Hedge Accounting for Effective Risk Management

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Hedge Accounting for Effective Risk Management"

Transcription

1 Hedge Accounting for Effective Risk Management Tracey Ferguson Knight Director, Solution Consulting May 29, 2014

2 Agenda o Introduction to Hedge Accounting o Benefits of Hedge Accounting o Framework for Implementing a Program 2

3 What is Hedge Accounting? Basic Treatment o An entity shall recognize all of its derivative instruments in its statement of financial position as either assets or liabilities depending on the rights or obligations under the contracts. All derivative instruments shall be measured at fair value. (formerly SFAS 133, par 17) Hedge Accounting o Special accounting treatment that alters the normal accounting for one or more components of a hedge so that counterbalancing changes in the fair values of hedged items and hedging instruments, from the date the hedge is established, are not included in earnings in different periods. (formerly SFAS 133, par 320) 3

4 Introduction No Accrual Derivative? FV Hedge MtM Yes CF Hedge Definition of a Derivative: Characteristics of a derivative ASC (formerly SFAS 133, par 6) 83(a) Underlying 83(a) Notional amount 83(b) No (or minimal) initial net investment 83(c) Net settlement Basic Accounting Treatment: Derivatives are recorded at FMV, with changes in FMV recognized currently in earnings Hedge Types: Cash flow hedges are recorded at FMV with effective changes in FMV deferred in OCI Fair value hedges are recorded at FMV with offsetting gains and losses on the hedged item recognized currently in earnings 4

5 Major Provisions of Hedge Accounting o Documentation Risk Management Strategy and Objective Nature of the Hedged Risk Hedging Instrument Identified Hedged Item Defined Effectiveness Assessments and Ineffectiveness Measurement o Effectiveness Assessments Regression, Dollar Offset, Critical Terms, Shortcut o Ineffectiveness Measurement Lesser of the cumulative change o Disclosures 5

6 Agenda o Introduction to Hedge Accounting o Benefits of Hedge Accounting o Framework for Implementing a Program 6

7 Benefits of Hedge Accounting Benefit 1: Alignment of Derivative and Hedged Item Impacts on Income Statement Cash Flow Hedge Hedge Hedged Item Trade Date Recognize in Earnings Settlement Changes in derivative value are deferred to OCI until the hedged item impacts the income statement. Fair Value Hedge Recognize in Earnings Trade Date Settlement Hedge Hedged Item Changes in the hedged item value are booked to earnings at the same time as when the derivative changes. 7

8 Loss/Gain Loss/Gain Loss/Gain Loss/Gain Loss/Gain Loss/Gain Benefits of Hedge Accounting Benefit 2: P&L Volatility Reduction Cash Flow Hedge Forecast Sales FX Forward Net Acctg Impact No Hedge Accounting FX Rate FX Rate FX Rate FX rate at fcst date FX Fwd Rate FX Fwd Rate With Hedge Accounting FX Rate FX Rate FX Rate FX rate at fcst date FX Fwd Rate FX Fwd Rate 8

9 Benefits of Hedge Accounting Benefit 3: Improved Economic Hedging Performance Transaction Timeline: Txn Event Quote Order Sale/ Revenue Recognized Cash Received t0 t1 t2 t3 Rates Planning Acctg1 Acctg2 Potential P&L Impact Economic Risk Accounting + Economic Risk Hedge Type Cash Flow Fair Value Balance Sheet Objective: Minimize the difference between the hedge rate and planning rate 9

10 Benefits of Hedge Accounting Other benefits of implementing a hedge accounting program o Improved insight into underlying business exposures Companies are forced to analyze, measure and monitor business transactions on an ongoing basis o Process controllership Companies are required to have proper processes and controls 10

11 Agenda o Introduction to Hedge Accounting o Benefits of Hedge Accounting o Framework for Implementing a Program 11

12 Hedge Accounting Lifecycle Risk Management Framework Business Goals and Objectives Risk Appetite Risk Identification Assessment and Strategy Definition Execution Reporting Roles and Responsibilities Policies and Procedures Technology 12

13 High Level Derivative Lifecycle Hedge Accounting Lifecycle Designation Maintenance Termination Reporting Policy definition Exposure tracking Trade execution Hedge documentation Prospective and retrospective effectiveness testing Valuations Measurement Documentation of hedge termination OCI management 13

14 Implementation Framework Designation Maintenance Termination o Policy definition: Types of exposures, policy for hedging, operational controls Embed key HA language into policy and refer trade to this o Exposure tracking: Need repository to store exposure information (date, amount, revision history, actuals etc.) o Trade execution: Consider hedge accounting structure when executing trades (e.g. are internal derivatives needed) 14

15 Implementation Framework Designation Maintenance Termination FX Hedges Eligible for HA? Type Unrecognized firm commitment with an unrelated party Yes Fair Value Foreign currency denominated asset or liability Yes Fair Value Non-financial asset (e.g.,inventory or a fixed asset) Yes Fair Value Firm commitment to purchase a nonfinancial asset Yes Fair Value forecasted purchase or sale of a foreign currency-denominated financial asset with a third party Forecasted intercompany purchase or sale of a foreign currency denominated financial asset Receipt or payment of interest on a foreign currency denominated debt instrument Forecasted intercompany dividend Yes Yes Yes No Cash Flow Cash Flow Cash Flow Hedge of a forecast/firm commitment to purchase a foreign equity method Investment or business combination No 15

16 Implementation Framework Designation Maintenance Termination Documentation Requirement Hedge Type Objective and strategy Risk Assessment of Effectiveness Hedged Item Hedge Instrument Timing Details Cash Flow, Fair Value or Net Investment Hedge Need to define what the risk of the hedged item is along with the mitigation strategy Changes in FX, interest flows attributable to the benchmark rate, price Company expects that both at inception and on an ongoing basis the relationship will be highly effective Methods: 1) critical terms/shortcut, 2) dollar offset, 3) regression Need to be specific as to what the exposure is Need to refer to the specific derivative Designation must be made contemporaneously 16

17 Implementation Framework Designation Maintenance Termination o Prospective/Retrospective Effectiveness Testing Must be performed at least quarterly Optimal method is regression Specific guidance for options, forward contracts Impact of basis on commodities o Valuations Source of market data Confidence in pricing models o Measurement Book to ledger after adjusting for excluded components, ineffectiveness, lesser of the cumulative change Result is set of GL bookings 17

18 Implementation Framework Designation Maintenance Termination o o Cash Flow Hedges: Regular Termination (e.g. at expiry of hedge contract) Amounts in OCI are reclassified from OCI to income statement in same period as which the hedged item impacts the income statement Irregular Termination (e.g. failed effectiveness) Cumulative gain/loss on the derivative is discharged immediately from OCI to P&L Management Decision (e.g. de-designation prior to maturity) Amounts in OCI are reclassified from OCI to income statement in same period as which the hedged item impacts the income statement Fair Value Hedges: Cease adjusting the carrying value of the asset/liability/firm commitment An adjustment to the carrying value of hedged item is accounted for in the same manner as the hedged item itself (e.g. adjustment to inventory is held until the inventory is sold) 18

19 Implementation Framework Designation Maintenance Termination Other Considerations o Advanced FAS topics DIG Issues Treasury Center/Netting Intercompany Transactions Commodities Cross Currency Swaps o FAS 157 De-minimus testing Credit adjusted values (at contract or on a net basis) 19

20 The Reval Solution How We Help o Reval helps optimize our clients global treasury operations across: Cash Management Liquidity Management Financial Risk Management Hedge Accounting & Compliance o Fully scalable solution o World-wide coverage and support o Over 500 global clients 20

21 Q&A Tracey Ferguson Knight Director, Solution Consulting Reval

Hedging Interest-Rate Risk: A Primer in Instruments. & Accounting. September 29, 2015. Presented by: Ruth Hardie

Hedging Interest-Rate Risk: A Primer in Instruments. & Accounting. September 29, 2015. Presented by: Ruth Hardie Hedging Interest-Rate Risk: A Primer in Instruments September 29, 2015 & Accounting Presented by: Ruth Hardie Hedge Trackers, LLC Integrated Derivative Management Interest Rate, Foreign Currency and Commodities

More information

Using Hedge Accounting to Better Reflect Risk Mitigation Strategies. Jeff Craft Jason Weaver Deloitte & Touche LLP

Using Hedge Accounting to Better Reflect Risk Mitigation Strategies. Jeff Craft Jason Weaver Deloitte & Touche LLP Using Hedge Accounting to Better Reflect Risk Mitigation Strategies Jeff Craft Jason Weaver Deloitte & Touche LLP Agenda Benefits / Requirements / Challenges of Hedge Accounting Risk Management / What

More information

Alternative Energy Derivative and Hedge Accounting

Alternative Energy Derivative and Hedge Accounting Alternative Energy Derivative and Hedge Accounting Clint Carlin ccarlin@deloitte.com Jason Weaver jaweaver@deloitte.com Deloitte & Touche LLP Agenda Derivative Accounting and NPNS Jason Weaver Benefits

More information

Forex Hedge Accounting Treatment

Forex Hedge Accounting Treatment OANDA FX Consulting Forex Hedge Accounting Treatment Foreign Exchange Management Creating Cost and Revenue Certainty OANDA Corporation Revision 1.5 - 2 - Table of Contents Introduction... 3 Why Hedge?...

More information

DERIVATIVE ADDITIONAL INFORMATION

DERIVATIVE ADDITIONAL INFORMATION DERIVATIVE ADDITIONAL INFORMATION I. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES A. Definitions and Concepts 1. Derivative Instrument A "derivative instrument" is a financial instrument that "derives"

More information

Financial Instruments - Hedges. Section 3865

Financial Instruments - Hedges. Section 3865 Financial Instruments - Hedges Section 3865 Need for hedge accounting Mixed measurement and recognition models lead to timing differences Cost or amortized cost vs. fair value Other comprehensive income

More information

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED JUNE 30,

More information

The basics of accounting for derivatives and hedge accounting

The basics of accounting for derivatives and hedge accounting The basics of accounting for derivatives and hedge accounting This is the first paper in an ongoing series that outlines the principles of hedge accounting under current and expected International and

More information

Financial Instruments Hedges. Section 3865. Financial Instruments (slide 1)

Financial Instruments Hedges. Section 3865. Financial Instruments (slide 1) Financial Instruments Hedges Section 3865 Financial Instruments (slide 1) This presentation provides an overview of Section 3865, Hedges, published by the Accounting Standards Board on January 27, 2005.

More information

Hedge Accounting (w.r.t.) Forward Contracts

Hedge Accounting (w.r.t.) Forward Contracts Hedge Accounting (w.r.t.) Forward Contracts Agenda Introduction to Hedging Definitions Types of hedging relationships Fair value hedge Cash flow hedge Net investment hedge AS-11 V/s. AS-30 framework Hedging

More information

A primer on hedge ineffectiveness. Australia and New Zealand Banking Group Limited

A primer on hedge ineffectiveness. Australia and New Zealand Banking Group Limited A primer on hedge ineffectiveness Australia and New Zealand Banking Group Limited 1 AASB 139- the basic accounting mismatch An accounting mismatch arises where derivatives are used: to hedge financial

More information

Commodity Hedging and Hedge Accounting along the industrial Supply Chain

Commodity Hedging and Hedge Accounting along the industrial Supply Chain Commodity Hedging and Hedge Accounting along the industrial Supply Chain Dr Tilman Huhne, d-fine GmbH Lehrstuhl für Energiehandel und Finanzdienstleistungen Universität Duisburg-Essen Essen, June 21, 2011

More information

Derivatives, Measurement and Hedge Accounting

Derivatives, Measurement and Hedge Accounting Derivatives, Measurement and Hedge Accounting IAS 39 11 June 2008 Contents Derivatives and embedded derivatives Definition Sample of products Accounting treatment Measurement Active market VS Inactive

More information

IFRS Seminar for Regulators Accounting and Regulatory issues

IFRS Seminar for Regulators Accounting and Regulatory issues REPARIS A REGIONAL PROGRAM IFRS Seminar for Regulators Accounting and Regulatory issues GDLN Session 2: IAS 39 Financial Instruments: Recognition and Measurement Hedge accounting THE ROAD TO EUROPE: PROGRAM

More information

Cash Flow Hedge Basics, Interest Rate Swap Valuations & Foreign Currency Topics. Presented By: Ruth Hardie & Jim Shepard

Cash Flow Hedge Basics, Interest Rate Swap Valuations & Foreign Currency Topics. Presented By: Ruth Hardie & Jim Shepard Cash Flow Hedge Basics, Interest Rate Swap Valuations & Foreign Currency Topics Presented By: Ruth Hardie & Jim Shepard Agenda CNH vs. CNY: ASC 830 & ASC 815 Implications Valuing an Interest Rate Swap

More information

IFRS 9 Hedging in Practice Frequently asked questions

IFRS 9 Hedging in Practice Frequently asked questions www.pwc.co.uk IFRS 9 Hedging in Practice Frequently asked questions Corporate Treasury s March 2015 2 IFRS 9 Hedging in Practice Frequently asked questions PwC Preface Many companies are now considering

More information

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31,

More information

Note 8: Derivative Instruments

Note 8: Derivative Instruments Note 8: Derivative Instruments Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity prices

More information

different periods sometimes referred to as an accounting mismatch

different periods sometimes referred to as an accounting mismatch Matching the change in FV of the hedging instrument and the hedged item in profit or loss for the same period Hedge accounting is only an issue when normal accounting would put the two fair value changes

More information

IAS 39 Achieving hedge accounting in practice

IAS 39 Achieving hedge accounting in practice International Financial Reporting Standards IAS 39 Achieving hedge accounting in practice December 2005 www.pwc.com/ifrs PricewaterhouseCoopers (www.pwc.com) is the world s largest professional services

More information

ICANN Foreign Exchange Risk Management Policy May 2009

ICANN Foreign Exchange Risk Management Policy May 2009 ICANN Foreign Exchange Risk Management Policy May 2009 Table of Contents Page Number 1. Purpose 2 2. Scope 2 3. Objectives and Strategy 2 4. Definitions 2 5. FAS 133 and FAS 52 Accounting 4 6. Authorized

More information

Diocesan Finance & Registrar s Conference

Diocesan Finance & Registrar s Conference Diocesan Finance & Registrar s Conference July 2005 Michael Codling 1 Overview Background First time adoption Investment properties Property, Plant & Equipment Financial instruments main principles loans

More information

Guide To Foreign Exchange Policy

Guide To Foreign Exchange Policy Guide To Foreign Exchange Policy Silicon Valley Bank 3003 Tasman Drive Santa Clara, California 95054 408.654.7400 svb.com May 2011 Companies planning to operate in the global marketplace should prepare

More information

Tax accounting services: Foreign currency tax accounting. October 2012

Tax accounting services: Foreign currency tax accounting. October 2012 Tax accounting services: Foreign currency tax accounting October 2012 The globalization of commerce and capital markets has resulted in business, investment and capital formation transactions increasingly

More information

NEED TO KNOW. Hedge Accounting (IFRS 9 Financial Instruments)

NEED TO KNOW. Hedge Accounting (IFRS 9 Financial Instruments) NEED TO KNOW Hedge Accounting (IFRS 9 Financial Instruments) 2 HEDGE ACCOUNTING (IFRS 9 FINANCIAL INSTRUMENTS) TABLE OF CONTENTS Table of contents 2 1. Introduction 4 2. Existing guidance and the rationale

More information

Statement of Statutory Accounting Principles No. 86

Statement of Statutory Accounting Principles No. 86 Statement of Statutory Accounting Principles No. 86 Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions STATUS Type of Issue: Common Area

More information

Foreign Currency Forward Contracts and Cash Flow Hedging. Navigating Accounting and Disclosure Requirements. & A accounting

Foreign Currency Forward Contracts and Cash Flow Hedging. Navigating Accounting and Disclosure Requirements. & A accounting A & A accounting C C O U N T I N G U D I T I N G Foreign Currency Forward Contracts and Cash Flow Hedging Navigating Accounting and Disclosure Requirements By Josef Rashty and John O'Shaughnessy C ompanies

More information

FAS 133 Reporting and Foreign Currency Transactions

FAS 133 Reporting and Foreign Currency Transactions FAS 133 Reporting and Foreign Currency Transactions Participating Forwards An opinion on the Appropriate Accounting & Authority with Relevant Accounting Citations RISK LIMITED CORPORATION 2007 Risk Limited

More information

IFRS 9 CHAPTER 6 HEDGE ACCOUNTING

IFRS 9 CHAPTER 6 HEDGE ACCOUNTING IFRS 9 CHAPTER 6 HEDGE ACCOUNTING Implementation Guidance 1 IFRS Foundation DRAFT IMPLEMENTATION GUIDANCE GUIDANCE ON IMPLEMENTING IFRS 9 FINANCIAL INSTRUMENTS Illustrative examples Questions and answers

More information

Note 10: Derivative Instruments

Note 10: Derivative Instruments Note 10: Derivative Instruments Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity

More information

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter)

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period

More information

Accounting for Interest Rate Derivatives

Accounting for Interest Rate Derivatives The accounting rules governing derivatives are covered in FASB Accounting Standards Codification ( FASB ASC ) Topic 815 Derivatives and Hedging. Derivatives must be measured and reported at fair value.

More information

DERIVATIVE ACCOUNTING & HEDGING UNDER FAS 133

DERIVATIVE ACCOUNTING & HEDGING UNDER FAS 133 DERIVATIVE ACCOUNTING & HEDGING UNDER FAS 133 By Jeffrey B. Wallace Managing Partner Greenwich Treasury Advisors LLC 1. Introduction...1 2. Historical Background...1 3. FAS 133 Framework...2 4. Derivative

More information

Exposure Draft. Guidance Note on Accounting for Derivative Contracts

Exposure Draft. Guidance Note on Accounting for Derivative Contracts Exposure Draft Guidance Note on Accounting for Derivative Contracts (Last date of comments: January 21, 2015) Issued by Research Committee The Institute of Chartered Accountants of India (Set up by an

More information

Accounting for Derivatives

Accounting for Derivatives Accounting for Derivatives 1 Accounting for Derivatives Copyright 2014 by DELTACPE LLC All rights reserved. No part of this course may be reproduced in any form or by any means, without permission in writing

More information

Q Financial Information

Q Financial Information Q1 2016 Financial Information Financial Information 3 Key Figures 6 Interim Consolidated Financial Information (unaudited) 6 Interim Consolidated Income Statements 7 Interim Condensed Consolidated Statements

More information

Interaction of FAS 157 with FAS 133:

Interaction of FAS 157 with FAS 133: Interaction of FAS 157 with FAS 133: The Second Wave By: Peter Seward, Vice President, Product Strategy, Reval June 2, 2009 CONTENT Executive Summary Introduction FAS 157 Fair Valuations Impact on FAS

More information

Financial Instruments and Related Risk Management

Financial Instruments and Related Risk Management Note 24 Share-Based Compensation continued Other Plans The company offers a deferred share unit plan to non-employee directors, which allows each to choose to receive, in the form of deferred share units

More information

uide Guide to Foreign Exchange Policy

uide Guide to Foreign Exchange Policy uide Guide to Foreign Exchange Policy GUIDE TO FOREIGN EXCHANGE POLICY 1 Guide to Foreign Exchange Policy Companies planning to operate in the global marketplace should prepare for the inevitable risks

More information

136 ST ENGINEERING / ABOVE & BEYOND

136 ST ENGINEERING / ABOVE & BEYOND 136 ST ENGINEERING / ABOVE & BEYOND Independent auditors report Members of the Company Singapore Technologies Engineering Ltd Report on the financial STATEMENTS We have audited the accompanying financial

More information

York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT.

York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT. York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2014 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION December

More information

IDEXX LABORATORIES, INC. (Exact name of registrant as specified in its charter)

IDEXX LABORATORIES, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly

More information

(Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions.

(Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions. Notes to the Consolidated Financial Statements (Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions.) 1. Significant

More information

Foreign Currency Transactions and Hedging

Foreign Currency Transactions and Hedging Foreign Currency Transactions and Hedging History of Currency 1945-1973: US dollar was pegged to gold and other currencies were pegged to the dollar 1960 s: US had a balance of payments deficit o Other

More information

Finnpapers Inc. (case package p.37-39) Cash Flow Statement. Cash Flow Statement cont d. Cash Flow

Finnpapers Inc. (case package p.37-39) Cash Flow Statement. Cash Flow Statement cont d. Cash Flow Finnpapers Inc. (case package p.37-39) Cash Flow Statement There will not be any questions on this Finnpapers Inc. case in the exam Useful in providing users of financial statements with a basis to assess

More information

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter)

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period

More information

(1.1) (7.3) $250m 6.05% US$ Guaranteed notes 2014 (164.5) Bank and other loans. (0.9) (1.2) Interest accrual

(1.1) (7.3) $250m 6.05% US$ Guaranteed notes 2014 (164.5) Bank and other loans. (0.9) (1.2) Interest accrual 17 Financial assets Available for sale financial assets include 111.1m (2013: 83.0m) UK government bonds. This investment forms part of the deficit-funding plan agreed with the trustee of one of the principal

More information

Mitsubishi International Corporation and Subsidiaries (A Wholly Owned Subsidiary of Mitsubishi Corporation (Americas))

Mitsubishi International Corporation and Subsidiaries (A Wholly Owned Subsidiary of Mitsubishi Corporation (Americas)) Mitsubishi International Corporation and Subsidiaries (A Wholly Owned Subsidiary of Mitsubishi Corporation (Americas)) Consolidated Financial Statements as of and for the Year Ended March 31, 2014, and

More information

Cathay Life Insurance Co., Ltd. Financial Statements For The Three Months Ended March 31, 2012 and 2011 With Independent Auditors Review Report

Cathay Life Insurance Co., Ltd. Financial Statements For The Three Months Ended March 31, 2012 and 2011 With Independent Auditors Review Report Financial Statements For The Three Months Ended March 31, 2012 and 2011 With Independent Auditors Review Report The reader is advised that these financial statements have been prepared originally in Chinese.

More information

Treasury Management and Regulatory Compliance Solution Suite

Treasury Management and Regulatory Compliance Solution Suite TRIPLE POINT SOLUTION BRIEF Treasury Management and Regulatory Compliance Solution Suite COMMODITY XL FOR HEDGE ACCOUNTING COMMODITY XL FOR FAIR VALUE DISCLOSURE TRIPLE POINT TECHNOLOGY, INC. TPT.COM HEDGE

More information

Hedge Accounting FBS 2013 USER CONFERENCE

Hedge Accounting FBS 2013 USER CONFERENCE Hedge Accounting FBS 2013 USER CONFERENCE Purpose of a Hedge Provide a change in value of the hedging instrument in the oppositedirection of the hedged item. For taxpurposes, the gains or losses on from

More information

Cathay Life Insurance Co., Ltd. Financial Statements As of December 31, 2006 and 2007 With Independent Auditors Report

Cathay Life Insurance Co., Ltd. Financial Statements As of December 31, 2006 and 2007 With Independent Auditors Report Financial Statements With Independent Auditors Report The reader is advised that these financial statements have been prepared originally in Chinese. These financial statements do not include additional

More information

CHAPTER 18 ASC TOPIC 320: INVESTMENTS DEBT AND EQUITY SECURITIES

CHAPTER 18 ASC TOPIC 320: INVESTMENTS DEBT AND EQUITY SECURITIES CCH brings you... CHAPTER 18 ASC TOPIC 320: INVESTMENTS DEBT AND EQUITY SECURITIES from the Special Edition GAAP Financial Statement Disclosures Manual Visit CCHGroup.com/AASolutions for an overview of

More information

Notes to the Interim Consolidated Financial Information (unaudited)

Notes to the Interim Consolidated Financial Information (unaudited) Note 1. The Company and basis of presentation ABB Ltd and its subsidiaries (collectively, the Company) together form a leading global company in power and automation technologies that enable utility and

More information

OREGON ACCOUNTING MANUAL

OREGON ACCOUNTING MANUAL Statewide Policy OREGON ACCOUNTING MANUAL Subject: Accounting and Financial Reporting Number: 15.20.00 Division: Chief Financial Office Effective date: July 16, 2015 Chapter: Accounting and Financial Reporting

More information

G8 Education Limited ABN: 95 123 828 553. Accounting Policies

G8 Education Limited ABN: 95 123 828 553. Accounting Policies G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3

More information

ASPE AT A GLANCE Section 3856 Financial Instruments

ASPE AT A GLANCE Section 3856 Financial Instruments ASPE AT A GLANCE Section 3856 Financial Instruments December 2014 Section 3856 Financial Instruments Effective Date Fiscal years beginning on or after January 1, 2011 1 SCOPE Applies to all financial instruments

More information

Statement of Financial Accounting Standards No. 133

Statement of Financial Accounting Standards No. 133 Statement of Financial Accounting Standards No. 133 FAS133 Status Page FAS133 Summary Accounting for Derivative Instruments and Hedging Activities June 1998 Financial Accounting Standards Board of the

More information

128 SU 3: Financial Accounting I

128 SU 3: Financial Accounting I 128 SU 3: Financial Accounting I 3.5 FINANCIAL ASSETS AND LIABILITIES Definitions 1. Financial assets include cash, equity instruments of other entities (e.g., preference shares), contract rights to receive

More information

www.pwc.co.uk Practical guide General hedge accounting December 2013

www.pwc.co.uk Practical guide General hedge accounting December 2013 www.pwc.co.uk Practical guide General hedge accounting December 2013 Contents 1. Introduction 1 1.1. Overview of IFRS 9 1 1.2. General hedge accounting 1 2. Hedge accounting 3 2.1. What is hedge accounting?

More information

Notes to the Interim Consolidated Financial Information (unaudited)

Notes to the Interim Consolidated Financial Information (unaudited) Note 1. The Company and basis of presentation ABB Ltd and its subsidiaries (collectively, the Company) together form a leading global company in power and automation technologies that enable utility and

More information

International Financial Reporting Standard 7. Financial Instruments: Disclosures

International Financial Reporting Standard 7. Financial Instruments: Disclosures International Financial Reporting Standard 7 Financial Instruments: Disclosures INTERNATIONAL FINANCIAL REPORTING STANDARD AUGUST 2005 International Financial Reporting Standard 7 Financial Instruments:

More information

Excerpt from the ACGR on Enterprise Risk Management

Excerpt from the ACGR on Enterprise Risk Management Excerpt from the ACGR on Enterprise Risk Management F. RISK MANAGEMENT SYSTEM 1) Disclose the following: (a) Overall risk management philosophy of the company; Objectives and Policies The Group has significant

More information

SunGard Capital Corp. SunGard Capital Corp. II SunGard Data Systems Inc.

SunGard Capital Corp. SunGard Capital Corp. II SunGard Data Systems Inc. United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (Mark One) Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period

More information

Financial Statement Presentation Phase B

Financial Statement Presentation Phase B 30 Cannon Street, London EC4M 6XH, England International Phone: +44 (0)20 7246 6410, Fax: +44 (0)20 7246 6411 Accounting Standards Email: iasb@iasb.org Website: http://www.iasb.org Board This document

More information

Consolidated financial statements 2014. Zurich Insurance Group Annual Report 2014

Consolidated financial statements 2014. Zurich Insurance Group Annual Report 2014 Consolidated financial statements 2014 Annual Report 2014 2 Annual results 2014 Consolidated financial statements Contents Consolidated income statements 3 Consolidated statements of comprehensive income

More information

Variable Annuity Living Benefits

Variable Annuity Living Benefits Variable Annuity Living Benefits Darryl Wagner, Deloitte Consulting Agenda Types of Living Benefits Introduction to FAS133 Definition of a Derivative Identifying Embedded Derivatives Valuing Contracts

More information

Accounting for Derivatives. Rajan Chari Senior Manager rchari@deloitte.com

Accounting for Derivatives. Rajan Chari Senior Manager rchari@deloitte.com Accounting for Derivatives Rajan Chari Senior Manager rchari@deloitte.com October 3, 2005 Derivative Instruments to be Discussed Futures Forwards Options Swaps Copyright 2004 Deloitte Development LLC.

More information

Commodity Hedge Accounting An Introduction

Commodity Hedge Accounting An Introduction An Introduction Risk Management Breakfast Dr Constantin Sobiella Accounting, Compliance and Corporate Finance London, 11 April 2008 Agenda Commodity Hedge Accounting Introduction & Motivation IAS 39 Financial

More information

Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009

Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009 Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 Q

More information

(c) Are insurance contracts monetary items? (paragraphs 13-14)

(c) Are insurance contracts monetary items? (paragraphs 13-14) IASB/FASB Meeting June 2010 week beginning 14 June IASB agenda reference FASB memo reference 2D 50D Project Topic Insurance Contracts Foreign currency cash flows Purpose of this paper 1. This paper deals

More information

New items for initial consideration IFRS 9 Financial Instruments Net investment hedges

New items for initial consideration IFRS 9 Financial Instruments Net investment hedges STAFF PAPER IFRS Interpretations Committee Meeting November 2015 Project Paper topic New items for initial consideration IFRS 9 Financial Instruments Net investment hedges CONTACT(S) Mariela Isern misern@ifrs.org

More information

Hedge Accounting: Cross Currency Interest Rate Swaps Minimising P&L Volatility. By: Blaik Wilson, Solutions Consultant, Reval. July, 2011 CONTENT

Hedge Accounting: Cross Currency Interest Rate Swaps Minimising P&L Volatility. By: Blaik Wilson, Solutions Consultant, Reval. July, 2011 CONTENT Hedge Accounting: Cross Currency Interest Rate Swaps Minimising P&L Volatility By: Blaik Wilson, Solutions Consultant, Reval July, 2011 CONTENT Executive Summary Introduction Economic Hedge vs. Accounting

More information

Notes to Consolidated Financial Statements Note 1: Basis of Presentation

Notes to Consolidated Financial Statements Note 1: Basis of Presentation NOTES TO CONSOLIDATED FINANCIAL STATEMENTS to Consolidated Financial Statements Note 1: Basis of Presentation Bank of Montreal ( the bank ) is a public company incorporated in Canada having its registered

More information

IFRS News. IFRS 9 Hedge accounting. December 2013

IFRS News. IFRS 9 Hedge accounting. December 2013 Special Edition on Hedge accounting IFRS News December 2013 IFRS 9 Hedge accounting The IASB has published Chapter 6 Hedge Accounting of IFRS 9 Financial Instruments (the new Standard). The new requirements

More information

New on the Horizon: Hedge accounting

New on the Horizon: Hedge accounting IFRS New on the Horizon: Hedge accounting January 2011 kpmg.com/ifrs Contents 1. Highlights 2 2. Introduction and background 4 2.1 Overview of the IAS 39-replacement project 4 3. Overview 5 4. Objective

More information

IFRS News. IFRS 9 Hedge accounting

IFRS News. IFRS 9 Hedge accounting Special Edition on Welcome Hedge accounting IFRS News IFRS 9 Hedge accounting The IASB has published Chapter 6 Hedge Accounting of IFRS 9 Financial Instruments (the new Standard). The new requirements

More information

Significant Accounting Policies

Significant Accounting Policies Apart from the accounting policies presented within the corresponding notes to the financial statements, other significant accounting policies are set out below. These policies have been consistently applied

More information

APPLE INC FORM 10-Q. (Quarterly Report) Filed 04/24/14 for the Period Ending 03/29/14

APPLE INC FORM 10-Q. (Quarterly Report) Filed 04/24/14 for the Period Ending 03/29/14 APPLE INC FORM 10-Q (Quarterly Report) Filed 04/24/14 for the Period Ending 03/29/14 Address ONE INFINITE LOOP CUPERTINO, CA 95014 Telephone (408) 996-1010 CIK 0000320193 Symbol AAPL SIC Code 3571 - Electronic

More information

Accounting for Interest Rate Derivatives. Frank Wilary and Douglas Winn

Accounting for Interest Rate Derivatives. Frank Wilary and Douglas Winn Accounting for Interest Rate Derivatives FAS ASC 815 Presented by Frank Wilary and Douglas Winn May 1, 2014 1 Describe hedge accounting and provide examples Address hedge effectiveness testingti Define

More information

Financial Results. George Weston Limited 2010 Annual Report 67

Financial Results. George Weston Limited 2010 Annual Report 67 Financial Results Management s Statement of Responsibility for Financial Reporting 68 Independent Auditors Report 69 Consolidated Financial Statements 70 Consolidated Statements of Earnings 70 Consolidated

More information

ISSUES INVOLVING FOREIGN CURRENCY

ISSUES INVOLVING FOREIGN CURRENCY Advanced Accounting 1005-83B Issues Involving Foreign Currency Page 1 I. SFAS No. 52. "Foreign Currency Translation" ISSUES INVOLVING FOREIGN CURRENCY A. Background: In SFAS No. 8 "Foreign Currency Translation"

More information

FINANCIAL INFORMATION CONSOLIDATED FINANCIAL STATEMENTS. Risk management

FINANCIAL INFORMATION CONSOLIDATED FINANCIAL STATEMENTS. Risk management 167 Risk management Group risk management Group Risk Management supports the Board of Directors, the Executive Committee and the management teams of the Group companies in their strategic decisions. Group

More information

The new world under FAS 133: Cross-Currency Interest Rate Swaps

The new world under FAS 133: Cross-Currency Interest Rate Swaps The new world under FAS 133: Cross-Currency Interest Rate Swaps As many US listed companies are fast realizing, the accounting requirements under Financial Accounting Standard No. 133 generate reported

More information

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At December 28, 2014 and December 29, 2013 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2014 2013 Assets Current assets

More information

Summary of Significant Differences between Japanese GAAP and U.S. GAAP

Summary of Significant Differences between Japanese GAAP and U.S. GAAP Summary of Significant Differences between Japanese GAAP and U.S. GAAP The consolidated financial statements of SMFG and its subsidiaries presented in this annual report conform with generally accepted

More information

Global Value Fund Limited A.B.N. 90 168 653 521. Appendix 4E - Preliminary Financial Report for the year ended 30 June 2015

Global Value Fund Limited A.B.N. 90 168 653 521. Appendix 4E - Preliminary Financial Report for the year ended 30 June 2015 A.B.N. 90 168 653 521 Appendix 4E - Preliminary Financial Report for the year ended 30 June 2015 Appendix 4E - Preliminary Financial Report For the year ended 30 June 2015 Preliminary Report This preliminary

More information

Guidance on Implementing Financial Instruments: Recognition and Measurement

Guidance on Implementing Financial Instruments: Recognition and Measurement STATUTORY BOARD SB-FRS 39 FINANCIAL REPORTING STANDARD Guidance on Implementing Financial Instruments: Recognition and Measurement CONTENTS SECTION A SCOPE A.1 Practice of settling net: forward contract

More information

3. Market risks and derivatives. Foreign currency risk management

3. Market risks and derivatives. Foreign currency risk management 3. Market risks and derivatives The Company is exposed to a variety of financial risks: market risks (including foreign currency exchange risk and interest rate risk), credit risk, liquidity and capital

More information

Financial Instruments Where are we? Recognition and Measurement Impairment Derivatives

Financial Instruments Where are we? Recognition and Measurement Impairment Derivatives Financial Instruments Where are we? Recognition and Measurement Impairment Derivatives Susan Cosper Kirk Silva Mark LaMonte Robert Uhl Financial Instruments Needs Fixing? FASB issued a new standard on

More information

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter)

ADOBE SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period

More information

20/03/2014. New UK GAAP Accounting for financial instruments 20 March 2014 Download the slides to accompany the webinar icaew.com/frfwebinarresources

20/03/2014. New UK GAAP Accounting for financial instruments 20 March 2014 Download the slides to accompany the webinar icaew.com/frfwebinarresources New UK GAAP Accounting for financial instruments 20 March 2014 Download the slides to accompany the webinar /FRFwebinarresources Introduction Sarah Porthouse Technical Manager, Financial Reporting Faculty

More information

DERIVATIVES IMPLEMENTATION GROUP

DERIVATIVES IMPLEMENTATION GROUP DERIVATIVES IMPLEMENTATION GROUP The Derivatives Implementation Group is a task force that was created to assist the FASB in answering questions that companies will face when they begin implementing Statement

More information

FUHWA FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS

FUHWA FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FUHWA FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS March 31, 2007 and 2006 (With Independent Auditors' Report Thereon) Address: 9F, No. 4, Sec. 1, Jhongsiao W. Road, Taipei

More information

Mitchells & Butlers plc Accounting policies under IFRS

Mitchells & Butlers plc Accounting policies under IFRS Mitchells & Butlers plc Accounting policies under IFRS 7 December 2005 Background With effect from 2 October 2005, Mitchells & Butlers plc ( the Group ) is required to prepare its consolidated financial

More information

Apple Inc. (Exact name of Registrant as specified in its charter)

Apple Inc. (Exact name of Registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period

More information

New on the Horizon: Hedge accounting

New on the Horizon: Hedge accounting IFRS New on the Horizon: Hedge accounting September 2012 kpmg.com/ifrs Contents Closer alignment of hedge accounting and risk management 1 1. Almost there 2 2. How this could affect you 3 3. Setting the

More information

Module 8: Translation and Consolidation of Foreign Subsidiaries:

Module 8: Translation and Consolidation of Foreign Subsidiaries: Module 8: Translation and Consolidation of Foreign Subsidiaries: Part 1: Foreign currency risk is the net potential gain or loss, which can arise from changes in the exchange rates, to the foreign currency

More information

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2012

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2012 For the financial year ended 31 March These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. GENERAL The Company, Singapore Telecommunications

More information

Consolidated Balance Sheets

Consolidated Balance Sheets Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 $ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:

More information