11.1 Overview
When a regulatory body asks a bank or financial institution to revise, make a correction, and refile the report for a prior reporting period, the Restatement Support feature can be used to correct and refile the report. In the Restatement Support feature, using data versioning property, the bank or financial institution can make the required modifications or add a few more data records to the existing report or delete the records from an existing report. The Start Date/End Date attributes of dimensions support the backdated Run execution. Default T2Ts are configured to use Latest Record Indicator to select the appropriate dimensional attributes irrespective of an execution date. Therefore, Start Date/End Date attributes need to be used while rerunning the report for a prior date. A backdated Run execution for Restatement Support is similar to a regular Run execution in OFSBCE.
For more information about Restatement and the following topics, see the Restatement Support Feature in OFSDF section in the Oracle Financial Services Data Foundation Application Pack User Guide Release 8.1.1.0.0:
- Features Supporting Restatement
- Prerequisites
- Assumptions for the Restatement Implementation
Data Identification Criteria
When the user executes a Balance Computation process for a given MIS Date, all the journal entries in the system for the said MIS Date and the Posting Date less than the MIS Date are considered for processing during the restatement process.
Process Details
The restatement process works similar to the Daily Movement and Period Balance Computation on the basis of the Legal Entity, MIS Date, Data Origin and GL Type. The process runs for each posting date which lies between the earliest posting date for all journals of the specific GL Type. The process re-computes the Daily Movement and (or) the Period Balances for each journal entry identified as backdated for each date lying in the above specified range. The difference in treatment between GL Types is as follows:
- Balance Sheet GL Types
The balances are added on the basis of Credit or Debit vector of the journal entries and the process impacts the Daily Movements and Period Balances for all the dates lying within the above specified range.
- Profit and Loss GL Types
The balances are summed up on the basis of the Credit or Debit vector of the journal entries and the process impacts the Daily Movements for the specific dates for which backdated journals are identified. The process re-computes the period balances for all dates which lie within the above specified range.
The preceding process adds a new version of the existing record with the re-computed balances. This record also shows a difference in terms of the MIS Date versus Posting Date (Effective Date) in the processing entities.
See the following details of date fields in the Stage Accounting Entries entity of OFSDF. See the Oracle Financial Services Data Foundation Application Pack Release 8.1.x documents for the latest information about all the aspects of the data model.
Table 11-1 Details of the Date fields in the Stage Accounting Entries table
| Column Name | Logical Column Name | Column Description |
|---|---|---|
| FIC_MIS_DATE | Extraction Date | This column stores the date as on which the snapshot of source data extracted for processing. |
| D_TXN_DATE | Transaction Date | This is the date of the transaction, which will always be the system date along with timestamp |
| D_VALUE_DATE | Value Date | This column stores the value date of the contract. Value date is the date on which the contract becomes effective. |
| D_POSTING_DATE | Transaction Posting Date | The date on which this transaction was posted against the associated account for monetary instruments and checks. |
| D_PROCESS_DATE | Processing Date | This is the process date of the transaction, which will be populated with current date of ACCT_BRANCH_CODE |
| D_REVERSAL_DATE | Transaction Reversal Date | This column stores date of the transaction which is a reversal entry that made to cancel out a specific entry. These reversal entries are the entries that can be passed as a result of a cancelled transaction. |
For an institution that does daily processing of instrument-level balance, for illustration, a current- dated journal entry extracted and provided to OFSAA 15-August-2020 to be processed as of the same date, bears the following date values, as supplied into STG_ACCOUNTING_ENTRIES:
Table 11-2 Current dated entries
| Column Name | Column Values or Description |
|---|---|
| FIC_MIS_DATE | 15-Aug-20 |
| D_TXN_DATE | As assigned by Systems of Record (Data Origin) |
| D_VALUE_DATE | As assigned by accounting system |
| D_POSTING_DATE | 15-Aug-20 |
| D_PROCESS_DATE | 15-Aug-20 |
| D_REVERSAL_DATE | NULL |
OFSBCE identifies prior-dated journal entries from the comparative combination of MIS Date and Posting Date (D_POSTING_DATE). When Posting Date is prior to MIS Date, OFSBCE processes Balance Sheet and Income Statement ledger account-types as follows:
- The restatement process works similar to the daily movement and period balance
computation processes, by Legal Entity, MIS Date, Data Origin and GL Type.
Restatement is performed for each Posting Date between the earliest one for any
journal entry of a specific GL Type and the present MIS Date. The process
re-computes the Daily Movement and (or) the Period Balances based on journal entries
thus identified as back-dated for each MIS Date in the aforementioned date-range.
The treatment of Balance Sheet and P&L:
- Balance Sheet ledger accounts: The balances are summed up on the basis of Credit/Debit vector of the journal entries and the process impacts the daily movements as well as period balances for all the dates lying within the above specified horizon.
- Profit & Loss ledger accounts: The balances are summed up on the basis of the Credit/Debit vector of the journal entries and the process impacts the daily movements for the specific dates for which backdated journals are identified. The process re-computes the period balances for all dates which lie within the above specified horizon.