case-study
Cedar Realty Trust: Simplifying Hedge Accounting with FINCAD

 HIGHLIGHTS

Client: Cedar Realty Trust 

Cedar_logo

 

Business Objectives

Reduce reliance on spreadsheets for complex hedge accounting processes 

Requirements

  • Introduce automated system for hedge accounting
  • Reduce complexity  

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"We are very excited about FINCAD for hedge accounting. We've been applying hedge accounting for years now and this is the first time that we're using a solution that is fully automated."

Marie Marette, Corporate Accountant at Cedar Realty Trust

 


Background 

Cedar Realty Trust, Inc. ("Cedar") is a fully-integrated real estate investment trust which focuses on the ownership and operation of supermarket-anchored shopping centers in the US. FINCAD interviewed Marie Marette, Corporate Accountant at Cedar to discuss the company's selection of FINCAD's hedge accounting solution.

Q. What prompted you to seek out a hedge accounting solution? 

Cedar required a hedge accounting solution to manage its hedges and satisfy auditor requirements. Complying with ASC 815 regulations (previously known as FAS 133), it needed to provide auditors with retrospective and prospective hedge effectiveness testing, cash flow reports, and Hedging Activity reports.

Q: Why did you choose FINCAD for hedge accounting?

Since the hedge accounting process is traditionally very complex, we decided our next solution had to make applying hedge accounting very, very easy. After evaluating other products on the market, we selected FINCAD for hedge accounting. FINCAD has a reputation for delivering value and service, and providing trustworthy and accurate analytics. We felt that in addition to providing accurate reporting, our auditors would be more confident in our numbers using FINCAD.

Q: How are you currently using FINCAD for hedge accounting?

Before adopting FINCAD, we used a spreadsheet solution for our hedge accounting process. This required manually inputting numbers and recalculating the reports on a monthly basis. We now use FINCAD for hedge accounting to fully automate our accounting process. Reports are automatically updated and PDF reports are emailed directly to the accounting department and auditors.

Q: What are the benefits of the FINCAD solution?

We are very excited about using FINCAD. We've been applying hedge accounting for years now and this is the first time that we're using a solution that is fully automated. All I have to do is wait for the email notifying me that the calculations have been run and that the report is ready to be downloaded, saving me considerable time. Since FINCAD requires minimal user input, we were also able to reduce manual errors.

Q: Did you take advantage of FINCAD training or client services?

FINCAD provided Cedar the training we needed to get up and running right away. Upon adoption of the hedge accounting solution, FINCAD Client Services helped set up all our financial instruments. We were able to get started right away. FINCAD Client Services were very helpful and patient. They always reply readily whenever I have a question. It's great.


 

"FINCAD Client Services helped set up all our financial instruments. We were able to get started right away. FINCAD Client Services were very helpful and patient. They always reply readily whenever I have a question."

Marie Marette, Corporate Accountant at Cedar Realty Trust