Hedge Accounting & Compliance

Visual Risk™ is a market-leading solution for complying with today’s complex accounting standards. The system allows for easy designation, documentation and testing of hedge relationships under IAS 39. It delivers a full suite of reports to satisfy the most stringent requirements of current international accounting standards. It can also provide the quantitative analytics necessary for compliance with IFRS 7.

hedge

Hedge designation and documentation

Quickly links interest rate and FX exposures and hedges.
Generates fully IAS 39 compliant hedge documentation.
Allows use of flexible, user-defined hypothetical derivatives.

Powerful hedge effectiveness testing

Tests prospective and retrospective effectiveness using regression or dollar-offset.
Allows application of customisable hypothetical derivative for effectiveness testing.
Can split option valuation into time and intrinsic value.

Easily handles complex hedge accounting issues

Handles cross currency swaps and amortising structures.
Delivers defined-range effectiveness tests for options.
Can test relationships troubled by basis risk mismatches.

Comprehensive accounting and audit reporting

Generates all report outputs for IAS 39 audit purposes.
Calculates equity and P&L accounting entries for all relationships.
Values exposures and hedges excluding accrued interest, margin or forward points.

Simplifies IFRS 7 compliance reporting

Applies sensitivity analyses with user-defined market shocks.
Allocates market sensitivity results into potential impact on equity and P&L.
Generates liquidity risk disclosures using undiscounted cash flows.
Calculates counterparty credit risk based on user-defined parameters.