Transitioning to IFRS9: What to look out for

INFLATION-Inflation-Hedging-Utility

“We are committed to helping our clients transition seamlessly to IFRS9 for derivative valuations and accounting – PMC Analytics achieves this goal.” – Chris Danielian

Chris Danielian

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.

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