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

      Effectiveness Testing

      CNS Treasury’s Effectiveness Testing automates the evaluation of hedging relationships for IFRS9 compliance. This feature delivers real-time insights into hedge performance, allowing teams to optimise their risk management strategies.

      Effectiveness Testing

      CNS Treasury’s Effectiveness Testing feature automates the evaluation of hedging relationships to ensure they meet the criteria set by IFRS9. This process is crucial for determining whether a hedge is performing as expected by effectively offsetting the changes in fair value or cash flows of the hedged item. CNS Treasury conducts both prospective and retrospective effectiveness tests, providing comprehensive insights into the performance of your hedges and enabling informed adjustments when needed.

      Automated Prospective and Retrospective Testing

      CNS Treasury automates the prospective testing required at the start of a hedging relationship to assess if the hedge is expected to be effective in the future. Additionally, retrospective testing is performed periodically to confirm that the hedge has been effective over time. These automated tests remove the need for manual calculations, offering treasury teams accurate, real-time results that help ensure their hedging strategies are in compliance with accounting standards.

      Enhanced Decision-Making and Compliance

      By automating effectiveness testing, CNS Treasury helps businesses maintain compliance with IFRS9 while providing critical data for decision-making. Treasury teams can easily track the effectiveness of their hedges, identify underperforming strategies, and make adjustments as needed to optimise their risk management approach. The platform also provides a clear audit trail, enhancing transparency and simplifying compliance reviews.

      In summary, CNS Treasury’s Effectiveness Testing feature ensures that hedging relationships are accurately evaluated, automated for efficiency, and compliant with regulatory standards, helping treasury teams manage their hedging strategies with confidence.

       

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

      Thanks,

      The CNS Team