The treasury department of an organization is often responsible for mitigating foreign currency, interest rate and commodity price risk. Most of the derivatives used to manage that risk are negotiated by Treasury … but this is not always the case for commodity risk management.
Hedge accounting is changing – for the better, no less! There are a few items in FASB’s Sept. 8 Exposure Draft that should be noted, as these will affect all commodity hedgers taking special hedge accounting:
Every cash flow hedge program begins with the best intentions: Reducing the impact FX, interest rate or commodity volatility has on anticipated revenues and expenses.
An upcoming Exposure Draft, which the FASB is expected to issue before the end of Q3, will contain sweeping changes for commodity hedgers. This is Part 1 in a series of posts highlighting the changes expected to be included in the exposure draft. Part 2 focuses on FX hedging; Part 3 focuses on cash flow interest rate hedging. […]
One of the biggest advantages of utilizing Hedge Trackers’ integrated hedge program consulting and software is the ability to efficiently address turnover and temporary absences in the Treasury or Accounting department. That can mean one of two things.