Hedge Accounting Partnerships

Rochford partners with preferred hedge accounting advisors to implement hedging strategies with confidence, improve P&L volatility & protect your balance sheet.

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Derivatives used to hedge underlying exposures to market risk (such as interest rate, foreign exchange, commodity price) are valued at FVTPL. The volatility of derivatives can cause adverse movements in fair values and cash-flows which can severely impact reported earnings. In extreme circumstances, they can cause entities to breach loan covenants and financial ratios can have disastrous consequences for the entity.

The solution is Hedge Accounting

Hedge Accounting helps to reduce profit and loss volatility and protects balance sheet valuations. It enables key stakeholders to better understand the true performance of an entity, by minimising the accounting impact of derivatives on the financial statements.

In an environment when CFOs are asked to do more with less, outsourcing Hedge Accounting to a trusted specialist can provide peace of mind that optimal accounting results will be obtained, particularly at audit time where hedge accounting is often scrutinised and financial instrument disclosures requirements are exhaustive.

At Rochford, we provide invaluable Hedging solutions and align your commercial hedging strategy with the appropriate accounting standards to ensure your company’s financial performance is not adversely affected.

Our in-depth experience of financial risk enables us to provide:

  • Optimal Hedge accounting to reduce profit and loss volatility & protect balance sheet valuation
  • IFRS 9 interpretation & guidance
  • Hedge effectiveness testing/insights, and support with audit queries
  • Credit risk adjustments (CVA & DVA) to mark-to-market (MTM) valuations
  • Fin. stat disclosures & commentary for audit/risk committee reports
  • Accurate analysis & reporting for monthly/year-end deliverables
  • Unbiased recommendations on Hedge system upgrades

As a specialist skill set, hedge accounting is often additional workload taken on by CFOs, who may not have the relevant or appropriate experience in this area. Therefore, outsourcing hedge accounting can reduce fixed costs and minimise key-man risk. We can also work to improve your operational efficiencies, compliance & governance, and educate your team to improve internal capabilities going forward.

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Hedge Accounting Insights

Hedge Accounting

Satisfying hedge accounting compliance is 9/10th of the law for TOFA

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Hedge Accounting considerations when refinancing debt facilities

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Hedge Accounting for Forward FX Contracts

Accounting for FX Forward Contracts and the benefits of hedge accounting

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Hedge Accounting under IFRS 9: Top 5 CFO considerations

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CFOs – Are your Interest Rate Swaps now In-The-Money?

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Stay Ahead of the Curve this EoFY

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Testimonials

"I was really impressed with the work that Kevin and the team at Rochford did for SG Fleet in relation to our ongoing interest rate risk management. Rochford’s approach and independence ensured we had the best possible visibility of the economics of our re-financing and ensured that our hedge accounting strategy was aligned to our commercial risk management objectives."

– Kevin Wundram, CFO, SG Fleet

"We engaged Rochford to out-source the Group’s hedge accounting implementation. We have found them to be very good value and professional. They have gone the extra mile to guide the Group and the external Auditors throughout the implementation – they have been continually very willing and active in providing advice. As the work expanded, Rochford has been able to seamlessly accommodate."

– Adam Meehan, Group Financial Controller, Petredec Pte Ltd

“We are delighted with the work Kevin and the team at Rochford have done for The Institute in relation to our ongoing hedge accounting requirements. Rochford’s proactive approach and independence ensured we had accurate mark-to-market valuations and that our hedge accounting strategy was aligned to the commercial risk management objectives, resulting in minimised hedge ineffectiveness to profit or loss.”

– Ganen Nadaragh, Group Financial Controller, George Institute for Global Health