Hedge Accounting Documentation
End-to-end designation packs, hedge relationships and risk management strategy documentation for fair value, cash flow and net investment hedges. Aligned to IFRS 9, IAS 39 (banking macro hedging) and ASC 815.
Our Services · Hedge Accounting
Hedge accounting & outsourced services for corporates and banks under IFRS and US GAAP
Technical advisory and fully outsourced operations across IFRS 9, IAS 39 and ASC 815 — delivered by hedge accountants who have run the function inside corporates and banks, not by generalists with a slide deck.
Capabilities
The full hedge accounting lifecycle
From designation through effectiveness testing, valuation, journals and disclosure. Every element documented, auditable and aligned to the risk management objective the business actually runs.
Effectiveness Testing
Prospective and retrospective effectiveness assessment, qualitative and quantitative methods, regression and dollar-offset where appropriate. Re-balancing and rebalancing-driven adjustments under IFRS 9.
Independent Valuations
Independent fair value of derivatives and embedded derivatives across all asset classes — IRS, cross-currency swaps, FX forwards and options, commodity hedges, swaptions and structured products.
XVA (CVA / DVA / FVA)
Counterparty valuation adjustments under ASC 820 and IFRS 13. Expected exposure modelling, collateral effects and disclosure-ready output that integrates with your existing valuation engine.
Component & Macro Hedging
Component hedging of risk components in non-financial items under IFRS 9. Macro hedging of dynamic banking portfolios under the IAS 39 carve-out and the IASB's evolving DRM model.
Transition to RMA
Transition roadmap from traditional IAS 39 / IFRS 9 hedge accounting to Risk Management Accounting — aligning financial reporting with how the business actually manages risk and reducing P&L volatility.
Standards
Fluent in both IFRS and US GAAP
Most of our clients report under one and consolidate under the other. We work the boundary in both directions.
IFRS 9 · IAS 39 · IFRS 13
IFRS
Cash flow, fair value and net investment hedges under IFRS 9 for corporates. IAS 39 macro hedging carve-out for banks until the IASB's Dynamic Risk Management model is finalised. IFRS 13 fair value hierarchy and disclosure.
- Risk management objective and strategy documentation
- Eligible hedged items and hedging instruments
- Effectiveness testing and rebalancing
- Cost-of-hedging accounting
- Disclosures under IFRS 7
ASC 815 · ASC 820
US GAAP
Cash flow, fair value and net investment hedges under ASC 815 with the post-2017 ASU 2017-12 simplifications. ASC 820 fair value framework, Level 1 / 2 / 3 inputs and disclosure for derivative valuations.
- Last-of-layer and partial-term fair value hedges
- Critical-terms-match and qualitative effectiveness
- Subsequent quantitative reassessment
- Cross-currency basis spread treatment
- Disclosure under ASC 815-10-50
Outsourced Operations
Hand the function over — keep the control
Many treasuries do not have, and do not need, a full-time hedge accountant. The work is technical, the volumes are lumpy, and the audit risk is concentrated in a few weeks of the year. Our managed service runs the function end-to-end so the team can focus on the underlying risk decisions.
Everything sits inside your governance — your designation policy, your approved methodology, your sign-off chain. We deliver the production work, the evidence, and the auditor responses; you keep accountability and visibility.
- Monthly hedge accounting close — designation, effectiveness testing and journal entries
- Independent derivative and XVA valuations on every reporting date
- Maintenance of designation packs and hedge documentation library
- Rebalancing analysis and rebalancing journal preparation
- Disclosure tables for IFRS 7 / ASC 815-10-50 ready for the auditors
- Quarterly board / ALCO reporting on hedge effectiveness and P&L impact
- Full audit support — first-line responses, walkthroughs and evidence
- Model risk governance and independent model validation where required
Insights & Brochures
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Brochure
Hedge Accounting Services
Our technical advisory practice for hedge accounting, financial risk management and regulation.
Read the brochure
Brochure
Risk Management Accounting (RMA)
Guide to transitioning from hedge accounting to Risk Management Accounting under IFRS 9, aligning accounting with economic risk management.
Read the RMA insights
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