Derivative Accounting & Hedge Program Management
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Hedge Program
Consulting Services

Hedge Trackers’ expert consulting services for foreign currency, interest rate and commodity hedge programs provide clients with the tools and knowledge necessary for sustained success.

Whatever the client’s need – understanding the accounting and economic nuances of underlying exposures, hedge instrument evaluation, risk management policies, derivative valuations, special hedge accounting, audit support, disclosure reporting or effectiveness assessment – we act as a partner, imparting valuable, and actionable information at every turn.

Hedge Trackers’ consultants have helped more than 500 organizations plan, implement and maintain derivative accounting-compliant hedge programs since 2000.

Our consultants are among the industry’s most experienced; their résumés include roles at leading global corporations, financial institutions and Big Four accounting firms, in addition to their work with a diverse set of Hedge Trackers clients.

 

Foreign Currency Consulting

Hedge Trackers consultants specialize in helping clients identify, plan and execute effective balance sheet hedges, cash flow hedges, fair value hedges of firm commitments and foreign denominated AFS securities, and net investment hedges of translation exposure.

By combining rich experience and a proven methodology, our consultants create actionable, sustainable foreign currency risk management plans that:

  • Focus on achievable objectives and strategies
  • Create policy and accounting guidelines documents that outline the company’s application of – and compliance with – ASC 815 (formerly FAS 133)
  • Identify and quantify accounting anomalies that plague balance sheet hedge effectiveness
  • Establish realistic expectations for hedge impacts on consolidated financial statements
  • Contemplate and test potential sources of accounting and economic ineffectiveness
  • Outline control structures
  • Support your team in discussions with your audit firm
  • Deliver robust, consistent performance reporting
 

Interest Rate Consulting

Hedge Trackers provides interest rate hedge accounting documentation, implementation and support services to dozens of corporations and financial institutions. Our expert consultants can:

  • Contemplate the potential earnings impacts of hedging benchmark interest rate risk, as well as overall changes in your exposure
  • Identify the key decisions and resulting documentation requirements needed at the inception of a hedge relationship – even late designations
  • Create policy and accounting guidelines documents that outline the company’s application of – and compliance with – ASC 815 (formerly FAS 133)
  • Ensure that potential sources of ineffectiveness are contemplated and tested
  • Outline control structures
  • Support your team in discussions with your audit firm
 

Commodities Consulting

Hedge Trackers consultants excel at helping corporations significantly reduce risk by assisting in the planning, implementation and maintenance of ASC 815-compliant commodity hedging programs.

Our unique experience and methodology provides clients with the confidence they need to tackle cash flow and fair value commodity price risk hedging. Hedge Trackers consultants can help organizations:

  • Identify achievable objectives and strategies for a commodity risk management program
  • Ensure documentation and disclosure requirements are addressed
  • Contemplate all the potential sources of ineffectiveness for testing
  • Implement processes to measure “overall changes” in exposures
  • Outline control structures
  • Design repeatable procedures to capture operational data required for both “like item” and retrospective/prospective effectiveness testing
  • Identify the key decisions and develop designation documentation to leverage existing trading processes and procedures