• About Us
  • introduction
  • the team
  • our clients
• Services
  • consulting
  • outsourcing
  • training and education
  • software tools
  • engagements
• Resources
  • demos
  • datasheets
  • white papers
  • newsletters
  • links
• Events
  • Hedge Trackers training
  • conferences and seminars
  • CPE Training

Engagements

FAS 52 - Functional Currency Review - engaged to review the FAS 52 functional currency designation of international subsidiaries for this high technology multinational after a substantial acquisition. Outlined for management the economic ramifications, the accounting implications, and system requirement of the designations. Identified and documented key indicators supporting functional currency designations. Facilitated functional currency changes with practical solutions for meeting both foreign statutory requirements and US GAAP.

FAS 52- System Configuration Review - reviewed for an international company FAS 52 remeasurement compliance at their international subsidiaries, and FAS 52 translation compliance in the consolidation. Identified numerous issues with system configuration and account setup in ERP systems that were creating both timing and financial statement classification problems. Assisted accounting and systems personnel to identify and implement solutions, and established processes to avoid future incidences.

FAS 52 - Accounting Refresher - provided 8-hour training (and CPE credit) using client specific transactions and financials to review FAS 52 remeasurement and translation fundamentals for corporate training program. Presented key concepts, relevant corporate applications, specific examples, including debit/credit level case studies to 50+ accounting and finance personnel.

FAS 52/133 - Remeasurement Hedging - implemented performance reporting for this technology company that was reporting large FX gains and losses in spite of an active foreign currency hedging program. Provided tools for identifying the source of FX exposure across the globe and quantifying gain and losses by entity and currency.

Trained personnel to further analyze and reconcile FX gains and losses, specifically detailing sources of reported gains and losses: over/under hedging, unhedged positions, timing, interest differential, accounting anomalies, etc.

FAS 133 - Review - invited by client to review their existing FAS 133 hedge program against best practices. Identified opportunities to better align program economics and financial statement presentation. Detailed documentation shortfalls. Proposed prospective changes in effectiveness testing methodologies.

FAS 133 - Training - educated accounting firm partners, senior managers and managers in FAS 133 concepts and applications during eight hours of technical training. Focused on audit approaches and key risks in derivative identification, hedge documentation and effectiveness testing.

FAS 133 - Embedded Derivative Review - designed process for identifying potential embedded derivatives across global corporation. Trained treasury personnel to evaluate contracts scoped out of 133 and to document exception criteria, where possible.

FAS 133 - Implementation - hired by large multinational to address global foreign exchange risks. Designed a process for collecting both economic and accounting exposures by currency. Outlined key policy options for addressing exposures. Drafted foreign exchange risk management policy, clearly defining permitted hedge strategies, fundamental controls, and FAS 133 constraints. Detailed implications of FAS 133 elections and testing methodologies. Implemented complete hedge program under FAS 133 to address substantial increase in international exposures to mitigate and control the impact of currency volatility in margin over the plan horizon. Trained risk management committee to evaluate derivative instruments against exposure profile. Taught personnel to price derivative trades. Assisted client accounting personnel with preparation of entries until internal competence developed. Assisted with financial disclosure preparation. Implemented a process for measuring performance of derivative program.

Executive Refresher on Currency Impacts on Financial Statements - reviewed with senior executives and financial management where (financial statement geography ), when (timing), and how currency volatility impacts reported earnings. Highlighted geography, timing, and volatility implications of FAS 133 hedge program. Briefed attendees on probable analyst queries and outlined data requirements and potential responses.

Evaluate New Derivative Strategies - investigated and reported on FAS 133 accounting and economics implication of derivative strategies proposed by counterparties. Assisted company in evaluating "component" costs of proposed complex derivatives.

Interest Rate Swaps - drafted interest rate risk management policy, clearly defining permitted hedge strategies, fundamental controls, and FAS 133 constraints. Identified critical terms of underlying and constructed the variable leg of the swap, to improve effectiveness testing. Interacted with counterparty to solicit/negotiate pricing.

Functional Currency Change Impact on Hedge Program - evaluated the consequences of proposed functional currency changes on established hedge programs (margin and remeasurement). Specified changes in FAS 133 documentation to provide flexibility as entity explored functional currency change. Quantified the required changes in hedge notional amounts, and detailed transfer of contracts between entities required at date of change for both designated and non-designated hedges.

Aligning Economics with Accounting - helped a "naturally hedged" company adopt an FAS 133 hedge program that aligned the financial reporting of the position with the economics. Eliminated reporting of FX Gains and Losses as well as margin volatility in the periods between foreign currency receipts and payments.