Solutions for Hedge Accounting
A Simplified Approach to Determining Hedge Effectiveness and Meeting Accounting Standards
Hedge accounting is a complex business function that requires specific expertise. Finance professionals must comply with evolving regulations to ensure their hedges remain effective in a quickly changing environment. On the operating level, hedge effectiveness calculations are often maintained manually in spreadsheets that lack documentation for justifying outputs.
FINCAD’s Hedge Accounting Insight (HAI) service addresses these challenges. Instead of using error prone standalone spreadsheets, you’ll be able to calculate all your hedges in one place. FINCAD’s models are thoroughly documented, and regularly updated to reflect the latest accounting requirements. Using HAI can also help you easily adapt to changing market conditions such as the phase-out of Libor, as all FINCAD solutions are current with the new alternative risk-free rates (ARR’s).
Trade in Your Spreadsheets for the Ease of Automation
FINCAD’s automated, web-based hedge accounting solution enables you to spend less time valuing hedges in spreadsheets, so you can focus on your core responsibilities. The FINCAD HAI interface is both easy and intuitive to use, so you won’t need to devote time to learning a new and complex system. Results can be easily exported to Excel or as CSV and PDF files, depending on your preference. And if ever you need help, our Support team is ready and available.
Discover how ACWA POWER benefited from automating hedge accounting with FINCAD.
Stay on Top of Your Hedge Effectiveness Risk
FINCAD’s output is centered around hedge effectiveness metrics for each of your hedged instruments and their associated derivatives. You can see if a given hedge is close to becoming ineffective, empowering you to take proactive risk mitigation steps. Automated, detailed hedge effectiveness reports can be scheduled for delivery to your inbox as needed. Your reported results can enable you to react quickly to a range of changing market conditions, from volatility to the switch to new ARR’s.
Read how ATB Financial has improved hedge effectiveness testing with FINCAD.
Meet Requirements without Adding Extra Work
Why not, leave the hard work of meeting hedge accounting standards to us? Use FINCAD to cost-effectively manage compliance with standards including full pass/fail hedge testing transparency— without adding to your to-do list. As a leader in derivatives valuation and risk analysis, FINCAD provides auditors and corporate treasuries alike with the detailed reports they need. Our hedge accounting service is certified with SOC 1 and SOC 2, type 2 attestations.
Learn how Etrion Corporation uses FINCAD to manage hedge accounting standards.
Take Back Control of Your Hedge Accounting
Without FINCAD, tasks such as setting up a SIBOR hedge effectiveness relationship, testing it, and generating the valuations would have taken two weeks to accomplish. However, using FINCAD these tasks are completed in a couple hours.