FX Net Investment Hedging Nuances Would you like to know the nuances of FX net investment hedging? FX Initiative’s FX Net Investment Hedging webinar explores how multinational corporations can hedge assets and equity in foreign subsidiaries, and demonstrates the importance of formally designating derivatives as net investment hedges for accounting purposes to benefit from reporting FX gains and losses in equity on the balance sheet. 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 April 23, 2019By FX Initiative Hedging Foreign Subsidiaries, Webinar accounting, ASC815, asset, consolidation, CTA, currency, defer, derivative, education, equity, financial, foreign, forex, fxcpe, fxinitiative, gains, hedge, learning, losses, management, net, operations, reporting, risk, subsidiaries, traning, translation 0 0 Comment
Learn How to Test FX Transaction Hedges Do you test the economic and accounting implications of your FX hedge strategies prior to trading? Testing by definition involves checking the performance of something before putting an idea into practice. This is a prudent and practical step to take when managing foreign exchange risk across the enterprise. When it comes to hedging specific foreign exchange transactions, companies can benefit greatly from testing the most common derivative strategies such as forwards, options, and collars, stress testing the economic scenarios, and comparing the accounting treatment available. By employing this approach, companies can more reliability predict both the cash flow and financial reporting implications of a hedged FX transaction. FX Initiative’s FX Transaction Simulator allows companies to input their ”assumptions" such as exchange rates, interest rates, and market volatility, as well as company specific variables such at the transaction dates, the amount of the transaction, and the desired hedging strategy. Correspondingly, these assumptions are reflected in our proprietary risk analysis model which visually charts the payoff profile of the selected hedge strategy, ranks the economic performance of the alternative spot, forward, vanilla option, and collar strategies side by side, and displays the accounting debits and credits for default and elective accounting treatment. The following 2 minute overview video shows the 3 steps involved in using the FX Transaction Simulator: Want full access? Click to subscribe today! If you are interested in testing your FX transaction hedges prior to trading using the FX Transaction Simulator, sign up for our Foreign Exchange Risk Management Training today and access our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Managing FX risk has become a higher priority for many firms for 2017 and it is now easier than ever to learn the fundamentals of currency risk management. Make this the year to reduce FX risk and reap rewards abroad by taking the FX Initiative for your international business today! Click here to start your FX Risk Management Training today! Cheers to your global organization's continued success in the new year, The FX Initiative Team support@fxinitiative.com March 20, 2017By FX Initiative FX Transaction Simulator, Hedging FX Transactions Asset, Continuing Professional Education, Currency, Equity, Expense, Foreign Exchange, Hedge, Liablity, Management, Payable, Receivable, Revenue, Risk, CPE, FX 0 0 Comment