Press Release
Independent Survey Ranks Principia System 'Fully Compliant' for FAS 133
Commitment to End-Users of Derivatives Gives Company Big Edge in
Delivering Tools for New Accounting Standards
New York, July 15, 1999 – Principia Partners, premier provider of turnkey software for end-users of derivatives and other financial instruments, announced today that its system has been ranked fully compliant for FAS 133 in a survey conducted by FAS133.com and International Treasurer. The company's new sub-ledger component to its Principia Analytic System (PAS/SLS) was delivered to all clients in April of this year.
Compliance with FAS 133, the Financial Accounting Standards Board's derivatives and hedge accounting standard for non-dealers, will be mandated for fiscal years beginning after June 15, 2000. The deadline for compliance recently was extended one year because many financial software providers were unprepared, and a number of institutions had imposed a moratorium on new systems implementation in preparation for the Year 2000. In announcing the deadline extension, FASB nonetheless indicated that institutions should be actively involved in establishing systems to comply with the new standard.
The findings of the survey, in which 14 software vendors participated via qualitative telephone interviews and written responses, were released recently on the FAS133.com web site (http://www.fas133.com) and published in an upcoming issue of International Treasurer. The survey's objective was to assess vendors' degree of FAS 133 readiness. In addition to being ranked fully compliant, Principia Partners was awarded the survey's highest ranking for FAS 133 required system functionality.
Theresa Adams, a founding partner and principal of Principia Partners, said, "Our historic focus on providing end-users of derivatives sophisticated, quick-to-implement and easy-to-use tools has given us an advantage in the race to develop systems for FAS 133 compliance. We were aware very early on of the enormous impact of FAS 133, and dedicated considerable resources over a period of time to developing a robust, highly flexible accounting function that would give our clients the ability to comply with the new standard."
About Principia Partners
Principia Partners was founded by a group of finance and technology professionals thoroughly familiar with end-user requirements for managing risk through the use of derivatives. Their collective expertise in trading, operations, systems, and risk oversight has built the framework for the Principia Analytic System (PAS). PAS includes a complete set of robust risk management tools to value portfolios and evaluate risk under expected, historical and stressed conditions. The PAS/SLS sub-ledger enables clients to comply fully with FAS 133 and IAS 39 accounting rules. The dynamic flexibility of the PAS system is reflected in the capability of the new sub-ledger system to receive data from, or export data to, external applications. Further flexibility is demonstrated by the scalability of the PAS system - from a one-person hedge effort to a global capital markets trading operation. The turnkey system, which is distinguished by its ease and speed of installation, is used by a wide range of clients, including corporations, insurance companies, government agencies, commercial banks, money managers, hedge funds and derivatives dealers. For more information on Principia, see www.principiapartners.com.
For press information contact:
Shamira Alidina
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