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...
June 13, 2017
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.
August 12, 2016
On a purely theoretical level, the goal of a balance sheet hedge program is to simply cancel out the effects of FX volatility on the books. If an exposure produces a loss, the theory goes, a derivative should produce an equivalent gain – offsetting...
July 13, 2016
Ever thought about how you should “convert” certain cash flows or, when you’re hedged, how that might impact the cash flow forecast? Cash flow forecasting is as much an art as it is a science, but there are some tangible hidden factors that you may...
June 02, 2016
Q3 is the new FASB deadline for issuance of an Exposure Draft revolutionizing hedge accounting. Though its exact wording has not been released, the conclusions released to date ensure it will have significant impacts on the corporate hedging...