RevalÂ®, a provider of financial risk management technology solutions and services, is pleased to announce that the Serco Group plc (âSercoâ) has selected Revalâs HedgeRx for foreign exchange and interest rate risk management and IAS 39 reporting. Serco is a UK-based company with over 40,000 employees delivering essential public services in more than 30 countries.
Under IAS 39, derivatives are no longer off-balance sheet and now must be marked to market every period. In order to minimize P&L volatility, derivative users complying with the International Financial Reporting Standards must demonstrate that these hedging transactions will be highly effective to receive a more beneficial accounting treatment.
Serco chose Reval to replace existing spreadsheets and an alternative system for IAS 39 compliance. Serco found that there was a need to have deeper functionality and support around IAS 39. Reval could accommodate all of Sercoâs requirements off the shelf.
Craig Nunn of Serco Group plc, said "We are looking forward to benefiting from the proven track record of Reval in the complex and time-consuming area of IAS39 compliance."
"We are very excited to be working with another UK client in the form of Serco." noted Peter Reynolds, Director of European Sales of Reval. "Serco was looking for a system that could deal with the complicated issues surrounding IAS 39 and we look forward to getting them live very quickly"
With the sale to Serco, Reval continues its rapid growth in Europe and continues to maintain its lead in offering the most comprehensive derivatives and hedge accounting solution for corporate treasury.