Treasury Accounting including IAS39 Compliance

Reuters Kondor Trade Processing (KTP) supports

• A flexible accounting structure
• All types of transactions to be reported according to IAS or local requirements.
• Double accounting scheme and the system allows for two trade purposes to be managed at Book and    transaction levels, as required.
• Extensive accounting generation features and may be interfaced to any type of General Ledger.

Account Chart
• The structure of the chart of accounts is entirely customisable by the client
• The client can define as many levels as necessary for their organisation.
• The general ledger reports can be run by Business unit/ Portfolio/ Kind of market/ Accounts.
• Sorting and aggregate amounts can be customised according to user requirements. Account Breakdown
• Configuration of the Accounting Schemes is highly flexible
• May be tailor- made according to organisational requirements
• Accounting schemes are configured according to the type of financial instrument and also on other factors    such as the traded currency, the type of counterparty (resident/ non-resident), a potential existing    corporate relationship with the counterparty, the fact that a nostro or vostro account is being used etc.
• Accounting Business rules may be embedded based on event values in order to make sure that the proper    account is being used in each potential situation.

Accounting Generation Rules
• Accounting generation rules are attached to the financial events such as a swap leg payment, accounting    revaluation, margin call or basically to anything which might occur in a transaction lifetime.
• It is possible to have 'N' different specific accounting schemes for one unique financial item.
• The user can also specify if accounting entries need to be generated on certain deal types or not.

Accounting Process
The cash and security accounting processes
• Generate corresponding accounting entries according to the screen selection.
• These processes can be run on demand or batched
• They generate standard reports that can be printed or output to a file (including Excel and HTML).
• Should the accounting not be correctly balanced, an additional report is provided outlining the unbalanced    lines (e.g. currency cross rate missing).
• Customised accounting reports can also be created with the reporting tool packaged within the system.
• The system provides an 'End of Period' closing process.

Accounting Interface
The system's accounting functionality includes an interface process
• To generate any type of flat file according to the required format of the client's general ledger system.
• Generation of file relies on SQL queries and thus provides great flexibility.
• Depending on client's preference, the interface process can be automated and/or launched 'on demand'.

IAS39
Reuters KTP supports flexible accounting schema
• That allows for all types of transactions to be reported according to IAS or local accounting requirements
• That allows for different trade purposes for IAS39 (available for sale, trading, held to maturity) or local    norms to be configured at book level
• The behaviors of transactions in the different accounting processes are managed according to the trade    purpose and valuation methods and configured accordingly

For Hedge accounting, the strategy module of Reuters Kondor Trade Processing (KTP)
• Defines the relationship between underlying and hedge instruments.
• Hedge efficiency is calculated and tested according to rules configured at the strategy level (cashflow    hedge, fair value hedge, efficiency range…)
• When capturing a deal, one can assign it to an IAS strategy on a percentage basis