Frequently Asked Questions On COREP Software Answered!
COREP has been implemented recently as per the guidelines of the European Union in financial companies in the Ireland and UK. However, there are still some firms that are ignorant of the the reporting model and how it can affect the industry with its CRD IV legislations.
If you have some confusions regarding the software, below given are some FAQ's which throw light on the common reporting standards and how they are used by financial analysts and firms along with iXBRL Accounts.
What is COREP?
COREP is common reporting standardized framework. It has been issued by the European Banking Authority also known as EBA for capital requirement directive reporting.
What does the reporting framework cover?
The common reporting standard covers credit risks, market risks, capital adequacy ratios and operational risk. What does the common reporting framework do? The revised framework is designed to see that financial consistency is maintained in the regulatory reporting of the financial and capital information. It covers and works on risk types(Market, Credit and Operational), group solvency, financial security and immovable property.
When did it come into effect?
COREP, as directed by the FSA will have to be used in all the organizations in the UK from 1-07-2013 in their statutory reports. Banks, financial firms, financial analysts, accountants, etc have already started working on the reporting framework with the support of XBRL and iXBRL Accounts.
How will it affect the generation of reports?
With the introduction of common reporting, the quality and strength of the data will increase for large banks. The ability to generate more reports frequently will also be enhanced.
If COREP is difficult to implement for a firm, what are the options?
The firm can either invest in training of personnel and conversion software or choose to outsource the COREP project to specialized firms which have the necessary data and infrastructure ( trained specialists and software) to handle it with necessary templates.
It is very important to assign such complicated projects to a professional firm rather than indulging in it yourself.