FX Hedge Accounting
      Back to home
      1. CNS Treasury Knowledge Base
      2. Foreign Exchange Module
      3. FX Hedge Accounting

      Automated Hedge Accounting

      CNS Treasury’s Automated Hedge Accounting streamlines documentation, effectiveness testing, and journal entries, ensuring IFRS9 compliance. This reduces manual effort and improves accuracy in financial reporting.

      Automated Hedge Accounting

      CNS Treasury’s Automated Hedge Accounting offers a comprehensive solution for managing the complexities of hedge accounting while ensuring full compliance with IFRS9 standards. This feature automates the entire hedge accounting process, from hedge documentation and effectiveness testing to generating journal entries, drastically reducing the need for manual intervention and minimising errors. With CNS Treasury, treasury teams can efficiently manage their hedging activities while maintaining transparency and accuracy in financial reporting.

      Hedge Documentation and Journal Entries

      The platform automatically generates and stores all required hedge documentation, ensuring that each transaction is well-documented and easily accessible for audits or compliance reviews. Additionally, CNS Treasury automates the creation of journal entries linked to hedging transactions, ensuring that accounting records are accurate and aligned with IFRS9 requirements. This automation reduces administrative workload, improves efficiency, and ensures that accounting entries are consistent with hedge performance.

      Effectiveness Testing

      CNS Treasury also automates effectiveness testing, which is critical for determining whether a hedging relationship meets IFRS9 criteria. Both prospective and retrospective tests are conducted to ensure that hedges continue to function as expected. The platform automatically calculates these results and integrates them into the reporting system, allowing treasury teams to track hedge performance and make necessary adjustments to their strategies in real time.

      With CNS Treasury’s Automated Hedge Accounting, organisations can streamline their hedge management processes, enhance compliance, and improve overall accuracy and efficiency in their financial reporting, making it an essential tool for effective FX risk management.

       

      For assistance or to book a meeting, contact our support team at support@cnstreasury.com.

      Thanks,

      The CNS Team