With their plates already pretty full, CFOs will have to re-evaluate their hedge accounting strategies to mitigate a new wave of exposure challenges caused by volatile energy and equity markets. The volatility will challenge income and equity levels, especially if firms fail to properly account for the hedging derivative and hedged item in the same way.
The market shocks to the system come as new regulations are pending to initiate the clearing and execution of over-the-counter (OTC) derivatives trading, which is likely to redefine hedge accounting. This white paper reviews forthcoming changes to the current system of hedge accounting. It looks at the implications of these changes and will provide you with technological solutions to help your organisation deal with them.