The second annual FINCAD Corporate Finance Survey found that 73% of respondents conducted hedge effectiveness testing, but of these, 36% reported it as their biggest challenge; greater than accurate risk assessment or independent valuations. To assist with this challenge, FINCAD has today announced the launch of Hedge Accounting Insight, a time and cost-effective solution developed with the goal of simplifying hedge accounting.
The financial and reputational costs of restating financials are immense. The Hedge Accounting Insight system was designed to automate the hedge effectiveness testing process, replacing spreadsheets and thereby reducing the operational risks associated with their use.
“There is an obvious lack of hedge effectiveness testing solutions that target medium to large corporations,” said Daniel Scott, VP of Product Management & Marketing, FINCAD. “In our talks with finance professionals, it became clear that most hedge effectiveness solutions available in the market are too expensive and quite complex to use, leaving treasurers, controllers and auditors with the option of either using highly manual internal spreadsheets, or outsourcing their hedge effectiveness testing to specialist consultants. Our new solution changes that.”
Designed by hedge accounting experts, Hedge Accounting Insight provides automated hedge accounting reports that can be accessed from anywhere through a secure website. Embedded documentation with all the necessary support information for hedging provides users with an audit trail that satisfies regulatory requirements, including SOX, FAS 133 and IAS 39 / IFRS 9.
“We couldn’t be happier with Hedge Accounting Insight,” said Brian Graham, Treasury Manager at First Calgary Financial Credit Union. “With its automated reports and built-in documentation, Hedge Accounting Insight has enabled us to gain a deeper insight into our derivatives and act accordingly, positively impacting our bottom line. Hedge Accounting Insight gives us the room to grow.”
Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countries around the world, FINCAD is the leading provider of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. FINCAD provides software and services supporting the valuation, reporting and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms, and governments. FINCAD Analytics can be accessed through Excel, MATLAB, as a Software-as-a-Service or embedded into an existing system through software development kits.