IFRS Netting Compliance
A major investment bank asked our team to resolve persistent balance sheet error issues occurring in its year-end financial statements.
Our client was experiencing balance sheet presentation errors caused by IFRS Netting/Offsetting issues which were highlighted during a drive to maximise accounting offsetting opportunities. Our team was asked to remediate the problems, address the root causes and strengthen the underlying controls framework.
Our team worked closely with the bank’s Legal Entity Controllers, Accounting Policy and Global Product Controllers to capture and prioritise issues and understand root causes before planning actions to minimise the chances of these issues reoccurring in the future.
As well as redesigning the bank’s issue management and IFRS netting processes, we also redefined roles and responsibilities for data providers and conducted a Training Needs Assessment to identify, and fill, any knowledge gaps. Once complete, we turned our focus to redesigning and implementing the enhanced governance framework.
Our client was delighted to benefit from improved processes for identifying and implementing netting opportunities and the increased level of confidence felt by Compliance around Accounting Standards. Roles and responsibilities for IFRS were clarified and vast improvements were made to the knowledge of IFRS Netting and the differences between US and UKGAAP within the bank.