December 16, 2019

Basic Cash Flow Hedges: 4 Facts You Need to Know

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...
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December 10, 2019

8 Risks of Spreadsheets in Treasury (And How You Can Avoid Them)

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...
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December 04, 2019

New Insights Into the Old Functional Currency Decision

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. ...
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December 03, 2019

A Voice for Corporates: The AFP LIBOR Task Force

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...
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November 25, 2019

Restoring Economic Integrity When Hedging Foreign Currency Cash Sweep Transactions

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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November 19, 2019

All-in-One vs. Best-of-Breed Treasury Technology

Posted by Karen Gubler
For many years, corporations had to decide if they should purchase an all-in-one or best-of-breed treasury workstation. Much like the enterprise resource planning (ERP) space of the 1990s, there were a few large end-to-end treasury workstations...
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November 15, 2019

FASB Approves Finalization of LIBOR Transition Guidance

Posted by Ruth Hardie
As you know, the LIBOR transition topic is evolving on an almost daily basis. Earlier this week, the FASB approved the finalization of guidance to assist entities with the transition away from LIBOR. The new Accounting Standards Update (ASU),...
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November 11, 2019

10 Reasons Why Companies Hedge Foreign Currency Risk

Posted by Glenn Suarez
How and why companies hedge foreign currency risk depends on factors such as the industry, risk management acumen and management team perspective. But most public corporations do hedge their FX risk for one reason or another.
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November 07, 2019

Interest Rate Reform and Implications on Foreign Currency Derivatives

Posted by Karen Gubler
What's the Issue? Britain is ending support of the London Interbank Offered Rate (LIBOR) on or about 2021. US regulators currently plan to replace LIBOR with the Secured Overnight Financing Rate (SOFR) curve. The pending “Illiquid LIBOR Market”...
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