Transitioning to IFRS9: What to look out for
PMC Analytics is a web-based hedge accounting solution that will help you comply with the new regulatory changes arising from IFRS 9.
The new regulatory changes arising from IFRS 9 (Effective January 2018):
- Entities are now required to formally document a hedge strategy which has implications for designating future hedge relationships
- FRS 9 only requires an ‘economic relationship’ between the hedging derivative and the hedged item and removes bright line requirements for determining a highly effective hedge
- Hedging entities can now defer and amortise the time value of options used to hedge one-sided risks useful when using rate caps or FX options to manage risk
Credit-adjusted valuations and ongoing testing are still necessary on a periodic basis under IFRS 9, which are easily managed in PMC Analytics.
How can your business benefit from PMC Analytics?
- Easier hedge accounting and faster reporting, with an intuitive, user-friendly interface
- Document, test and account for your hedge relationships in line with IFRS 9
- 24/7 secure web access to mid-market and credit risk-adjusted variations
- Historical and projected derivative cash flows
- Verify bank derivative payment calculations
- Trade-specific and level risk metrics
- Downloadable valuation detail reports
- Document repository
- Non-performance risk-adjusted fair value for ASC 820/IFRS 13 compliance
If you’d like to set a new standard and enjoy faster, easier hedge accounting, please contact us for a demo.