Hedge Accounting

Test the effectiveness of your hedges, apply the defined accounting treatment and create general ledger journals with Whistlebrook’s Hedge Accounting system.

HEDGE ACCOUNTING OVERVIEW
  • Perform prospective and retrospective assessments as required by IAS39 for dynamic fair value macro hedging
  • For the aforementioned  hedging, derive relationships according to user preferences, to optimise expected hedge effectiveness
  • Generate the necessary hedge accounting entries
WHA BUSINESS CHALLENGES
  • Movements in the fair value of hedge instruments can cause volatility in Profit or Loss. Minimising that volatility is important.
  • Complex calculations required to prove that hedge accounting criteria under the relevant accounting standards are satisfied.
  • The need for an efficient way to demonstrate the presence of an economic relationship between hedge instruments and hedged items.
BUSINESS BENEFITS
  • An easy to use system that will identify relationships expected to optimise hedge effectiveness
  • Assessments that justify application of hedge accounting
  • Reports with full data drill down to a granular level
  • Accounting entries automatically produced
SUMMARY

The Whistlebrook (WHA®) system will deliver a powerful tool to help firms apply the rules of hedge accounting and thereby assist in reducing volatility in Profit or Loss, linked to fair value movements. Users will benefit from simplicity, options for deriving hedge relationships in fair value macro hedging, as well as granularity of data in a highly complex area. Reports that provide detailed results of the assessments required to demonstrate effectiveness, will ensure that the ‘how’ and ‘why’ of the automatically generated journals are easy to understand.