Derivative Accounting & Hedge Program Management

Reconcile to Zero

Introducing Reconcile to Zero™, an FX gain/loss analytics tool for Capella Foreign Currency hedge accounting software designed to automate the time-consuming task of fully reconciling foreign exchange remeasurement gain/loss.

RTZ is a unique hedge management solution. By efficiently categorizing the sources of FX gains and losses, the fully integrated tool provides organizations with valuable and actionable information, improving SOX controls and positively impacting the bottom line.

The benefits of quick, complete, and accurate FX reconciliation extend across the enterprise. Hedge program managers gain the ability to efficiently identify opportunities for improvement, bettering future performance. Controllers welcome the improved SOX controls inherent to RTZ outputs. And senior managers receive timely, understandable information, increasing confidence in the hedge program’s overall efficacy and value.

Why Do Corporations Need RTZ?

The costs of not having a reliable process for reconciling unexpected FX gains and losses are high: accounting errors, misguided strategic hedging decisions, lack of appropriate performance reporting, inadequate controls, and more.

RTZ is a hedge management tool designed to make analyzing currency gain/loss an easy, repeatable process – providing unique insights to improve your program’s performance.

Schedule a Demo

Unfortunately, manually reconciling all the factors inherent to FX hedging has historically proved time- and cost-prohibitive. Not with RTZ. The tool allows corporations to quickly and efficiently access consolidated FX gain/loss reporting by currency, supported at the trade and transaction-level by entity and currency.

RTZ is the only system based solution that can analyze exposures, currency conversions and derivative interactions to separate the impacts of unhedged currencies, over/under hedging, trade timing, forward points, excluded time value, hedge ineffectiveness, and other factors. By examining all relevant sources of FX gain/loss, RTZ gives clear, actionable information on program drivers – ultimately improving effectiveness, confidence and your bottom line.

How Does RTZ Work?

On a fundamental level, RTZ is designed to dissect hedge results into eight categories, determined by the Hedge Trackers’ practical corporate exposure management and derivative accounting experience, as well as the real-world knowledge we’ve acquired while examining and re-engineering hundreds of hedge programs.

RTZ joins, through its automation and reporting, the complexity of accounting for derivatives under ASC 815 with the nuances of accounting for FX transactions under ASC 830. This unique combination allows corporations to automate timely, accurate and actionable balance sheet hedge program reconciliations, with the confidence that their clearer gain/loss lines are protected by an expert understanding of highly-technical derivative codifications and principles.

RTZ is a fully integrated tool for Hedge Trackers’ CapellaFX hedge accounting software.