"With the increasing complexity of the natural gas procurement process and the uncertainties associated with predicting demand, we needed a software solution that would more effectively support our operations. The software's complete documentation of gas trading activities and audits of procurement process were critical factors in its selection."

Seminole Electric Cooperative

Hedge Accounting and Reporting Solution PDF Print E-mail

Robust Tools for Global Hedge Analysis, Reporting and Compliance

Hedge Accounting and ReportingToday’s increasing regulatory requirements, coupled with a changed economic climate are forcing organizations to do more with fewer resources.  The recent global financial crisis and volatility in capital markets have made it extremely challenging to mitigate exposure and manage market values in commodity markets.

Hedge 8.1

Allegro’s Hedge 8.1 is a fully integrated and automated hedge accounting solution. It enables greater efficiencies by reducing manual intervention, freeing your team to take a more proactive approach to hedge management and accounting.  Hedge 8.1 provides a controlled environment at every level throughout the organization, from hedge capture to disclosure reporting, which reduces the risk of error, accounting restatement, and employee effort on time-consuming tasks.

Allegro’s Hedge 8.1 component supports compliance with the most recent global regulatory accounting standards, and provides advanced tools for analysis and reporting to alleviate the complexity and risk associated with hedge accounting and fair value disclosure requirements.  With the ability to perform prospective and retrospective analysis of hedges, Allegro gives customers the control, accuracy, timeliness, and security to certify financial reports with confidence.

The following key functionality allows Allegro Hedge 8.1 to handle related accounting and reporting for even the most complex scenarios, ensuring proper valuation, settlement, and compliance.

  • Financial Instrument Management
  • Currency Management
  • Interest Rate Management
  • Fair Value Management
  • Fair Value Option Management
  • Disclosure Management
Key Feature Key Benefit

Global Financial Instrument Management for FAS 133, IAS 39, CICA 39, AASB 139, and FRS 39

 

Properly identify and apply appropriate measurement standards, and generate the required compliance documentation for financial and derivative instruments, ensuring the ability to qualify for hedge accounting treatment

Currency Management for FAS 133, IAS 39, IAS 21

Enables transparency and appropriate accounting treatment for currency financial and derivative instruments to assist companies in hedging foreign currency exposure

Interest Rate Management for FAS 133, IAS 39, IAS 21

Provides transparency and appropriate accounting treatment for interest rate financial and derivative instruments to assist companies in hedging interest rate exposure

Fair Value Management for FAS 157

Analyze Derivative Instruments to assess the Fair Value risk levels, apply the appropriate Fair Value Measurement Standards and then generate the required compliancy documentation

Fair Value Option Management for FAS 159

Analyze the effect of a company’s decision to apply the fair value option to their assets, liabilities and earnings and then generate the required compliancy documentation

Global Disclosure Management for FAS 161, IAS 7, AAASB 7, FRS 107

Analyze the impact that financial instruments have on an entity’s financial position, and then generate the required compliancy disclosure on the results of operations and cash flows, along with the nature and extent of risks  associated with those financial instruments