With commodity risk management responsibilities shifting to the treasury department, there is more pressure on treasurers to comply with hedge accounting rules associated with their commodity hedges in an easy and cost-effective way.
Understanding this challenge has led FINCAD to develop a commodity hedge accounting module that can fully automate the management and testing under the hedge accounting rules of FAS 133 and IAS 39/IFRS 9. The new module joins the cash flow hedge that was released earlier this year with support for fair value hedges being released in the near future.
The new functionality supports the necessary workflow to cover the test results and reporting needs required under hedge accounting rules all within an easy to use online based system. Users will save significant time with automation which reduces operational risks associated with a more manual process.
"Our customers working in corporate treasuries have been talking to us about the challenges of managing their hedging programs and complying with the regulations,â said Bob Park, President & CEO, FINCAD. "Being able to provide them with a system that saves them time and provides a cost-effective alternative to consultants or other systems in the marketplace is a big win for corporate treasurers looking for an affordable hedge accounting solution".
Fair Value Insight is an online system from the valuation and risk experts at FINCAD. It provides coverage for the most commonly used instruments and can easily be expanded to provide support for other instrument types. It has a robust credit adjustment process and an easy to use scenario engine allowing for backtesting. The system contains all the necessary market data, saving users significant time while dramatically reducing errors. Fair Value Insight is a software-as-a-service solution that requires no software or hardware installation and is accessible through a web browser from virtually anywhere.