A successful foreign exchange hedge program requires both a well-planned implementation and careful maintenance. Unclear objectives, poorly documented strategies, and bad data lead to confusion and unexpected results. Surprises happen. Fingers...
March 19, 2018
February 12, 2018
With the prospect of off-shore cash moving back to the US, and much of it currently denominated in EUR or other volatile foreign currencies, when should treasury departments be protecting the USD value of these soon-to-be repatriated amounts? ...
September 13, 2017
The critical role of hedging global operations is rarely recognized. Read on as we examine the importance and how it can save your company’s earnings. Currency movements – whether overnight surprises like the GBP’s free fall the morning after...
June 13, 2017
The client stopped missing forecasts due to currency movements when Hedge Trackers showed senior management that hedging could mitigate currency risk without increasing accounting risk. The Background: Currency movements were wreaking havoc on...
March 07, 2017
In some respects, Treasury has a dual burden where Balance Sheet hedging is concerned. Not only does the typical Treasury professional need to understand currency markets and derivatives, but he or she is often responsible for explaining the results...
December 07, 2016
As originally written by Helen Kane for AFP. It is quite common for U.S. corporations with foreign functional entities to leave cash overseas until an American tax holiday makes it advantageous to convert it to U.S. dollars.
October 13, 2016
Currency hedgers have the choice of including or excluding time value in effectiveness testing when applying cash flow hedge accounting to derivatives hedging forecasted FX-denominated transactions.
September 13, 2016
Hedge accounting is changing – for the better! There are a few items in FASB’s Sept. 8 Exposure Draft that should be noted, as these will affect all foreign currency hedgers taking special hedge accounting:
September 13, 2016
Every cash flow hedge program begins with the best intentions: Reducing the impact FX, interest rate or commodity volatility has on anticipated revenues and expenses.