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  • New Hedge Accounting Guidance Prep Checkup

      In anticipation of the new hedging guidance, here are a few best practices for a solid foundation before implementing the updates.

  • Software Spotlight: Using the Copy Feature

    Does anyone like inputting the same information twice?  If not, CapellaFX has a feature that you should know about. There is a system feature that allows you to copy trade information from one trade to another.  In the trade window, pull up the trade you want to copy information from.  Click on the “New” button […]

  • Hedge Trackers’ Solution to Manage Currency and Accounting Risk

    The client stopped missing forecasts due to currency movements when Hedge Trackers showed senior management that hedging could mitigate currency risk without increasing accounting risk. The Background: Currency movements were wreaking havoc on corporate forecasts communicated to analysts. Management understood that hedging could address the exchange rate volatility being blamed for the misses, but had […]

  • Targeted Improvements to Hedge Accounting: Latest Update

    The FASB continues to fine-tune its improvements to hedge accounting rules, which are due for final release later this quarter with early adoption available at the start of a company’s fiscal year. The general trend has been to relax the hedge accounting requirements so that those requirements are not a deterrent to the election of […]

  • Software Spotlight: How to Print Multiple Trade Tickets

    Capella providers users with the ability to print multiple trade tickets at once. It is simple and easy to do.

  • Hedging Balance Sheet Risk: Going From Good to Great

    In some respects, Treasury has a dual burden where Balance Sheet hedging is concerned. Not only does the typical Treasury professional need to understand currency markets and derivatives, but he or she is often responsible for explaining the results of a hedge program – which are almost 100 percent dependent on the way in which […]

  • More Good News from the FASB

    In response to comment letters and FASB roundtables the FASB further relaxed effectiveness testing requirements in the proposed derivative accounting update, now permitting preparers to return to qualitative effectiveness testing after there have been changes in facts and circumstances that would require the entity to perform a quantitative effectiveness test. On February 15th, the FASB […]

  • Private Companies – More Hedge Accounting Wins

    On February 15th, the FASB discussed potential changes to the requirements for hedge documentation for private companies. During the January FASB meeting, the board looked at how the exposure draft changes to hedge accounting might impact private companies and decided to look specifically at the timing requirement for the production of hedge documentation, including the […]

  • More Good News from the FASB

    On February 15th, the FASB re-deliberated the previously proposed prohibition of returning to qualitative effectiveness testing after a change in facts and circumstances.

  • Next Steps for FASB Exposure Draft on Hedging

    The FASB reaffirmed many of the decisions made in the original exposure draft issued September 8, 2016. However, they will continue to discuss the following issues raised by constituents in the two meetings detailed below.

  • Hedge Accounting Exposure Draft: Key Items Agreed Upon at Recent FASB Meeting

    The FASB met recently to discuss the results of the public outreach. They collated the input from 15 comment letters, 30 investors, 2 public roundtables with 18 participants each and the private company council meeting on December 13th. Overall, the input was quite positive and the staff recommended that the following items be affirmed:

  • Variation Margin changes for Cleared Derivatives

    The Chicago Mercantile Exchange (CME) and the London Clearing House (LCH) have changed the rules such that variation margin is now legally characterized as settlements as opposed to collateral. The CME rule changes were effective 1/3/17 which will impact calendar year clients in Q1. The LCH changed its rules in 2016, but counterparties can opt […]

  • Software Spotlight: Capella’s Management Reporting Dashboard

    Capella’s Management Reporting Dashboard provides users with a vehicle to show metrics and views to their specific needs. On the home page view, a user can toggle between the Standard menu and the Dashboard views using two buttons in the middle on the top of the screen. Under the Dashboard view, Standard menu also appears […]

  • FASB Roundtable: ‘Good Enough’ Draft Not Perfect, but Ready

    The message from participants at this month’s FASB roundtable was clear: The pursuit of a “perfect” update to ASC 815 shouldn’t get in the way of a timely release of the current “good enough” draft.

  • Parking Cash Abroad is Risky. Here’s What Treasurers Can Do.

    As originally written by Helen Kane for AFP. It is quite common for U.S. corporations with foreign functional entities to leave cash overseas until an American tax holiday makes it advantageous to convert it to U.S. dollars.