Assistance with IAS 39 general and hedge accounting is an additional service available to FRM clients. 

Due to the close interaction with accounting and audit firms and the experiences with our existing clients, FRM advisors are well placed to assist with policy creation and meeting hedge documentation requirements. 

On your behalf, your FRM advisor will create hedge relationships, record documentation and conduct hedge effectiveness testing. Accounting entries are available in addition to the hedge accounting results which will be distributed to you.

General Accounting reports are available to assist you in processing the journal entries associated with all financial instrument transactions captured, not just those to which hedge accounting applies.

This is available to you even if your organisation does not perform any hedge accounting.

IAS 39 Hedge Accounting
Creating Hedge Relationships
Your FRM advisor will work with you to identify the exposures and hedges that may be included in a hedge relationship. They will link these together through the Quantum Treasury Management System. Each individual hedge relationship has a unique deal number enabling you to separately identify it.

Documentation
Your FRM advisor will work with you to finalise documentation and to include it within the documentation section of the hedge relationship. 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
The Quantum Treasury Management System will be used to perform the hedge effectiveness testing for you. There are no messy spreadsheets to maintain, just simply a report to run. This will be emailed to you on a regular basis, as agreed with you. The report shows 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 to enable you to keep track of and monitor your hedge relationships:

• Hedge Effectiveness Report: displays hedge effectiveness testing results as at the nominated date
• Hedge Relationship Deals: lists all the hedging instruments included in a hedge relationship, its associated details and which hedge relationship it is included in
• Hedge Relationship Deal Details: Displays all the deals included in the hedge relationship, as well as information around the testing method applied to the hedge relationship.
• Hedge Documentation: Displays in a neat format any documentation entered into the available free text section specifically for hedge documentation.

You may select which reports you would like to receive on a regular basis.

General Accounting Reports
At your request, Oakvale will run and distribute accounting reports. This process can be done as frequently as monthly. There are different options available for the type of reports you receive including:

• Accrual Report: Displays the accrual calculation and dollar amount for the period.
• Detailed General Ledger Trial Balance Report: Displays the individual journal entries for each transaction that has occurred during the period (including accruals, cash entries and hedge accounting).
• General Ledger Trial Balance Export Version: displays the individual journal entries for each transaction that has occurred during the period (including accruals, cash entries and hedge accounting) in a column format that can easily be uploaded directly into your existing accounting system.
• Summary General Ledger Trial Balance Report: displays a summarised view of the transactions that occurred during the period (including accruals, cash entries and  hedge accounting).