FAS 133 

FAS 133

Financial Accounting Standards Board Statement 133
“Accounting for Derivative Instruments and Hedging Activities.”
United States

Reval provides a comprehensive solution to clients seeking compliance with this regulatory standard dealing with “Accounting for Derivative Instruments and Hedging Activities". Our solution to the FAS 133 hedge accounting standard allows clients to:

• Define the hedging instrument for regulatory purposes.
  
• Link the hedging instrument with the corresponding hedged item.
  
• Designate the hedge relationship.
  
• Designate the type of risk(s) that is being hedged.
  
• Prepare the documentation required by auditors to record the hedging relationship, objective, and the strategy for undertaking the hedge.
  
• Generate reports to perform at inception and on-going assessment of hedge effectiveness using various methods including advanced regression analysis, stress testing, and dollar offset testing.
  
• Generate reports and ledger entries for the measurement of effectiveness and ineffectiveness of the hedge relationship over its life.
  
• Account for the gain or loss of a hedging relationship based on a fair value hedge, cash flow hedge, or hedge of a net investment in a foreign operation.
  
• Prepare proper accounting outputs, including Other Comprehensive Income (OCI) or basis adjustment amounts and their adjustments related to foreign currency translation, foreign currency forward point amortization, option premium amortization, or the estimated releases of OCI/Basis Adjustments expected to be reclassified within the next 12 months on an effective yield or straight line basis.

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