How to Discontinue an FX Contract

A company may choose to discontinue an FX contract for hedge accounting purposes if the underlying exposure has changed or no longer exists, requiring a partial or full discontinuation to maintain accurate financial reporting. This can occur if forecasted transactions are delayed, cancelled, or settled at a different amount than originally hedged, ensuring the hedge remains aligned with actual business risks.

 

Automated Discontinuation

• FX contracts automatically discontinue once they have matured, requiring no manual action.

Manual Discontinuation

1. Navigate to Hedge Accounting Data

   • Go to Hedge Accounting → HA View Data → View FX.

   • Locate the FX contract in the grid.

   • Click the vertical ellipses (⋮) under the Action column and select Discontinue.

   

2. Enter Discontinuation Details - use horizontal scroll within grid to see all fields below

   • Select your Discontinue Date

   • Enter the Discontinue Amount

   • Select if it is a Basis Adjustement or not
   • Enter in Amortisation Days
   • Enter in Days Lag
   • (Optional) Enter in a Discontinue Note
   
   

3. Save the Discontinuation

   • Click the tick on the left side of the row to confirm and save the discontinuation.

   • Click the X if you want to Cancel the entry