Learn FX Balance Sheet Hedging Basics Would you like to learn FX balance sheet hedging basics? FX Initiative’s Balance Sheet Hedging webinar walks you through common FX asset, liability and equity accounts on the balance sheet, the mark-to-market or fair value accounting process and the ways firms can minimize the income statement impact of fluctuating FX rates using derivatives. Upon completion of this program, Fortune 500 companies and small or medium-sized enterprises (SMEs) alike will learn best practices for optimizing and adjusting balance sheet hedges that can help mitigate the impact of fluctuating FX rates and stabilize periodic reported earnings. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF March 26, 2019By FX Initiative Webinar Accounting, Balance, BestPractices, CPE, Currency, Derivative, Earnings, Education, EPS, Forex, FXCPE, FXInitiative, Gain, Hedge, Learning, Loss, Management, Offset, Payable, Receivable, Recognized, Revalue, Risk, Training, Volatility 0 0 Comment
Learn the Language of FX Risk Management Ready to learn the language of FX risk management? FX Initiative’s FX Terms Glossary will teach you the key terms and definitions related to FX risk management. Newcomers and seasoned professionals alike can leverage this online dictionary to clarify the conversation, and develop a working vocabulary of important and frequently encountered concepts concerning foreign currency. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training> Download the PDF March 5, 2019By FX Initiative Examples, FX Terms Glossary, General accounting, acronyms, bestpractices, cpe, currency, definitions, education, finance, foreignexchange, forex, fxcpe, fxinitiative, glossary, hedging, jargon, language, learning, management, risk, terms, training, treasury, vocabulary 0 0 Comment
Identify The Top Two FX Hedge Objectives Ready to optimize your firm’s FX hedge objectives? FX Initiative’s Hedging FX Transactions course covers best practices employed by Fortune 500 companies and small and medium-sized enterprises (SMEs) for achieving the top two FX hedge objectives, illustrated in detail with real world economic and accounting examples. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF February 26, 2019By FX Initiative FX Transaction Simulator, Hedging FX Transactions accounting, bestpractices, cashflow, cpe, credit, currency, debit, earnings, economics, education, EPS, expense, forward, fxcpe, fxinitiative, gain, goals, hedge, learning, loss, management, objectives, option, payable, receivable, revenue, risk, targets, training, transactions 0 0 Comment
How to Test FX Transactions & Hedge Strategies Ready to learn how to test FX transactions & hedge strategies? FX Initiative’s Foreign Exchange Transaction Simulator is a risk modeling tool that illustrates common FX exposures such as revenues, expenses, receivables and payables. The result is a detailed and interactive FX risk analysis that charts the economic payoff of a hedge strategy along with accounting journal entries and references to U.S. generally accepted accounting principles (GAAP). This tool serves to simplify the risk analysis process for you so you can focus on the practical bottom line impact to your global business. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF February 19, 2019By FX Initiative FX Transaction Simulator, General accounting, bestpractices, cpe, credit, currency, debit, economics, education, expense, forex, forward, fxcpe, fxinitiative, gain, hedge, learning, loss, management, option, payable, practice, professional, receivable, revenue, risk, simulate, stresstest, training, transactions, VaR 0 0 Comment
Discover the Different Types of FX Derivatives Do you want to discover the different types of FX derivatives in detail? FX Initiative’s FX Spot & Derivatives course will help you distinguish the different type of FX derivatives firms employ to effectively hedge FX risk. This program provides a comparative analysis of FX derivatives with simulated examples to demonstrate the instruments your firm can use. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF February 12, 2019By FX Initiative FX Spot & Derivatives, General accounting, bestpractices, collars, cpe, currency, derivatives, economics, education, forex, forwards, fxcpe, fxinitiative, hedging, learning, management, options, payoff, professional, profile, risk, training 0 0 Comment
Identify Internal Controls for FX Risk Management Interested in identifying internal controls for FX risk management? FX Initiative’s FX Risk Policy Drafter tool will help your firm establish internal controls by appointing personnel to the roles of trading, accounting, and confirmation, and specifying the individual responsibilities that fall under each segregated duty. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training > Download the PDF February 5, 2019By FX Initiative FX Risk Policy Drafter, General accounting, bestpractices, confirmation, corporation, cpe, currency, duties, education, forex, fxinitiative, internalcontrols, learning, management, multinational, professional, responsibilities, risk, roles, trading, training 0 0 Comment
FX Initiative: Your FX Risk Management Formula [𝑓𝑥+𝐶𝑃𝐸=𝑓𝑥𝐶𝑃𝐸.𝑐𝑜𝑚] Are your finance, accounting and treasury teams ready to manage foreign exchange (FX) risk in 2019? Whether you are new to foreign exchange or a seasoned professional, follow FX Initiative for your FX risk management formula to optimize an actionable plan for managing currency risk. FX Initiative is a leading provider of FX risk management training to finance, accounting and treasury professionals through educational videos, online tools, and webinar topics that are eligible for continuing professional education (CPE) credit and offered on-demand anytime and anywhere at FXCPE.com. Our training approach starts by identifying knowledge gaps using our Pre-Test Evaluation, and then closing those knowledge gaps with our on-demand educational videos, real-world examples, and live and recorded webinar events to create a comprehensive curriculum on currency risk management. The organizations FX Initiative works with recognize the value of investing in training that enables employees to excel at their job responsibilities, and apply their professional development and knowledge for the benefit of the firm. We teach best practices for reducing FX gains and losses, preserving cash flows, and optimizing FX risk management strategies for revenues, expenses, receivables, payables, assets, liabilities, and equity. The benefit to the bottom line and increased understanding and communication of FX challenges and solutions is brought about through the following four essential stages of learning: First, we ask challenging and critical questions global firms face, such as: How to manage currency risk? How to draft a FX risk policy? Where to look for FX risk exposures? What currency risks to hedge and how? Which strategies meet FX hedge objectives? What is the economic and accounting impact? Second, we answer those questions in our CPE video courses, which include: FX Market Overview FX Risk Exposures FX Risk Management FX Spot & Derivatives Hedging FX Transactions Hedging Foreign Subsidiaries Third, we reinforce concepts with CPE exams and interactive examples using our: Currency Code Locator FX Risk Policy Drafter FX Derivative Speculator FX Transaction Simulator FX Subsidiary Consolidator Fourth, we present hands-on practical CPE webinars that cover the following topics: FX Risk Management FX Risk Policy FX Forward Contracts Balance Sheet Hedging Cash Flow Hedging Net Investment Hedging Our approach ensures that topics are not only addressed in detail, but reinforced and practiced, enhancing confidence in your ability to implement and expand on your newly improved skills. All training content is available 24/7 365 to help you anytime and anywhere with FX risk policies, FX accounting, FX hedging strategies, and everything FX risk management related. FX Initiative serves as a trusted partner and FX risk management resource to finance, accounting and treasury professionals with the goal of increasing collaboration and profitability. Are you ready to manage FX risk? Become a FX Initiative subscriber today to access our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Managing FX risk is a high priority for many firms in 2019, and it is now easier than ever to learn the fundamentals of currency risk management. You can reduce FX risk and reap rewards abroad by taking the FX Initiative for your international business today! Click here to subscribe > Cheers to your continued success in the new year, The FX Initiative Team support@fxinitiative.com January 7, 2019By FX Initiative General Accounting, ContinuingProfessionalEducation, Finance, Foreign Exchange, Forex, FX Initiative, FXCPE, Learning, Management, Risk, Training, Treasury 0 0 Comment
Attend the Cash Flow Hedging webinar! You're invited to the Cash Flow Hedging webinar! Thursday, October 18th | 2PM Eastern | 1 CPE Credit Program Overview Join us for a live webinar and learn how to hedge and account for forecasted FX revenues & expenses. This 1-hour session covers 4 key learning objectives: Discover the concept of a foreign exchange (FX) cash flow hedge. Explore how FX revenues and expenses impact the financial statements. Recognize the cash flow and accounting implications of cash flow hedges. Identify corporate best practices for hedging forecasted FX transactions. Who Should Attend New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business. Join Us October 9, 2018By FX Initiative Hedging FX Transactions, Webinar Accounting, Balance Sheet, Cash Flow Hedge, CPE, Derivative, Economics, Expenses, Forecast, Foreign Exchange, Forward Contract, Gain, Hedge, Income Statement, Loss, Revenue, Training, Webinar 0 0 Comment
Explore the Zero Sum Game of FX Gains & Losses Hedging foreign exchange risk can be viewed as a zero sum game, meaning that when one side of the hedge gains the other side loses. The degree by which those gains and losses do or do not perfectly offset depends on the derivative instrument, hedge coverage level, and strategy used. The FX hedge game isn't about winning or losing, it's about making the outcome more certain. Balance sheet hedging is the most common practice among multinational corporations, and the goal is often to reduce foreign exchange gains and losses on the income statement to zero. The most effective way to largely achieve this goal is to hedge using a forward contract, which has a symmetrical payoff profile relative to the spot exchange rate, and to hedge 100% of the underlying exposure. However, even under this perfect scenario, there will still be residual FX gains and losses reported in earnings. When companies hedge near 100% of their balance sheet exposures using forward contracts, controllers and treasurers often wonder why they are never able to achieve that zero sum outcome entirely. This is due to the forward point component of the forward rate on the derivative contract, and the fact that forward contracts are revalued based on forward rates compared to the underlying spot exposure, which is revalued based on spot exchange rates. As a result, there will almost always be a difference in the "mark-to-market" accounting of a forward contract hedge and an underlying spot exposure. The only time this would not be the case is if interest rates were exactly equal for the countries or regions associated with the two currencies in the pair, which is highly uncommon. This is a typical area of frustration global corporations struggle with, and it highlights that understanding the accounting for underlying exposures and derivatives can clarify why there is a residual impact in earnings. Furthermore, it helps set realistic expectations as to what can be achieved when trying to play the zero sum game of FX hedging. FX Initiative's Currency Risk Management Training covers balance sheet hedging in detail using Apple as an example to show how multinational corporations can hedge common exposures such as receivables and payables with forward contracts to mitigate foreign exchange gains and losses on the income statement. Our focus is on both the cash flow and financial reporting aspects of the hedge strategy, and we reinforce our teaching with visual displays of the economic and accounting ramifications. If you are interested in learning how to hedge FX balance sheet exposures, forecasted transactions, and net investments in foreign subsidiaries, start your training today and explore our real world examples of all three scenarios. Furthermore, you can use our FX Transaction Simulator and Foreign Subsidiary Consolidator to customize your own risk model using company specific variables that reflect your actual exposures. Our video based curriculum puts academic theory into practice, and can help you and your team deliver more effective bottom line results in a time efficient manner. Take the FX Initiative for your organization by subscribing here. Click here to subscribe > Cheers, The FX Initiative Team support@fxinitiative.com August 27, 2018By FX Initiative FX Transaction Simulator, Hedging FX Transactions Accounting, Apple, Balance Sheet, Best Practice, Continuing Professional Education, Controller, CPE, Credit, CUrrency, Derivatives, Earnings, Economics, Forward Contract, FX, Gains, Hedge, Income Statement, Losses, Management, Risk, Traning, Treasurer, Zero Sum Game, Foreign Exchange 0 0 Comment
You're invited to the FX Forward Contracts webinar! You're invited to the FX Forward Contracts webinar! Thursday, June 21st | 2PM Eastern | 1 CPE Credit Program Overview Join us for a live webinar and learn what forward contracts are and why they are the most used derivative. This 1-hour session covers 4 key learning objectives: Discover the concept of over-the-counter (OTC) foreign currency derivatives. Identify what forward contracts are and how forward points are calculated. Recognize the payoff profile, economics and accounting of forward contracts. Explore why forward contracts are the most used FX derivative by corporations. Who Should Attend New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business. Join Us June 14, 2018By FX Initiative FX Spot & Derivatives, Webinar Accounting, Continuing-Professional-Education, Corporate, CPE, Currency, Derivatives, Foreign-Exchange, Forex, Forward-Contacts, FX-Risk-Management, Hedging, Training, Webinar 0 0 Comment