It’s mission-critical for companies to protect their margins, revenues, and expenses from unnecessary volatility. A lot of the time, volatility comes from currency changes — or, foreign exchange risk. Whether it’s for meeting management targets,...
January
15,
2020
Posted by
Jeff Goggins
Most treasury professionals are comfortable gathering and netting down same currency exposures that go in opposite directions. For example, one might hedge GBP receivables net of GBP payables in a single sell forward balance sheet hedge. As...
January
02,
2020
Posted by
Jeff Goggins
Translation and transaction accounting are often confused for one another — but the difference between them is important. How can you tell them apart? Knowing which rates and which rules to apply are all it takes to understand the difference...
December
19,
2019
Posted by
Lorraine Popylisen
If your company transacts internationally, you know you need to use exchange rates to not only convert foreign currency transactions from the local currency into USD but also to translate foreign currency financial statements. In this blog, we’ll...
December
16,
2019
Posted by
Jeff Goggins
Cash flow risk is defined as the variability of functional cash flows for an anticipated transaction or on an existing asset/liability due to a particular risk (in this case, foreign currency risk). Companies often use Cash Flow hedges to protect...
December
10,
2019
Posted by
Karen Gubler
In the late 1990s and into the early 2000s, the spreadsheet was the treasury and accounting tool of choice. Computer programs were still relatively primitive, and the smart phone had not yet arrived. Business professionals leaned heavily on...
December
04,
2019
Posted by
Jeff Goggins
ASC 830 provides guidelines on how to determine the functional currency of an entity. This is typically an election made by management based on the economic environment in which the company operates — but the process is more complex than that. ...
December
03,
2019
Posted by
Ruth Hardie
David Bowman with the Federal Reserve Board has asked the Association for Finance Professionals (AFP) to be the voice of Corporate Treasury in terms of addressing LIBOR for the Alternative Reference Rates Committee (ARRC) as part of the...
November
25,
2019
Posted by
Helen Kane
Treasuries use cash pooling — also known as a cash sweeping system — to provide liquidity to legal entities, aggregate cash for investment or to accelerate debt repayment. Cash Pooling ABC Corporation deploys an international treasury center so...
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