General Services Provided by FAS AG for the Finance Sector

Circumstances and accounting requirements for banks and other service providers such as insurance companies, for example, differ in part substantially from those in other industries, both in the case of treatment in accordance with the German Commercial Code [Handelsgesetzbuch, HGB] and in accordance with IFRS. Nonetheless, they are also frequently affected by the same or similar accounting problems. Furthermore, banks and financial service providers are also involved in transactions both of subsidiaries and portfolios, which make transaction-related valuations necessary.

Accounting Services for the Finance Sector

Besides the typical accounting topics for banks on account of IFRS 9, there are also other accounting standards that are relevant for banks. IFRS 15, revenue recognition, is an example of one that is important above all in asset management and in other service areas. Furthermore, the new leasing standard, IFRS 16, also has significance for the finance sector – it is relevant, on the one hand, for a company's own leasing activity, and, on the other, naturally, for a company's own rental and lease agreements.

In addition, it is necessary to consider the requirements on consolidation under IFRS 10, IFRS 11, and IFRS 12, and, in the area of staff remuneration, IAS 19 and IFRS 2 on share-based payments.

Valuation & Transaction Services for the Finance Sector

When a transaction is being prepared, such as the acquisition or sale of a company, valuations are necessary for a purchase price allocation in accordance with IFRS 3. A portfolio valuation is also necessary for transactions involving loans and securities. In the regular accounting, it is also necessary to allow for the evaluation of individual positions in order to verify the stated prices. Furthermore, individual valuation components such as the credit valuation adjustment (CVA) and debt valuation adjustment (DVA) and other value adjustments must be determined and designed.

FAS AG Support for Accounting, Valuation, and Transaction Issues in the Finance Sector

FAS AG advises clients of various sizes and in different sectors on all accounting issues related to the German Commercial Code [Handelsgesetzbuch, HGB] and IFRS. This lets us use our extensive, in-depth expertise to solve the problems of banks and financial service providers as well as to penetrate less finance-specific issues. In the process, we never lose sight of the fact that a sensible description is of critical importance. In the area of transaction advising and valuation, FAS AG also offers its classical services in the financial services sector, along with specific services such as the valuation of financial instruments and portfolios.

 Andreas Huthmann Managing Partner