Interest rate specific hedge accounting expertise
Quantifying your interest rate exposure and executing appropriate derivative strategies to mitigate that exposure is only half the battle in protecting financial statements from earnings volatility. With more than a decade of experience, Hedge Trackers, LLC has the expertise to help you design a program that not only covers your economic risk, but also keeps the accounting risk at bay.
Prior to execution, we’ll ensure that your derivative is structured for maximum accounting effectiveness results. Once the key terms of the underlying items are defined, we’ll design effectiveness testing and measurement protocols to support your strategy. Finally, we’ll train your staff on how to prepare the required effectiveness tests, effectiveness measurements, credit calculations and the resulting cash flow and/or fair value hedge accounting entries. Or, if you prefer, we’ll prepare the valuations, credit calculations, tests and entries for you – all delivered in a package with key SOX control items included.
Throughout the process, we’ll keep tabs on the standard setters and audit firms for changes in accounting rules and regulations, both domestically and internationally. The knowledge that Hedge Trackers gains from working with many different clients, their auditors, and their regulators, will be at your fingertips.
From consulting on the intricacies of ASC 815 (formerly FAS 133) documentation and set-up to outsourced derivative accounting, we will guide you through the maze of interest rate hedge accounting.
