Managing Currency Risk in 2013 – Volatility, Economics, Technology & Regulations
This video is from the Proformative webinar “Managing Currency Risk in 2013: Volatility, Economics, Technology & Regulations” held on January 23, 2013. The webinar features presentations from Karl Schamotta, Senior Market Strategist, Western Union Business Solutions, Wolfgang Koester, CEO, FiREapps and Helen Kane, CEO, Hedge Trackers.
Webinar content includes a discussion around what leading multinational corporates are doing to prepare for the volatility that will likely continue into 2013 with timely, accurate and complete visibility into their fast-changing currency risks.
Preparing Your Derivatives for Dodd-Frank
The long arm of Dodd Frank is finally reaching out to impact your hedge program. Hedge Trackers’ Helen Kane partnered with the law firm Holland & Knight to address the current DF Protocol requirements (information exchanges and contractual requirements) that will keep you trading with your counterparty past January 1, 2013. Our guest speaker Eileen Bannon, Partner at Holland & Knight in New York, focused on how the protocol impacts end-users specifically. She also addressed the pros and cons, as well as your options in making end-user elections under the guidance. End-user exemption to mandatory clearing of swaps; what end-users qualify for the exemption and how to go about claiming the exemption was also outlined.
- Slideshow Presentation
- ISDA Amend Process Flow - listed under “ISDA Amend in partnership with Markit”
- What Every End-User Needs to know about the ISDA August 2012 Dodd-Frank Protocol by Eileen Bannon
- CFTC Interim Compliant Identifier Utility
Key Elements of a Successful Hedge Program
This video is from a Hedge Trackers sponsored, Proformative webinar featuring presentations from Walter Boileau, VP & Corporate Treasurer, Polycom, Inc and Helen Kane, President, Hedge Trackers, LLC.
This session explores the underlying concepts of currency risk and hedging of that risk. We explore the geography of economic and accounting risks in your financial statements, provide insight into examining your risk horizon, and explain when and how basic derivatives protect corporations from those exposures. This conversation then expands to discuss when companies generally start into hedging, what key controls should be in place and why hedge results won’t be perfect.
IFRS: Derivative Accounting Direction
There has been almost no activity by US standard setters with regards to derivative accounting since 2010 the IASB has reached a series of conclusions that they plan to issue before July as IFRS definitive guidance on Derivative and Hedge Accounting. In this presentation we reviewed the IASB direction, comparing and contrasting those conclusions with both current guidance under ASC815 and the FASBs proposed changes. These changes will result in substantial differences for entities preparing separate financials for their international entities.
PTMA Luncheon – Euro Dissolution Panel Discussion – Giving Treasury the Tools to Take the Lead
The panel discussed the risk factors and the due diligence performed by your treasury peers to address the possibility of one or multiple countries defecting from the Euro. All areas of treasury are contemplated including operational cash management, currency hedge programs, counter-party risk and enterprise risk. We will also discuss how other treasury groups and peer organizations are raising awareness, how best to educate senior management and how to identify potential tax and legal implications.
Derivative Accounting: Gearing UP for 2011 Year-End Audit and Disclosures
As companies prepare for their 2011 year-end, Hedge Trackers reviews and highlights key audit issues. Using auditors’ reactions through 2011, we discuss current concern areas and review appropriate control environments for derivative programs. For additional discussion, reivew our October Newsletter on Audit Readiness.
Best Practices for a Hedge Program
Hedge Trackers discusses the foundation for the successful implementation of a hedge program whether you have foreign currency, interest rate or commodity risk. It focuses on aligning the efforts of accounting, treasury, planning, and operations to ensure the correct hedging decisions are made at the beginning and the program is properly maintained. An efficiently run hedge program, whether it is for balance sheet exposure or cash flow exposure, is a competitive advantage, results in lower transaction costs, maintains a tighter control over conversion of cash and facilitates analysis of the program in meeting its stated objectives.
Derivative Accounting Convergence: The path from Where We Are (US GAAP) to Where We Are Headed (IFRS)
With the expectation of worldwide accounting standards on the horizon, US GAAP and IAS (International Accounting Standards) are both moving towards a similar framework. These slides provide an overview of the path corporate hedge programs might need to follow starting with the current interpretation of FAS 133 (ASC 815) through the recently issued exposure draft and then on to IAS 39 and what the worldwide standard could look like.
FX Hedging at Risk in New Exposure Draft
Recently, the FASB staff disclosed that the 2008 Exposure Draft language prohibiting hedging of intercompany transactions that eliminate in consolidation are scheduled for inclusion in the redline version of the exposure draft. The redline version has been delayed and is now due out at the end of August though the comment letter period has not been extended and the deadline remains at September 30th.
Exposure Draft on Derivatives and Hedging
Hedge Trackers hosted three one-hour webinars designed to highlight how the new exposure draft, “Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities: Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815)” will impact your interest rate, currency, and commodity hedge programs. Although the redline version is not available until late July we can see the direction and implications from the issued text.
We are seeing many opportunities to lighten the hedge accounting load, but it doesn’t come without a price. If you did not have an opportunity to join us, we are making the presentations available below which will help you to understand if your program will benefit or lose under the proposed changes.
How will it Impact Your Foreign Currency Hedge Program?
How will it Impact Your Interest Rate Hedge Program?
How will it Impact Your Commodities Hedge Program?