Exante Hedge Accounting

Exante Hedge Accounting enables an application and automates the process of hedge accounting based on requirements of IAS 39. The system supports Cash Flow Hedge and Fair Value Hedge Accounting. For the purpose of hedge accounting, the system enables designation of:

  • Derivatives (linear and options),
  • Liabilities or financial assets, that do not meet the criteria of derivatives.

FUNCTIONALITIES

Designation of FX, interest rate and commodity hedging relationships, including:

  • Designation of full fair valuation or intrinsic value of derivatives,
  • Designation of derivatives for hedging more than one risk in a single hedging relationship,
  • Designating a few derivatives within one hedging relationship for a given risk,
  • Roll-over designated transactions within the same hedging relationship.

BENEFITS

  • Ability to comply with hedge accounting requirements according to IAS 39.
  • Ability to reduce fluctuation of financial results derived from changes in market risk factors and valuation of hedging financial instruments.
  • Ability to analyze the potential accounting impact of both existing and hypothetical hedging relationships and to effectively manage the final presentation of financial results.
  • Increase in efficiency and reduction of operational risk related to complex calculation performing for the purpose of effectiveness tests and for discovering the effective part of hedging.
  • Limitation of effort needed to run the required process of registering and documenting hedging relationships.
  • Automation of whole hedge accounting process including generation of posting entries
  • Simplicity of generating and availability of documents required by IAS39 in order to apply hedge accounting.
  • Ability to evaluate the business characteristics of derivatives in terms of meeting by them the hedging transactions criteria.