Hedge Accounting Testing and Compliance (AASB 139 / IFRS 9)
As Quantum / Acorn is used for all transaction captures, accounting entries are available to assist you in processing the journal entries associated with these transactions. This is available even if your organisation does not perform hedge accounting.
Quantum / Acorn’s AASB 139 / IFRS 9 functionality, associated reporting framework and accounting reports are an optional extra of the Quantum / Acorn Service.
The AASB 139 / IFRS 9 hedge accounting functionality enables you to create hedge relationships, record documentation and conduct hedge effectiveness testing. You are also provided with the accounting entries that are required to be posted.
Our extensive experience with existing clients and our close interaction with accounting and audit firms means that the Oakvale Treasury team is well placed to assist your organisation to make the most effective use of Quantum / Acorn’s accounting capability.
Your general accounting reports will include accounting entries for your entire portfolio and your hedge accounting (if applicable). Samples of reports available are shown below.
AASB 139 / IFRS 9 Hedge Accounting Functionality
Creating Hedge Relationships
You will be able to link together deals that you have already entered into Acorn™. Each individual hedge relationship has a unique deal number enabling you to separately identify it.
A text field is available to record the hedge documentation specific to the hedge relationship. This is attached into the hedge relationship so that you only have to look in one place to see all the details of the hedge relationship.
Hedge Effectiveness Testing
Quantum / Acorn performs the hedge effectiveness testing for you. There are no messy spreadsheets to maintain, just simply a report to run. This shows in preview mode the prospective and retrospective testing results for each unique hedge relationship, as well as the amounts deferred to equity and quantification of any ineffectiveness.
Hedge Accounting Reports
A variety of reports are available through Quantum / Acorn to enable you to keep track of and monitor your hedge relationships. These include:
- Hedge Effectiveness Report displaying hedge effectiveness testing results as at the nominated date.
- Hedge Relationship Deals listing all the hedging instruments included in a hedge relationship, its associated details and which hedge relationship it is included in.
- Hedge Relationship Deal Details displaying all the deals included in the hedge relationship, as well as information around the testing method applied to the hedge relationship.
- Hedge Documentation displaying in a neat format, any documentation entered into the available free text section specifically for hedge documentation.
Contact Oakvale Treasury today to learn how Oakvale Treasury can assist your organisation with all aspects of its Hedge accounting testing and compliance (AASB 139 / IFRS 9).