British American Tobacco Plc Selects Reval for IFRS 7 and Hedge Accounting

London, 8 August 2007 – Reval, a global leader in financial risk management solutions and services, is delighted to announce that British American Tobacco Plc (BAT) has selected Reval’s HedgeRx to handle foreign exchange and interest rate risk management under IAS 39 and IFRS 7. IFRS 7 is a new risk disclosure requirement that companies reporting under International Financial Reporting Standards need to follow this year. The new rules will require companies to be able to model risk exposures globally involving complex analytics and market data requirements.

Reval’s solution will help BAT to improve their processes with respect to the valuation and documentation of their interest rate and foreign exchange instruments and allows them to assess the effectiveness of their hedging derivatives to mitigate earnings volatility. BAT will also be able to use the Reval solution to carry out the stress testing and scenario analysis required under IFRS 7.
The implementation of HedgeRx ® is expected to go live before the end of October to provide treasury managers with on-demand information on positions, exposures and independent mark to markets while also reducing processing times, improving governance controls and reducing prior reliance on spreadsheets.

"Key to our success in winning the BAT account was our ability to perform the scenario analysis and stress testing required under IFRS 7" noted Peter Reynolds from Reval "Frankly we have been surprised how little some corporates have done in preparation for D Day on January 1st, however, we are delighted to see BAT taking a lead in this area and are happy to help." 

About British American Tobacco (BAT)

British American Tobacco (BAT) is the second largest stock market listed tobacco group in the world, operating in over 180 markets and employing over 55,000 people. Net revenue for 2006 was just under £10 billion with profit from operations of £2,62 billion.

About Reval

Reval is a global SaaS provider for Treasury and Risk Management, helping enterprises better manage cash, liquidity and financial risk, and account for and report on complex financial instruments and hedging activities.

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