Banking and Professionals of the Financial Sector (PFS): Case Study

IFRS impact analysis and implementation assistance for a Luxembourg bank

The issue

The Luxembourg regulatory authority CSSF has issued a circular requiring all Luxembourg based banks to produce prudential reporting under IFRS from 2008 on using XBRL. The Bank furthermore requested advice on the implementation of the new reporting requirements. Having decided to implement FRS Data Foundation, the client needed assistance in preparing the configuration files.

Our approach

In order to facilitate the adoption, by the Bank, of the new IFRS accounting procedures, the Bank identified a list of categories, corresponding each to a set of banking transactions. For each transaction category, PwC organised working sessions with representatives from the Bank and from PwC in order to understand the current procedures, discuss the IFRS impact and agree on the new IFRS procedures to be implemented.

With regard to implementation advice, PwC assisted in workshops with the external software supplier FRS. PwC assisted the Bank in the functional mapping of the data fields as a preparation task for the configuration of the FRS Financial Reporting Solution.

The outcome

PwC delivered papers for accounting procedures on each transaction category including IFRS options on which the client had to take a decision. The advice on implementation issues and the functional data field mapping were also instrumental to project success as the client did not have internal know-how to perform this task.