entries may be passed to adjustment SoB 112 and JP SoB 114 to accommodate those transactions not covered by the conversion rules in the rules database associated with conversion engine 108.
  • Manual joumal entries are implemented by constructing an interface that permits a user to
  • conversion engine 108 is a rules-based engine that selectively
  • the conversion engine is a single flow process in that
  • Conversion engine 108 may be implemented using Oracle WorkflowTM.
  • Oracle Workflow permits users to define and automate business processes, each
  • Oracle Workflow Builder is a tool that permits users to create
  • Workflow Engine monitors workflow states and coordinates the routing of
  • An "activity" in a process definition can be an automated
  • a workflow process is initiated when an application
  • the Oracle Workflow Engine divides the relevant work item defined
  • the Workflow Engine performs automated steps
  • Oracle Workflow Builder business processes for implementing a conversion engine in accordance with the present invention.
  • the LS2 commercial lending application may run on an IBM 3272.
  • Oracle Financial Statement GeneratorTM is a report- writing tool that
  • This tool allows users to develop various reports without programming. This tool may sit
  • ATX operating system This tool can be used, for example, to present financial
  • NEONTM MQSI software may be used as a middleware tool to
  • the NEON software may
  • middleware tool is twofold: (1) LS2-to-US GAAP, which requires no data
  • FIGURE 2B illustrates a system flow chart for conversion engine 108.
  • a batch file 120 of accumulated journal entries is sent through middleware
  • the trigger invokes a Journal Import routine 124 that directs batches to
  • This alert triggers a PL/SQL package that constitutes conversion engine
  • SoB 114
  • the Oracle tables used in conversion engine 108 are:
  • GL JE SOURCES GL_JE_BATCHES, GL_JE_HEADERS, GLJEJJNES, GL_JE_CATEGORJES, and GL_JE_SOURCES are used to get the
  • Table 130 stores adjustment names, rule type
  • Conversion engine 108 uses the data in this table to
  • Conversion engine 108 determines
  • SUMI_RULE_EXCLUSIONS table 136 contains those joumal entry
  • SUMI_RULE_RECLASS table 140 contains those journal entry categories
  • journal entry category also contains flags for adjustments to be omitted based on a journal entry category
  • This table is used with a table 142 called SUM NAT.ACCT.
  • SUMI_NAT_ACCT table 142 is used in conjunction with SUMI_RULE_RECLASS table 140 and contains accounts to be substituted by the reclass rule.
  • the table contains the 'source' Natural Account Segment and the 'target' (adjustment) Natural Account Segment, HO CODE segment, and BRANCH CODE segments.
  • journal entry category of the replicated joumal entry exists in SUMI_RULE_RECLASS, there is a different treatment in US and JP GAAP. If the joumal entry category is found, conversion engine 108 evaluates the SUMI_NAT_ACCT table 142 for the corresponding adjustment account and an adjustment is made at 144. Together, these tables are used to re-map the GL accounts used in the original entry into a different account in JP SoB 114.
  • WF_ENGE E uses the WF_ENGINE, Get_Item_Attribute_Number to get the relevant Batch attributes of the batch
  • WF_CORE is used for context details
  • FND_GLOBAL is used to initialize the import program parameters
  • FND_REQUEST is used to submit the import
  • the charts of accounts of Oracle GL are comprised of two components: account captions (horizontal) and key segments (vertical). These key segments in Oracle's applications are referred to as "FlexFields". As mentioned above, there are two types of FlexFields: Accounting (required) and Descriptive (optional). Defining the format of the FlexFields before implementation is a minimum requirement. Since neither Accounting nor Descriptive FlexFields are generally
  • a predetermined character string (e.g. 00) may be used to indicate
  • the department has a department code assigned.
  • the first character denotes a
  • Accounts are grouped by product type and a value is assigned for each of the accounts.
  • the following data component in the LS2 GL Entry Table is used by conversion engine 108: GLE_CDE_BUS_TRAN - Business transaction associated with the transaction.
  • FIGURE 3 illustrates a computer
  • system 200 includes a processing unit 203 and a system memory 205.
  • a system bus 207 couples various system components including system memory 205 to processing unit 203.
  • System bus 207 may be any of several types of bus structures including a memory bus or memory controller, a peripheral bus, and a local bus using any of a variety of bus architectures.
  • System memory 207 includes read
  • ROM read only memory
  • RAM random access memory
  • BIOS basic input/output system
  • Computer system 200 further includes various drives and associated computer-readable media.
  • Hard disk drive 209, magnetic disk drive 213, and optical disk drive 217 are connected to system bus 207 by a hard disk drive interface 221, a magnetic disk drive interface 223, and an optical drive interface 225, respectively.
  • the drives and their associated computer-readable media provide nonvolatile storage of computer-readable instructions, SQL-based procedures, data structures, program modules, and other data for computer system 200.
  • program modules may be stored on the hard disk 211, removable magnetic disk 215, optical disk 219 and/or the ROM 252 and/or the RAM 254 of system memory 205.
  • Such program modules may include an operating system providing graphics and sound APIs, one or more application
  • a user may enter commands and information into computer system 200 through input devices such as a keyboard 227 and pointing device 229.
  • Other input devices may include a microphone, joystick, game controller, satellite dish, scanner, or the like.
  • processing unit 203 may be connected by other interfaces, such as a parallel port interface or a universal serial bus (USB).
  • a monitor 233 or other type of display device is also connected to system bus 207 via an interface, such as a video adapter 235.
  • Computer system 200 may also include a modem 254 or other means for establishing communications over wide area network 252, such as the Internet.
  • Modem 254 which may be internal or external, is connected to system bus 207 via serial port interface 231.
  • a network interface 256 may also be provided for allowing computer system 200 to communicate with a remote computing device 250 via a local area network 258 (or such communication may be via wide area network 252 or other Gommunications path such as dial-up or other communications means).
  • Computer system 200 will typically include other peripheral output devices, such as printers and other standard peripheral devices.
  • GAAP conversions may be viewed as being of one of three different types: a first type involving reclassifications; a second type involving more complex conversion calculations; and a third type involving manual adjustment of journal entries.
  • the first type of GAAP conversion may be implemented using Oracle Financial Statement
  • Oracle Workflow Certain loan-related Oracle AlertTM Oracle Alert's P SQL customized capabilities fees (e.g., and WorkflowTM to execute more complex routines to handle cornrnitment, GAAP conversion items that require more syndication fees) than reclassifications.
  • SFAS No. 91 Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Loans
  • SFAS No. 91 Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Loans
  • SFAS No. 91 Such nonrefundable (upfront) loan fees, including commitment fees and syndication fees, among others, should be deferred and recognized over the contractual life of the loan or facility as interest or fee income.
  • interest method is the preferred method under SFAS No. 91
  • the straight-line method is also appropriate because of immateriality.
  • Upfront loan fees are recognized as fee income when related services are provided (normally when received). No deferral or amortization of these fees as
  • a code may be used to differentiate loans issued at par from those at discounts or premiums. For example, if the LS2 loan processing application is used, the "Portfolio Code” may be used for differentiation. “LOANPAR” may be used for loans issued at par, “DISCPREM” for loans issued at a discount or
  • the LS2 commercial lending application computes amortization of upfront loan fees based on the straight-line method.
  • the LS2 commercial lending application allows its users to defer and amortize upfront fees as an adjustment to yield or fee income in accordance with FASB Statement No. 91. Therefore, for JP GAAP reporting purposes, the deferral and amortization should be reversed and adjusted to fee income when received.
  • the LS2 commercial lending application defers and amortizes as income the "price difference" of the loan (the difference between principal amount and actual price for the loan origination or purchase) as position discount or position premium together with deferred upfront fee income.
  • Position Discount or Premium Position account calculated by the LS2 commercial lending application represents "Upfront Fees" that should be recognized as income immediately under JP GAAP.
  • Position Discount or Position Premium account calculated by the LS2 commercial lending application represents the price difference that should be deferred and amortized as income under JP GAAP as
  • loan transactions are categorized into first and second transaction types. These two transaction types are created as two different "Portfolios" in the LS2
  • the first transaction type is Loans Originated/Purchased at
  • JP SoB 114 As proper JP GAAP joumal entries.
  • conversion engine 108 receives joumal entries for Portfolio Code "Loan Originated/Purchased at Par (LOANPAR)", it prepares the following
  • Conversion engine 108 prepares Conversion journal entries for
  • Adjustment SoB 112 to credit the amount of the received upfront fee to "Upfront
  • joumal entry is prepared by the "Upfront Fee Conversion Program 3 (Fee Recognition)" to be described below.
  • Conversion engine 108 prepares JP GAAP joumal entries for JP SoB 114
  • GAAP conversion can be processed by the same logic and conversion engine.
  • Conversion engine 108 prepares Conversion journal entries for Adjustment SoB 112 to debit the upfront fee distributed to a participating lender to "Upfront Loan Fee Income” and credit the amount to "Fee Held Awaiting Disposition (FHAD)" on the date of payment. As well as receipt of upfront fee,
  • Conversion engine 108 prepares JP GAAP joumal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion journal entries. Even if reversal entries related to this business event for correction of error or cancellation are received, GAAP conversion can be processed by the same logic and conversion engine.
  • Discount Set Up Discounted of Upfront Loan Fee
  • Business Transaction Code BKRMD
  • syndication When the syndication is closed, the host bank's share of upfront fee is determined and transferred to position discount (premium) accounts, i.e. "Position Discount (DISC)", “Position Premium (PRMUM)” or "Unfunded Discount (UNFDS)” by the LS2 commercial lending application.
  • position discount premium
  • PRMUM Position Discount
  • UNFDS Unfunded Discount
  • Conversion engine 108 prepares Conversion joumal entries for Adjustment SoB 112 to debit the amount of transfer to "Position Discount (DISC)” or “Unfunded Discount (UNFDS)” and credit the amount to "Fee Held Awaiting Disposition (FHAD)". In case of premium position, the amount is credited to "Position Premium (PRMUM)” or “Unfunded Discount (UNFDS)” and debited to "Fee Held Awaiting Disposition (FHAD)”.
  • This joumal entry is prepared by "Upfront Fee Conversion Program 3 (Fee Recognition)" to be described below.
  • Conversion engine 108 prepares Conversion joumal entries for Adjustment SoB 112 to reverse US GAAP entry regarding recognition of the
  • Conversion engine 108 prepares JP GAAP joumal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion journal entries. In this case, Conversion journal entries will offset US GAAP journal entries and no joumal entries are passed to JP SoB 114. Even if reversal entries related to this business event for correction of error or cancellation are received, GAAP conversion can be processed by the same logic and conversion engine.
  • the LS2 commercial lending application prepares a US GAAP journal entry regarding amortization of discount accounts by debiting calculated amortization amount to "Position Discount (DISC)", Position Premium (PRMUM)” or “Unfunded Discount (UNFDS)” and crediting the amount to "Amort. Commitment Fee Income (ACOMF)” or "Amort. Interest Income - Orig. Fees (AINTT)”.
  • DISC State Discount
  • PRMUM Position Premium
  • UNFDS Unfunded Discount
  • ACOMF Commitment Fee Income
  • AINTT Interest Income - Orig. Fees
  • Conversion engine 108 prepares the Conversion joumal entry for Adjustment SoB 112 to reverse US GAAP journal entries regarding amortization
  • Conversion engine 108 prepares JP GAAP journal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion journal entries. In this case, Conversion joumal entries offset US GAAP joumal entries and no joumal entries are passed to JP SoB 114. Even if reversal entries related to this business event for correction of error or cancellation is received, GAAP
  • conversion can be processed by the same logic and conversion engine.
  • Conversion engine 108 prepares the Conversion journal entry for
  • Adjustment SoB 112 to reverse US GAAP joumal entries regarding the account transfer by debiting the amount to "Position Discount (DISC) - Non- Accrual” and crediting to "Position Discount (DISC) - Accmal” or debiting to "Position Discount (DISC) - Accrual” and "Position Premium (PRMUM) - Non- Accrual”.
  • This journal entry is prepared by "Upfront Fee Conversion Program 3 (Fee Recognition)" to be described below.
  • Conversion engine 108 prepares JP GAAP joumal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion journal entries. In this case, Conversion journal entries will offset US GAAP journal entries and no joumal entries are passed to JP SoB 114. Even if reversal entries related to this
  • GAAP conversion can be processed by the same logic and conversion engine.
  • Conversion engine 108 prepares the Conversion joumal entries for Adjustment SoB 112 to reverse US GAAP joumal entries by debiting "Position Discount (DISC) - Accmal” and crediting to "Position Discount (DISC) -Non- Accrual” or debiting to "Position Discount (DISC) - Non Accmal” and "Position Premium (PREM) - Accmal”.
  • This journal entry is prepared by "Upfront Fee Conversion Program 3 (Fee Recognition)" to be described below.
  • Conversion engine 108 prepares JP GAAP journal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion journal entries. In this case, Conversion journal entries offset US GAAP journal entries and no
  • journal entries are passed to JP SoB 114. Even if reversal entries related to this business event for correction of error or cancellation are received, GAAP conversion can be processed by the same logic and conversion engine.
  • GNOSL Gain on Sale
  • LSOSL Loss on Sale
  • Conversion engine 108 prepares the Conversion journal entries for
  • Adjustment SoB 112 that are necessary to adjust gain and loss on sale by the unamortized amount of discount/premium account at the time of sale.
  • the unamortized discount will be debited to "Gain on Sale (GNOSL)” or “Loss on Sale (LSOSL)” and credited to "Position Discount (DISC)” or "Unfunded Discount (UNFDS)”.
  • GNOSL Gain on Sale
  • LSOSL Low-Loss on Sale
  • PRMUM Personal Premium
  • UPFDS Unfunded Discount
  • Conversion engine 108 prepares JP GAAP journal entries for JP SoB 114 by combining (netting) US GAAP joumal entries and Conversion journal entries. Even if reversal entries related to this business event for correction of error or cancellation are received, GAAP conversion can be processed by the same logic
  • Conversion engine 108 prepares Conversion journal entries for Adjustment SoB 112 to credit "Discount Position (DISC)”or “Unfunded Discount (UNFDS)” and debit “Loss on Charge-Off (ALLOW)". For premium positions, the entry should be debited to "Position Premium (PRMUM)” or “Unfunded Discount (UNFDS)” and credited to "Loss on Charge-Off (ALLOW)”.
  • DISC Discount Position
  • UNFDS Unfunded Discount
  • journal entry is prepared by "Upfront Fee Conversion Program 2 (Charge-Off)" to be described below.
  • Conversion engine 108 prepares JP GAAP journal entries for JP SoB 114 by combining (netting) US GAAP journal entries and Conversion joumal entries. Even if reversal entries related to this business event for correction of error or cancellation are received, GAAP conversion can be processed by the same logic and conversion engine.
  • the LS2 commercial lending application also creates upfront fee related journal entries for other loan related transactions. These transactions are adjustments to and transfers between discount position, premium position, unfunded discount and related PL accounts. For JP GAAP purposes, all these
  • Table I provide sample joumal entries (Journal Entries for Upfront Loan
  • journal entry is passed to JP SoB 114 via ST 306 and ST 308 as mentioned above. If so, a Conversion joumal entry is prepared at ST 310. The details of preparing a Conversion journal entry will be discussed below.
  • JP GAAP journal entries are prepared at ST 312 based on the US GAAP joumal entries and the Conversion joumal entries.
  • the JP GAAP joumal entries are prepared by netting out the US and Conversion joumal entries and modifying the "Group ED" to "JP GAAP”.
  • the JP GAAP journal-entries are exported to JP SoB 114 at ST 314.
  • FIGURE 5 is a flowchart illustrating the preparation of Conversion journal entries for an Upfront Fee.
  • conversion engine 108 determines if the "Business Event Code” is "PLSAD" (Sale of Loan). If so, the Conversion journal entries are prepared at ST 404 using Program 1 (Sale). If not, conversion engine
  • Conversion engine 108 converts journal entries on only accounts related to deferral and amortization of Upfront Loan Fee ("Upfront Fee Related Accounts"). Illustrative "Upfront Fee Related Accounts" in one implementation of the LS2 commercial lending application are listed in Table Et below. The business transaction codes that are affected by GAAP Conversion are also listed.
  • conversion engine 108 extracts all the entries to the "Upfront Fee Related Accounts" in US GAAP joumal entries. Conversion engine 108 then reverses these entries and posts the net amount to "Gain on Sale of Loan” or “Loss on Sale of Loan” as an adjustment to these amounts. Accordingly, "Dr/Cr Indicator" of all the US GAAP joumal entries to the "Upfront Fee Related Accounts” should be reversed and net amount entered as debit or credit account of "Upfront Fee Income” to balance the Conversion joumal entries.
  • FIGURE 6 is a flowchart illustrating Program 1 for preparing a Conversion joumal entry (Sales) for an Upfront Fee.
  • DR/CR Indicator and the Amount of US GAAP entries for Upfront Fee Related Accounts are extracted from the US GAAP journal entries.
  • the DR CR indicator of Upfront Fee Related Accounts are reversed.
  • the net amount of Upfront Fee Related Accounts is calculated and, at ST 508, the DR/CR indicator and amount of US GAAP entries for gain or loss on sale accounts are extracted from the US GAAP journal entries.
  • GNOSL Gain on Sale
  • LOSL Liss on Sale
  • GNOSL Gain on Sale
  • LOSL Loss on Sale
  • DISC Position Discount
  • UNFDS Unfunded Discount
  • the US GAAP joumal entry is normal sale transaction, the adjustment amount should be credited to "Gain on Sale (GNOSL)" and “Loss on Sale (LSOSL)” and debited to "Position Discount (DISC)” or "Unfunded Discount(UNFDS)” to prepare the Conversion joumal entry. If the US GAAP joumal entry is a reversal of original sale transaction for
  • GNOSL Gain on Sale
  • LOSL Liss on Sale
  • DISC Position Discount
  • conversion engine 108 In order to prepare Conversion journal entries, conversion engine 108
  • FIGURE 7 is a flowchart illustrating Program 2 for preparing a
  • conversion engine 108 In order to prepare Conversion journal entries, conversion engine 108
  • Conversion engine 108 Conversion engine 108
  • FIGURE 8 is a flowchart illustrating Program 3 for preparing a
  • DR/CR Indicator and the Amount of US GAAP entries for Upfront Fee Related Accounts are extracted from the US GAAP joumal entries.
  • GAAP AICPA's Guideline
  • a user may chose an accounting method for
  • JP SoB 114 no JP GAAP journal entries are submitted to JP SoB 114.
  • Conversion engine 108 prepares Conversion journal entries to reverse US GAAP journal entries regarding posting and reversing LOCOM valuation loss. These entries are prepared by reversing all the "DR/CR Identifier" of US GAAP
  • journal entries related to LOCOM valuation journal entries related to LOCOM valuation.
  • GAAP requires no LOCOM valuation for loans.
  • Table TV shows sample joumal entries (Journal Entries for Loan Held for Sale) and FIGURE 9 is a high level flowchart (GAAP Conversion for Loan Held for Sale and Trading Loan).
  • the LS2 commercial lending application records MTM revaluation gain/loss via end of day batch entry ("EOD Batch Entry”) by posting life-to- date unrealized gain/loss on Trade Date Available Position and Open Sale
  • Conversion engine 108 prepares Conversion journal entries to reverse US GAAP joumal entries regarding posting and reversing MTM valuation gain/loss. These entries are prepared by reversing all the "DR CR Identifier"
  • Table V shows sample joumal entries (Journal Entries for Trading Loan) and FIGURE 9 shows the high level flowchart (GAAP Conversion for Loan Held
  • Adjustment SoB 112 and JP SoB 114 without modification except for "Group ED".
  • the "Group ED” for “US SoB” is “US GAAP”; however, this is replaced with “Conversion” for Adjustment SoB.
  • the LS2 commercial lending application originates journal entries for SBLCs and Guarantees as memorandum entries in accordance with US practices. To comply with JP GAAP, these entries are reclassified into balance sheet entries.
  • JP GAAP treatment is basically consistent with US GAAP treatment. However, some MIS systems may be designed to record the LC sold amount
  • Conversion engine 108 prepares Conversion joumal entries to separate the sold amount included in "LC Principal Offset (LCCON)" and record the amount
  • Table VI shows sample journal entries (Joumal Entries for SBLC Sold).
  • FIGURE 10 is a flowchart showing GAAP Conversion for SBLC Sold.
  • FIGURE 11 is a flowchart illustrating preparation of a Conversion joumal entry for SBLC sold.
  • the DR/CR indicator and the amounts of the US GAAP journal entries for Account #291501, 292502 or 293501 are extracted.
  • a journal entry for LC Outstanding Offset (491001) is prepared by assigning Account number 491001, assigning the extracted amount and assigning the extracted DR/Cr indicator.
  • Sold Offset (491501) is prepared by assigning Account number 491501, assigning the extracted amount and reversing the extracted DR/CR indicator. At ST 1008, all other information for the journal entries (other than DR/CR indicator, Account
  • loan balances are presented at principal amount. Premium and discount are presented as prepaid expenses and unearned income, respectively, (separate balance sheet item) rather than a deduction from loan balances.
  • the LS2 commercial lending application has separate GL accounts for premium and discount on loan in addition to an account for principal amount.
  • JP GAAP and US GAAP financial statements can have different summarization of accounts because the General Ledger system will have separate SoBs for JP GAAP and US GAAP, respectively.
  • the General Ledger system compiles JP GAAP financial statement based on JP SoB 114, premium and discount on loan will be included in "Prepaid Expenses" and "Unearned Income", respectively.
  • the General Ledger system compiles US GAAP financial statement based on US SoB 110, premium and discount on loan will be deducted from "Loan" balance.
  • Allowance for loan losses should be deducted from loan principal amount for US GAAP financial statement presentation.
  • Allowance for loan losses are separate balance sheet items (liability account) for JP GAAP financial statement presentation.
  • the LS2 commercial lending application has a separate GL account for allowance for loan losses in addition to an account for principal amount.
  • JP GAAP Separate balance sheet caption for each legal form of loan (loan on certificate or loan on notes).
  • Accmal of interest income on impaired loans is suspended in accordance with the criteria stipulated in the Japanese tax regulations. Generally, accmal is suspended on loans the principal of which are past due or the interest is past due more than six months or critical credit events.
  • the LS2 commercial lending application has separate accounts for accmal
  • the LS2 commercial lending application also reverses all the outstanding accmed interest receivable on non-accmal loans and post memorandum entries for accmed interest on the non-accmal status loans. In addition, if the facility is non- accmal status, the amortization of Position Discount/Premium will be suspended
  • Controller Department will calculate additional accmed interest
  • Direct loan origination costs will be deferred and recognized over the contractual life of the loan as an adjustment of yield using the interest method in
  • the financial reporting system and method described above provides a
  • PL/SQL procedures may be generated to implement conversions that account for

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  • Accounting & Taxation (AREA)
  • Finance (AREA)
  • Engineering & Computer Science (AREA)
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  • Economics (AREA)
  • Marketing (AREA)
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  • General Business, Economics & Management (AREA)
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  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

Système de gestion informatisé qui comporte un programme (106) permettant l'accès à des écritures de journal stockées dans une mémoire et un programme automatique de production d'écritures de journal pour une première série-de-livres (110) et pour une seconde série-de-livres (114) sur la base des écritures de journal ayant fait l'objet d'un accès. Les écritures de journal pour la première série-de-livres sont conformes à une première norme d'établissement de rapports et les écritures de journal pour la seconde série-de-livres sont conformes à une seconde norme différente d'établissement de rapports.
EP00986381A 1999-12-16 2000-12-15 Moteur de conversion et systeme d'etablissement de rapports financiers a l'aide dudit moteur Ceased EP1247224A4 (fr)

Applications Claiming Priority (5)

Application Number Priority Date Filing Date Title
US17109799P 1999-12-16 1999-12-16
US171097P 1999-12-16
US56391300A 2000-05-04 2000-05-04
US563913 2000-05-04
PCT/US2000/033904 WO2001045009A1 (fr) 1999-12-16 2000-12-15 Moteur de conversion et systeme d'etablissement de rapports financiers a l'aide dudit moteur

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EP1247224A1 EP1247224A1 (fr) 2002-10-09
EP1247224A4 true EP1247224A4 (fr) 2005-11-30

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AU (1) AU2262901A (fr)
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JP4741930B2 (ja) * 2005-06-09 2011-08-10 株式会社クラステクノロジー 勘定科目管理システム
WO2019138670A1 (fr) * 2018-01-12 2019-07-18 株式会社アトリス Système de gestion d'opération, et procédé de gestion d'opération
CN114138802B (zh) * 2021-11-29 2024-07-16 中国平安财产保险股份有限公司 数据对账方法、装置、设备及存储介质

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US4989141A (en) * 1987-06-01 1991-01-29 Corporate Class Software Computer system for financial analyses and reporting
JPH06119362A (ja) * 1992-10-07 1994-04-28 Hokuriku Nippon Denki Software Kk 仕訳方式
JP2762330B2 (ja) * 1992-10-16 1998-06-04 工研開発株式会社 経理帳簿自動記入装置
JP3942697B2 (ja) * 1996-07-25 2007-07-11 株式会社日本デジタル研究所 会計処理形態変更装置および会計処理形態変更プログラムを記録したコンピュータ読み取り可能な記録媒体
JP3914614B2 (ja) * 1996-10-08 2007-05-16 株式会社日本デジタル研究所 会計処理装置
US5966700A (en) * 1997-12-23 1999-10-12 Federal Home Loan Bank Of Chicago Management system for risk sharing of mortgage pools
JPH11338936A (ja) * 1998-05-25 1999-12-10 Nec Corp 仮払金請求精算システム及び仮払金請求精算方法

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GB2377281A (en) 2003-01-08
EP1247224A1 (fr) 2002-10-09
WO2001045009A1 (fr) 2001-06-21
JP5162063B2 (ja) 2013-03-13
CA2398606A1 (fr) 2001-06-21
GB0030681D0 (en) 2001-01-31
AU2262901A (en) 2001-06-25
HK1050746A1 (en) 2003-07-04
JP2001202458A (ja) 2001-07-27
GB2377281B (en) 2004-07-14
JP2011204253A (ja) 2011-10-13

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