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These exposures are usually very long dated and the hedges may need to be re-aligned/adapted over their lives due to changes in business plans, cash flow projections, re-financings, etc.
Accounting for derivatives under IFRS (IAS39 and IFRS9), US GAAP and other local standards (i.e. new UK GAAP (FRS101 and FRS102, effective since 1 January 2015) can often be complex to understand and implement. Particularly for those entities for which hedge accounting is usually a ‘must’ in order to avoid earnings volatility, that could adversely impact distributable reserves and covenants.
We provide a specialist service to assist your accounting teams, including pre-transaction support, valuations incorporating counterparty credit risk (CVA/DVA), support and expertise with hedge accounting, and the preparation of disclosure notes for your SPV’s financial statements.
Have you got a question about how you hedge your financial risks, or structure and arrange your debt?
Find out how we can help you by contacting us today.