PMC Analytics facilitates a seamless implementation of Hedge Accounting.

Hedge Accounting

PMC Analytics services all your hedge accounting needs. Hedge accounting treatment reduces income statement volatility caused by changes in the market value of a derivative instrument.  The standards for derivative hedge accounting are complex, making compliance challenging and costly to implement and maintain.

Our hedge accounting service begins with pre-trade analysis and documentation, and continues through to periodic effectiveness testing, valuations and journal entries.  PMC Analytics clients are both diverse and global in nature which ensures we have a broad experience and are familiar with current best practice.

Valued Services

Pre-trade Analysis

  • We assess whether the hedge relationship qualifies for special hedge accounting treatment.

Formal Documentation

  • PMC Analytics prepares formal hedge documentation with the goal of maintaining hedge accounting throughout the life of the derivative.
  • Our documentation details the hedged risk, hedge objective, methodology for ongoing effectiveness testing, and process for recording derivative results.

Ongoing Service

At the end of each reporting period, PMC Analytics:

  • Re-assesses the hedge relationship to confirm that it remains highly effective.
  • Delivers detailed nonperformance risk-adjusted values.
  • Provides draft journal entries.

Client Support

  • We are always available to assist our clients with derivative related auditor inquiries.
  • SOC 1 compliant.