Accounting
Support for the accounting functions
The complete coverage of the activities that support the management of the investments consists of, after the Back Office processes, the generation of highly personalized outputs, able to feed the company’s accounting system and to satisfy the informative requirements of the audit. With Sofia it is possible to manage both single and multi-currencies accounting.
Sofia modules:
The link with the company’s accounting system is obtained by inserting in the application one or more charts of accounts that are based on specifications supplied by the Customer, and via the personalized export of the accounting entries. Each portfolio is divided into sections that group together the financial instruments to which are applicable the local or IFRS evaluation rules. To each section it is possible to link a chart of accounts that allows the association of specific accounting codes to every transaction. A transaction already registered and subsequently modified, can be automatically corrected at an accounting level via the management of the statuses of the transactions to be corrected. With Sofia it is also possible to simultaneously extract, onto distinct files, the accounting of several companies. A status is associated to each transaction that indicates the level of certification. Before being transmitted to the company’s accounting system, the entries generated by single transactions can be controlled by means of the usual analysis instruments of Sofia.
By using the Special Ledger it is possible to memorize all the confirmed journals, to extract the balance sheets (organized by financial instrument or by account), and to produce control reports with the entries present in the accounting system of the company.
This module allows the users to generate simulated closing journals and to export them through the personalized export already used for General Accounting.
Structural elements
In order to allow the management of specific features linked to the French insurance accounting legislation, some structural elements have been developed into Sofia, in accordance with the provisions of the “Code des assurances”, “Code de la mutualité” and “Code de la sécurité sociale”. Sofia manages the French chart of accounts as established by the ‘Art. A343-1 of the “Code des assurances” for all the asset types managed in Sofia.
Among the available functionalities the calculation of the amortizing cost (surcote/décote) and the rappresentation of the book values: “Valeur Brute” and “Valeur Nette Comtable” of the assets are particularly relevant.
Pledge management (nantissement) for the reinsurances given and received is also included.
A dedicated environment in the asset database identifies the necessary information to the assets classification depending on the classification detailed in “Art. R332-2” of the “Code des assurances (R931-10-21 code de la sécurité sociale, R212-31 code de la mutualité)”, useful to generate the mandatory documentation to be provided to ACPR. This module also allows to automate the management of the “Réserve de Capitalisation” based on the realized profit and loss calculation. Other already existing features are also useful to calculate the “Provision pour Dépréciation Durable (PDD)” and the “Provision pour Risque d’Exigibilité (PRE)”.
Reporting
Besides the QRTs required by Solvency II directories (EIOPA), it is possible to extract from Sofia mandatory documents to be provided to the “Autorité de Contrôle Prudentiel et de Résolution (ACPR)”
The current available documents, updated according to the last version published on the APCR website, are:
- Les états trimestriels, tableaux T2 et T3
- Le tableau complémentaire aux états de placements (TCEP), used as a basis to produce:
- l’état détaillé des placements (EDP)
The documents mentioned above can be automatically extracted according to the accounting data available into the Accounting Sofia module.
In the framework of Solvency II directories (2009/138/EC) emitted by EIOPA, several modules are available in Sofia in order to follow the requirements of the three pillars of the norm.
PILLAR I: SCR CALCULATION
Quantitative requirements, concerning equities and technical provisions calculation
This module allows to calculate the Market Risk on assets based on the standard formula, according to what is required by the Pillar I of Solvency II regulation. This module provides a fast calculation instrument that allows the continuous monitoring and in real time of the SCR. The calculation can be launched on a portfolio or on a portfolios group and can be planned in order to daily control the evolution of several factors. The calculation function is linked to the Look Through Sofia module, therefore it is possible to calculate the regulatory capital obtained by exploding or not exploding the funds.
PILLAR II: DATA QUALITY CHECKS
Requirements concerning organization and governance
A specific module dedicated to data quality check is available in Sofia. This module allows to automatically perform consistency and completeness data checks, based on a macro system. The results of the detected anomalies are listed and archived in a dedicated environment. A standard checks kit is provided with the module. Then, users can freely add customized checks suitable for their needs. Thanks to this module it is possible to preserve the adequacy, exhaustivity and accuracy of the information registered in Sofia.
PILLAR III: PRODUCTION OF QUANTITATIVES REPORTING
QRT requirements concerning prudential information and publications.
Sofia module allows to produce the following quarterly and annual reports on assets: S.06.02, S.07.01, S.08.01, S.08.02, S.09.01, S.06.03, S.10.01 and S.11.01.
The user, once defined some basic parameters as the portfolios perimeter, the ratings to take into account or the prices to use, can obtain in a few clicks the values required by EIOPA. The results obtained can then be exported in Excel, CSV or ASCII format.
If needed, it’s possible to develop personalized exports based on the clients requirements.