Reval´s SaaS Solution to Help with New, Complex Credit Valuations Requirement
Deloitte Australia has implemented Reval’s Credit Value Adjustments (CVA) solution to increase automation and efficiency in challenging calculations required under IFRS 13, announced Reval, a leading global Software-as-a-Service (SaaS) provider of comprehensive and integrated solutions for Treasury and Risk Management (TRM) today.
IFRS 13, which is effective for accounting periods beginning on or after 1st January 2013, requires the fair value of derivatives to be based on a reasonable “exit price”, the price that would be received to sell an asset or paid to transfer a liability. To achieve compliance with the standard, companies will be required to incorporate the appropriate credit risk into financial instrument valuations. The impact of IFRS 13 will be significant as CVAs in fair value calculations may cause greater income statement volatility and potentially increase hedge ineffectiveness.
“We chose Reval as our strategic partner for their deep expertise in financial instruments and SaaS technology, and recently enhanced our solution with their CVA capabilities,” says Steven Cunico, partner at Deloitte Touche Tohmatsu. “The application of CVA is an evolving subjective area where corporations should consult their auditor or accounting advisors for guidance. Using Reval´s solution, we are able to gain efficiency through automating the complex calculations required under IFRS 13.”
For six years, Deloitte Australia has leveraged Reval’s SaaS solution to provide advisory services to their clients in an ever-changing regulatory environment and deliver outsourced hedge accounting services. Additionally, Deloitte Australia uses Reval to help with valuation and hedge effectiveness testing in their audit work. The IFRS 13 capabilities have been used since December 2012.
“We are proud that Deloitte Australia relies on our SaaS solution to provide superior services to their clients,” says Tony Singleton, Managing Director Asia Pacific at Reval. “Reval’s integrated market data and credit curves allow corporations and audit firms to systematically calculate valuations and maintain on-going compliance with the changing regulatory landscape.”