Hedge Accounting and Fair Value Disclosure Software
The increasingly stringent and unforgiving regulatory environment calls for a modern, next-generation, integrated commodity trading and risk management system. Organizations that attempt to comply with Hedge Accounting regulations ASC 815 (FAS 133), IAS 39 (IFRS 9), CICA 3865, AASB 139, SAS 133 and ASC 815-10 (FAS 161) and Fair Value Disclosure regulations ASC 820 (FAS 157) and IFRS 7 without a sophisticated system put company reputation, earnings and stock value at risk.
Business Problem: Wildly Fluctuating Earnings
While hedging can minimize economic risk from commodity price fluctuations, it also creates a difficult and complex management problem. Volatility of derivatives, marked-to-market and shown on the income statement, can create large swings in earnings from period to period. Wildly fluctuating earnings are in direct conflict with investors' desires for smooth earnings growth, putting company and management reputation at risk.
Commodity XL for Hedge Accounting™ supports a comprehensive risk management program that enables firms to balance optimal economic benefit, risk management and stable financial statements. It provides a single platform to effortlessly ensure compliance with ASC 815 (FAS 133) and IAS 39 (IFRS 9) requirements and other hedge accounting standards. Powerful analytical functionality including OCI sensitivity analysis, formula curves and backtesting help measure hedge effectiveness and optimize hedging strategies.
- Foreign Exchange
- Interest Rate
Fair Value Disclosure
Business Problem: Regulation Requires Fair Value Disclosure of Hard to Value Securities
ASC 820 (FAS 157) and IFRS 7 require organizations to derive market prices for multiple types of assets and liabilities. Companies must measure and disclose the "mark-to-model" techniques and worth of hard to value instruments. Organizations risk investors, regulators, counterparties and other stakeholders losing faith in reported financials if they don’t have the tools to produce consistent and transparent disclosures for all three levels required by the accounting standards.
Commodity XL for Fair Value Disclosure™ is Triple Point's comprehensive solution for ASC 820 (FAS 157) and IFRS 7 compliance. It provides the tools and framework to define, measure and manage fair value levels and meet all disclosure requirements. Commodity XL for Fair Value Disclosure provides the consistency and comparability of fair value measurements for stakeholders to confidently do business with your organization.
Triple Point’s Treasury and Compliance solutions are available on a licensed or Software as a Service (SaaS) basis. The solutions are used across the energy, commodity trading, consumer products and agricultural industries. Advisory firms, such as Sirius Solutions, also use the solutions to manage derivative valuation and hedge reporting on behalf of their clients.
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How to get started
- To learn more about the Triple Point Treasury Management and Regulatory Compliance Solution Suite and what it can do for your supply, marketing, trading and scheduling activities, download a brochure
, request more information
or call +1.203.291.7979.