Special hedge accounting is an elective accounting treatment under U.S. and International accounting principles. An organization must first qualify for special hedge accounting and then follow ongoing compliance requirements to remain qualified.
One of the most difficult and frustrating exercises in treasury is understanding and communicating the results of a balance sheet hedge program.
In the late 1990s and into the early 2000s, the spreadsheet was the treasury and accounting tool of choice. Computer programs were still relatively primitive, and the smart phone had not yet arrived. Business professionals leaned heavily on spreadsheets due to their flexibility, powerful set of available formulas and relative ease of use.
For many years, corporations had to decide if they should purchase an all-in-one or best-of-breed treasury workstation.