Hedge Accounting
Representative Services
- Implementation of hedge accounting applications
- Design and documentation of hedge designation process
- Valuation of hedge instrument and hedge items
- Accounting calculations
- Preparation of journal entries
- Accounting reports
Case Studies
IFRS9 Hedge Accounting Implementation
A large, international utility was required to make significant modifications to their hedge accounting process to comply with the changing accounting standard, IFRS9. The new standard significantly increased the requirements for designating derivatives as hedges, the documentation of the portfolio of hedges against the highly probably forecast, and the tracking of the unwinding of designated hedges. This was accomplished by customizing an existing hedge accounting application to meet the requirements to provide valuation, hedge accounting, and the development of journal entries in support of the new standard. This resulted in the implementation of the only IFRS 9 hedge accounting application in the local country to meet the effective date of the IFRS9 standard. The project was delivered on-time and on-budget.