Overnight Index Swap Rate Joins List of U.S. GAAP’s Hedge Accounting Benchmarks
As seen in WG&L Accounting & Compliance Alert, Thomson Reuters/Tax & Accounting.
The GTreasury Blog
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Pros and Cons of ‘Blend & Extend’ for Interest Rate Swaps
*Originally Published on March 21, 2016. The idea of “blend and extend” continues to be a popular topic, and for good reasons. In light of the new rules, however, we’ve updated this popular classic for accuracy and comprehensiveness. In recent months, numerous clients have asked us to weigh in on the possibility of “blend and extend” […]
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Argentina Breaches “Highly Inflationary” July 1, 2018*
Time is running out. Economic conditions in Argentina have deteriorated, with interest rates exceeding 40%, the Argentine peso (ARS) depreciating more than 50% vs. the U.S. dollar (USD) in the last year, and inflation rates approaching 4% per month.
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Field notes from the early adoption of FASB updates to ASC-815
The biggest change that comes with the updates to ASC-815 is a new recognition that hedging is critical to many businesses where margins are at risk due to volatility. The FASB updates for ASC-815 aren’t required to be implemented until the new year beginning after December 15, 2018, but early adoption efforts are well underway and offer […]
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The Latest and Greatest from CapellaFX
One of Hedge Trackers’ goals is to continually update and improve our CapellaFX software solution. The following information discusses the newer features available in our CapellaFX SaaS software. Auto-logon For Support New functionality is available to automatically log into the client support system once you’ve provided your support login credentials. To setup automatic login, go […]
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3 Biggest Pitfalls of Hedge Programs
A successful foreign exchange hedge program requires both a well-planned implementation and careful maintenance. Unclear objectives, poorly documented strategies, and bad data lead to confusion and unexpected results. Surprises happen. Fingers point. The result can be an unfocused program that will be scrapped – not because the company doesn’t have exposures and need risk management, […]
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Software Spotlight: Auto-Logon for Client Support
CapellaFX now supports an auto-logon to the Client Support desk. To apply this functionality, click on the “User Preferences” module on the CapellaFX home screen and go to the Support tab. Input your Support Login user name and password information and click “Save.” Now, when you click on the “Client Support” button on the […]
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Net Investment Hedges to Protect Repatriated Earnings
With the prospect of off-shore cash moving back to the US, and much of it currently denominated in EUR or other volatile foreign currencies, when should treasury departments be protecting the USD value of these soon-to-be repatriated amounts? The EUR has been trending stronger, but will that change when billions of EUR denominated profits held […]
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Software Spotlight: How to Access CapellaFX Help Videos
CapellaFX users can access help right at their fingertips with the new resource library that includes instructional videos. Videos can be easily accessed via the “Help Videos” icon in the bottom right corner on the main CapellaFX application page adjacent to the “Client Support” icon.
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Software Spotlight: Account Break-out for Unrealized and Realized FX Gain/Loss
Another great feature of the multiple account functionality is that now CapellaFX breaks out Unrealized FX gain/loss from Realized FX gain/loss and different account numbers can be set up for these accounts as well. CapellaFX will automatically post reversing entries to Unrealized FX G/L and hard-book entries to Realized FX G/L.
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ASU 2017-12 Impact on Derivative Disclosures
The FASB recently released updated hedge accounting guidance which will improve the financial reporting to better portray the economic results of an entity’s hedge program in its financial statements.
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Software Spotlight: Entity and Strategy Setup – Multiple Account Functionality for ALL Accounts
CapellaFX now has the flexibility to store multiple accounts for each and every account, not just the Effective, Ineffective and Excluded accounts.
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Software Spotlight: Trading a New Currency
Setting up a new currency is straightforward in CapellaFX if you follow these steps:
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Software Spotlight: Batch Close Features
Instead of closing each entity in CapellaFX separately, use the “Batch Close All Entities” feature to close all the entities that are in Prelim status at the same time.
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Software Spotlight: Entity and Strategy Setup – Account Break-out for Short Term/Long Term Assets, Liabilities and OCI
A big benefit of the ability to store multiple accounts is that now you can assign different account numbers for short-term and long-term assets and liabilities. CapellaFX Summary and Detail reports have been breaking out the amounts, but now you can assign different account numbers to distinguish the short term from long term accounts. The […]