Hedge Accounting

Our hedge accounting team is dedicated to assisting clients in successfully navigating the complexities of IAS 39/IFRS 9 and IFRS 7 and helping them align the optimal economic hedging structures with the most appropriate and favorable accounting treatments. By matching the timing of the earnings recognition of the derivative with the hedged asset, liability, or forecasted transaction, companies can significantly reduce or eliminate earnings volatility that otherwise would be recognized in the financial statements. However, complying with these requirements is no easy task-to succeed, companies need deep experience and strong technical competence. Chatham has both.

“Chatham’s hedge accounting expertise is second to none, and their service-oriented culture has been very responsive to our needs. They significantly ease the burden associated with hedge accounting, valuations, and financial reporting.”

Deep Experience
Our hedge accounting team leverages years of experience consulting on and accounting for thousands of hedging relationships, as well as our team members’ previous experiences working at the FASB, Big Four public accounting firms, and other large corporate entities, to:

• Assist hundreds of companies around the world achieve their hedge accounting objectives and comply with the complex hedge accounting and reporting requirements of IAS 39/IFRS 9 and IFRS 7
• Deliver exceptional hedge accounting services that are timely, accurate, and objective
• Provide peace of mind to our clients and their auditors that hedge accounting is being properly applied to their derivative transactions

Strong Technical Competence
Our comprehensive hedge accounting services are designed to reduce the complexities that accompany hedge accounting and are tailored to address the specific needs of each client. We provide technical consulting, analysis, and education on the accounting impact of hedging structures in advance of executing those transactions and remain heavily involved throughout the life of the hedging relationship by providing the services and deliverables necessary to properly apply hedge accounting, including:

• Ongoing technical consultation with our clients and their auditors/regulators
• Hedge designation memos
• Hedge valuations that satisfy the requirements of either IAS 39/IFRS 9 and IFRS 7
• Effectiveness assessments
• Journal entries
• Disclosures
• Analysis

Online Web Service and Support
We also provide our clients with access to a secure website enabling them to view current and historical accounting and reporting information and obtain hardcopy documents related to their derivative activity.