Hedge Accounting

Hedging without applying hedge accounting can result in a negative impact on your organization's financials since changes in the fair value of your derivatives will flow through to your income statement. In the past, applying hedge accounting was thought to be onerous or expensive. But it really doesn't have to be that way.

FINCAD provides a hedge accounting solution that enables you to take full advantage of the benefits associated with your derivatives hedging strategy by making it easier to comply with hedge accounting standards (Topic 815 and IFRS 9), as well as fair value regulations (Topic 820 and IFRS 13). You get the information you need without using complex spreadsheets and manual processes which can lead to financial restatements – an unnecessary risk that can be avoided with the right system.

Save Significant Time Applying Hedge Accounting

While your current 'system' (usually spreadsheets cobbled together) may work, you're not working as efficiently as you could be. With FINCAD's solution, Hedge Accounting Insight, you can start applying hedge accounting without adding complexity to your daily routine–test for hedge effectiveness and manage risk for your interest rate, foreign exchange and commodity hedges all with the click of a button. Easy-to-use forms makes data entry easier, integrated market data means no need to manually add the reference data for your valuations and scheduled calculations means you can know how effective your hedges are without adding extra burden on your day-to-day tasks.

Greater Visibility with Reports On-Demand

All facets of hedge accounting are made easier with Hedge Accounting Insight including reporting requirements. The system gives you the reports your auditors and stakeholders need – and it's all automated so you can reduce time spent generating disclosures. Hedge Accounting Insight supports many different hedges including FX, IR, and Commodities. Now you can have all the visibility you need into your portfolio to make better decisions.

Learn more about what's available in Hedge Accounting Insight:

Find out how easy it can be to apply hedge accounting to your portfolio – request your customized demonstration today

Top 3 Challenges of Hedge Accounting

With its automated reports and built-in documentation, Hedge Accounting Insight has enabled us to gain a deeper insight into our derivatives and act accordingly, positively impacting our bottom line.

Brian Graham Treasury Manager,
First Calgary Financial Credit Union