[October 10, 2018] |
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GTreasury Releases New Module for ASC 815 Hedge Accounting Standard Update
Corporate treasury departments accounting for derivatives under FASB's
ASC (News - Alert) 815 hedge accounting standard can now use a new software module from
GTreasury to comply with the accounting standard update (ASU), effective
January 2019 for public companies. GTreasury is an integrated SaaS (News - Alert)
solution for treasury and risk management.
"Mandatory reporting is right around the corner, and our clients will be
able to benefit now," says GTreasury Vice President of Market
Development, Risk, Peter
Seward. "These are very positive changes to the North
American hedge accounting standard that will bridge the gap between the
accounting and economic outcomes of derivatives use, and will in most
cases, help reduce P&L volatility. The release of our new module
underscores GTreasury's visual approach to complex topics, and it
complements our well-known cash management and debt and investment
offerings, reinforcing GTreasury's position as a leading treasury and
risk management system."
Using GTreasury's new module, companies can execute on:
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Relaxation of the change in the lesser of the cmulative change
(30(b)) rule for cash flow and net investment hedges, resulting in
reduced P&L volatility
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Hedging of the benchmark rate for interest rate fair value hedges
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Treatment of option time value, currency basis and FX forward points
as excluded components of OCI
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Amortization of option time value and FX forward points
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Partial Term hedging of interest rate exposures
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Hedging of the contractually specified interest rate for IR cash flow
hedges
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Qualitative retrospective effectiveness assessment
The FASB issued its final accounting standard update last August, with
early adoption permitted. At that time, it reported:
"The new standard refines and expands hedge accounting for both
financial (e.g., interest rate) and commodity risks. Its provisions
create more transparency around how economic results are presented, both
on the face of the financial statements and in the footnotes, for
investors and analysts."
For more information about GTreasury, or to schedule a demonstration
of the new ASU for ASC 815 module, please visit www.GTreasury.com
or email [email protected].
About GTreasury
GTreasury is the leading innovator of integrated SaaS treasury and risk
management solutions for the digital treasurer. Developed using the
latest technology, GTreasury helps empower organizations on their path
to strategic treasury, by enabling total visibility into their cash,
liquidity, payments and financial risk management. With enterprise
clients spanning North America, EMEA and APAC, GTreasury is
headquartered in Chicago with offices in London, Sydney and Manila.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181010005274/en/
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