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Software Tools

AcappellaFX Version 2.4.0 Released

AcappellaFX

AcappellaFX is our stand-alone FAS 133 compliant currency exposure management software solution. It is designed for corporate currency risk managers who want to improve the accuracy, performance reporting and segregation of duties associated with their hedging programs. As its name suggests, AcappellaFX runs "without accompaniment" - no dedicated IT or FAS 133 support is required. It rigorously adheres to FASB and SEC accounting requirements to ensure accurate FX derivative reporting and reduce the risk of earnings restatements. But unlike many other products, AcappellaFX also provides reports for your SEC and FAS 133 disclosure requirements, and gives you the flexibility to handle unexpected situations, such as a forecast slipping into the next quarter. This easy-to-use, affordable, off-the-shelf solution will:

• Track the life of a foreign exchange exposure, from inception to realization,
• Document the related trade details and designations from execution through settlement,
• Output FAS 133 driven valuations, effectiveness tests and journal entries by entity in functional currency,
• Summarize disclosure data requirements for external reporting, and
• Provide hedge performance analysis.

Complete Solution Out of the Box

AcappellaFX is fully FAS 133 compliant out of the box, and has encoded in it Hedge Trackers' financial risk management and FAS 133 accounting best practices. It requires no customization, allowing you to be productive immediately, without an army of IT staff to help maintain it. Its ease of use ensures that new employees are trained on your processes, not spreadsheets, and although not complex, all the most common instruments are supported, including spots, outright and window forwards, and options.

Documentation, Not Just Output

FAS 133 imposes stringent documentation requirements, and Sarbanes-Oxley has compounded this by forcing management to ask for more frequent and accurate reports. AcappellaFX provides not only full FAS 133 documentation, but also timely and accurate reporting of information to management who are responsible for derivative accounting oversight.

Reports

• Exposure and hedge tracking, both from a company-wide and individual entity point of view
• Effectiveness testing results
• FAS 133 disclosures
• Management reports for monitoring derivative activities, risk levels, and adherence to established policies
• Journal entries by entity, in functional currency, with debits and credits to documented accounts
• Counterparty exposures and performance

Features

• Modular: special FAS 133 hedge accounting, simple mark to market for remeasurement hedges, or just FAS 52
• Supports remeasurement, cash flow, fair value, and net investment hedges
• Tracks spots, window and outright forwards, swaps and option contracts
• Provides trading and back-office functionality, including competitive bidding, settlements, and confirmations
• Monitors hedge effectiveness
• Calculates valuations from publicly available data and performs effectiveness testing
• Tracks FX exposures arising from intercompany transactions, non-functional assets/liabilities and anticipated and firm commitments
• Links exposures to trades
• Supports multiple entities and back-to-back trading
• Generates management and FAS 133 reports by entity or company-wide
• Ensures segregation of duties, and includes password encryption, audit trails, user classes, and electronic signature capability
• Allows user to set date and number preferences
• Interfaces to G/L for accounting entries

Security and Controls

With the advent of Sarbanes-Oxley, internal controls have never been more important. AcappellaFX imposes numerous controls, and provides independent valuations based on sound models and verifiable market data, as well as segregation of duties, password encryption, user classes, independent confirmation, strategy and trade authorization, and full audit trails.

Global Exposure Report (GER)

Using proprietary Hedge Trackers' algorithms developed over hundreds of engagements, GER takes a two dimensional approach to exposure reporting by looking at the exposures on an entity basis and on a currency basis. By tracking the changes to the net balance sheet position of a corporation's foreign subsidiaries period over period, the GER provides visibility to the nonfunctional currency net balance sheet positions by entity. The GER allows companies to:

• Identify and quantify nonfunctional currency exposures and any related hedges centrally in one source document
• Determine the financial impact and then recommend new hedge positions