Wall Street Systems, the treasury systems specialists, have launched a new “hedge compliance module” to facilitate compliance with international hedge accounting standards such as FAS 133, IAS 39, AcG13 in Canada, and SAS 33 in Singapore.
The new Hedge Compliance Module replaces the original Hedge Accounting Module from Wall Street Systems, which has been available since May 2000. The new module includes improved documentation and reporting functionality. More analytics have been added, together with a greater flexibility in the accounts being posted to. The new module also enables valuations of external transactions to be uploaded from an external source allowing users to keep track of the change in value and necessary documentation.
The Wall Street System treasury engine provides mark-to-market revaluation of foreign exchange, money market and derivative instruments, including the posting of accounting entries for the change in value. The new Hedge Compliance Module enables users to report and account for hedge gains and losses on a fair market value basis. The system’s hedge tracking and linking functionality aims to bring exposures and hedging transactions together and automatically create the accounting entries necessary for each type of hedge classification. All valuations and changes in values are written to a time series database. Full audit query capabilities are embedded in the database, and users have access to summary information by date and can easily view hedge histories.
“The Wall Street System has long offered the capability to perform fair market valuations on both exposures and derivative transactions – a fundamental component of new hedge accounting requirements,” says Keith Bergman, business solutions manager for the module at Wall Street Systems. “However, many treasuries are still unprepared for the sheer magnitude of the documentation, accounting entries, and on-going assessment that comes with complying. With the launch of the new Hedge Compliance Module, The Wall Street System meets the requirements of the evolving worldwide hedge accounting standards. We have already received interest in the new module from clients in North America, Asia Pacific and Europe. In particular, we are working very closely with one of our European customers who plans to go-live with the Hedge Compliance Module before the end of this year – to ensure that they have one full year of data before the mandatory implementation date for IAS 39 on January 1, 2005 for listed companies in the EU.”