Derivative Accounting & Hedge Program Management
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Commodities

Most corporations innately understand their exposure to commodity price risk, as well as the economics of commodity hedging and common hedging instruments.

Few, however, employ internal resources capable of handling complex derivative accounting tasks or implementing special hedge accounting to align the timing and income statement geography of derivative gains and losses in their financial statements.

Hedge Trackers exists to solve that problem. Our team of experts offers corporations a wide range of commodity hedge program services, including consulting on the practical aspects of implementing ASC 815 (formerly FAS 133), outsourced derivative accounting entries, and in-depth, commodity-focused training on hedge designations and derivative accounting requirements.

 

Commodity Hedge Program Consulting

It is all too common for corporations to “get by” with only a marginal understanding of derivative accounting requirements – and only a marginal level of compliance.

Our team of expert consultants specializes in helping companies significantly reduce risk by setting up the accounting to ensure that hedge programs are compliant with ASC 815 (formerly FAS 133).

Cash flow and fair value commodity price risk hedging is extremely sophisticated, as the “overall change” in the purchase price or sales price of a physical asset at its delivered location must be considered for special hedging accounting. Hedge Trackers consultants understand this, as well as the other intricacies inherent to ASC 815. We’ve read it. We’ve re-read it. And we can help you implement and maintain effective and compliant hedge programs.

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Commodity Derivative Accounting

Once an overall hedge relationship strategy and related documentation are in place, our team of derivative accountants can support your commodity hedging program with SSAE 16 compliant derivative accounting entries and disclosures.

Outsourced entries include derivatives that are independently valued, effectiveness testing and measure of the current period effectiveness of the hedge relationship. In addition, you can rely on our staff to keep your reporting current with codification updates and new disclosure requirements.

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Commodity Hedge Accounting Training

At Hedge Trackers, we believe that successful commodity hedge accounting programs are designed and maintained by individuals and corporations who understand both the economics and the accounting of derivatives.

That’s why we strive to share our hard-won knowledge and expertise by providing clients with convenient, comprehensive training sessions.

We offer courses at our Silicon Valley training center, as well as customized client site training for treasury and accounting teams and executives. We also offer regular webinars, allowing clients to stay current with proposed changes to ASC 815 (FAS 133) and derivative accounting addendums.

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