How to Leverage Automation in your FX Exposure Management Strategy
To manage FX risk effectively, treasury teams must have visibility into their global exposures and the ability to consolidate and analyze large amounts of data from multiple systems.
The GTreasury Blog
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A Blueprint for Effective Hedge Accounting
Hedge accounting is designed to reduce volatility caused by the mismatch between the timing of gains or losses in hedged items and their corresponding hedging instruments. If you align the financial reporting of both, companies will achieve a more accurate representation of where their finances are. Hedge accounting is an important facet of financial management—it […]
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What is FX Risk?
FX risk, or foreign exchange risk, is the exposure a company faces due to fluctuations in currency exchange rates. It arises when transactions occur in different currencies, impacting earnings and financial stability. Effective FX risk management is crucial for businesses engaging in international trade or having operations across borders. Unmanaged FX risk can lead to […]
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The Benefits and Drawbacks of Constant Currency Reporting
To portray their businesses in the most favorable light to investors, many corporate organizations grapple with the question of whether to employ constant currency reporting. This approach can be divisive; while some staunchly advocate for it, others oppose it. However, many major global enterprises embrace constant currency reporting, recognizing its value as a tool that […]
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Top 2 Challenges of Hedging Net Income with Proxy Hedges
With foreign functional subsidiaries, hedging net income is difficult to do. But here’s how it can be done with a proxy hedge.
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How to Record Foreign Currency Transactions (& Identify FX Exposure)
In this blog, we explain three steps (with examples) to properly recording foreign currency transactions under ASC 830.