Accounting Considerations When Hedging Yield on Future Bond Issuances
Hedge accounting guidance under GAAP does not always mesh cleanly with market practices related to a derivative strategy and underlying hedged item.
The GTreasury Blog
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‘Locking in’ USD: Hedging in Growth Mode
Currency volatility is driving companies to implement hedge programs earlier and earlier in their growth cycles, with eyes on “locking in” current rates to protect their financials.
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Is Your Hedge Program at Risk Due to OECD’s BEPS Action Program?
Cost-plus tax strategies are under fire. And in Australia they may be faced with extinction. What might that mean for your hedge program? The impact will depend on your current structure and hedge program. If you have a USD functional entity (e.g., Singapore) that “owns” the AUD revenues and pays the Australian entity a cost-plus […]
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Getting You to the Top: Part III. Exposure Centralization
This is the third in a series of posts designed to give a top-line overview of the steps to establishing a balance sheet hedge program. Today, we’ll focus on centralizing exposures. You can see past entries at gtreasury.com/blog, or speak to us directly at AFP 2015 this October. The communicative properties of math allow currency […]
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Hedge Specificity Memo: EURO Exposure Risk
Is the hedge designation language specific enough for a third party to know if a specific invoice is a hedged invoice when it’s recognized in the financial statements? The purpose of the specification is two-fold: 1) to be able to clearly identify which, if any, derivative is hedging the transaction when it is incurred/recorded, and […]
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Getting You To The Top: Part II. Exposure Validation
This is the second in a series of posts designed to give a top-line overview of the steps to establishing a balance sheet hedge program. In part two, we’ll focus on exposure validation. You can see past entries above or speak to us directly at AFP 2015 this October. Many finance professionals assume that their […]