at Financial Technnology Year
Please contact them if you have any questions.
Features in Hedge Accounting Software
for Treasury Accounting
Specialized applications that support hedge designation, effectiveness testing, and accounting entries in compliance with standards such as IFRS 9 and ASC 815.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Accounting Entries & Journal Management
Automates hedge-related accounting entries per accounting standards and integrates with ERP systems.
- Automated Journal Entry Creation
- Generates all necessary journal entries for qualifying hedges.
- Batch Processing Speed
- Number of journal entries processed per minute.
- Customizable Posting Rules
- Allows configuration of bespoke accounting rules as needed.
- Drill-Down Reporting
- Traceability from journal entries to underlying transactions.
- Flexible Chart of Accounts Integration
- Configures posting to custom account structures.
- Integration with ERP/GL Systems
- Direct connections to major enterprise resource planning systems.
- Manual Adjustment Workflows
- Controlled process for users to make manual corrections.
- Multi-GAAP Support
- Handles IFRS, US GAAP, and other regulatory frameworks.
- Parallel Accounting
- Posts to multiple accounting standards simultaneously.
- Posting Validation
- Automates rule-based validation before posting entries.
Audit, Controls & Workflow Management
Provides embedded controls, segregation of duties, and workflow approvals for a robust audit environment.
- Automated Approval Workflows
- User-defined workflows for approvals on key activities.
- Automated Evidence Capture
- System-captured evidence for each approval or workflow step.
- Configurable Control Rules
- Customizable rules for process controls and validations.
- Embedded Audit Trail
- Immutable record of all system and user actions.
- Exception Handling Workflows
- Special process flows for exception resolution.
- Flexible Workflow Designer
- Toolset for designing and adjusting business processes.
- Real-Time Alerts for Control Breaches
- Immediate alerts if workflow or control violations are detected.
- Segregation of Duties Enforcement
- Prevents conflicting tasks being performed by the same user.
- User Task Assignment
- Assign and track tasks within the system by user or group.
- Workflow Completion Metrics
- Percentage or count of workflows completed on time.
Compliance & Regulatory Reporting
Provides robust, up-to-date regulatory reporting settings and automation for transparency and compliance.
- Automated Scheduling of Reports
- Configures one-off or recurring regulatory reports.
- Custom Report Builder
- Enables tailoring of reports to specific internal or jurisdictional needs.
- Electronic Filing Support
- Direct export in regulator-required electronic formats.
- Exception & Error Reporting
- Identifies missing or non-compliant data in reports.
- Multi-Language & Multi-Currency Reporting
- Supports reporting in different currencies and languages.
- Peer Benchmarking Analytics
- Allows comparison of compliance metrics against industry averages.
- Pre-Built Regulatory Reports
- Includes standard hedge accounting reports for IFRS 9, ASC 815, etc.
- Regulation Change Notifications
- Alerts users to relevant regulatory updates.
- Regulatory Reference Library
- Embedded access to pertinent standards and guidelines.
- Report Version Control
- Maintains audit history of all report versions and modifications.
Hedge Designation & Documentation
Supports the formal identification and documentation of hedging relationships to ensure regulatory compliance.
- Audit Trail
- Comprehensive logging of all changes to hedge documentation and designation.
- Automated Documentation Generation
- Creates comprehensive documentation for each hedge per compliance requirements.
- Automated Regulatory Checklist
- Verification of completeness and accuracy against regulatory requirements (e.g., IFRS 9, ASC 815).
- Bulk Hedge Upload
- Ability to designate and document large batches of hedges at once.
- Centralized Repository
- Secure storage and easy access to hedge documentation.
- Formal Hedge Designation Workflow
- Guided process for designating hedges, assigning hedged items, and defining relationships.
- Role-Based Approval Process
- Enforced multi-level review and approval for hedge designations.
- Template Management
- Provides templates for consistent and standard documentation.
- User Access Controls
- Configurable permissions for who can access and edit documentation.
- Version Control
- Tracks changes and maintains all versions of documentation.
Hedge Effectiveness Testing
Automates periodic effectiveness assessments and provides multiple methodologies for different hedge types.
- Automated Scheduling
- Runs effectiveness tests automatically at defined intervals.
- Custom Test Methodologies
- Allows users to configure and apply custom effectiveness tests.
- Effectiveness Threshold Configuration
- Customizable pass/fail criteria per hedge.
- Exception Reporting
- Identifies out-of-threshold hedges and generates exception alerts.
- Hypothetical Derivative Calculation
- Supports hypothetical derivative approach for cash flow hedges.
- Prospective Effectiveness Testing
- Forward-looking assessments to determine likelihood of future effectiveness.
- Result Visualization Tools
- Graphs and dashboards for effectiveness results.
- Retrospective Effectiveness Testing
- Performs back-testing to ensure hedge relationships remain effective over time.
- Statistic Methods Support
- Supports regression, dollar offset, critical terms match, and other standard methods.
- Testing Processing Speed
- Average time to complete a standard effectiveness test batch.
Scalability & Performance
Ensures the application supports growing transaction volumes, users, and organizational complexity.
- Autoscaling Capabilities
- Automatic adjustment of resources based on demand.
- Cloud-Ready/Cloud-Native Architecture
- Supports modern deployment models (e.g., SaaS, private cloud).
- Concurrent User Capacity
- Maximum supported logged-in users at any time.
- Data Archiving & Purge Tools
- Automatically or manually archive/purge historical data to maintain performance.
- Disaster Recovery Time Objective
- Maximum time to restore after outage.
- High Availability
- Failover and redundancy to ensure system uptime.
- Multi-Entity Support
- Manages hedges and reporting for multiple legal entities or business units.
- Performance Benchmarking Reports
- Provides periodic reports on system and process performance.
- Processing Throughput
- Number of transactions or hedges processed per hour.
- Resource Usage Monitoring
- Tracks CPU, memory, and storage usage.
Security & Privacy
Delivers robust data security, user access controls, and data privacy compliance.
- Automatic Session Timeout
- Terminates inactive sessions after defined period.
- Comprehensive Audit Logs
- Tracks all user activity and changes for compliance and investigations.
- Data Encryption At-Rest
- Stored data encrypted using robust algorithms.
- Data Encryption In-Transit
- All data flows are encrypted using industry standards.
- Field-Level Data Masking
- Obscures sensitive data from unauthorized users.
- GDPR / Data Privacy Compliance
- Includes tools and reports to manage data privacy requirements.
- Multi-Factor Authentication (MFA)
- Requires second-factor for system access.
- Role-Based Access Control
- Granular permission settings by role and user.
- Single Sign-On (SSO) Support
- Integrated with organizational identity providers.
- Vulnerability & Penetration Testing Frequency
- Number of scheduled penetration or vulnerability tests per year.
Support, Training, & Vendor Management
Accessible expertise, documentation, and vendor controls ensure successful implementation and ongoing success.
- 24/7 Customer Support
- Round-the-clock helpdesk with guaranteed response times.
- Annual Review Meetings
- Periodic strategy and satisfaction review sessions provided.
- Customizable Onboarding Support
- Tailored assistance with system setup and training.
- Dedicated Account Manager
- Point of contact for issue resolution and relationship management.
- Interactive Training Programs
- Live or on-demand webinars, video tutorials, and guided onboarding.
- Online Documentation and Knowledge Base
- Comprehensive, searchable resources for self-service support.
- Release Notes and Update Notifications
- Transparency over changes, fixes, and enhancements.
- Service Level Agreements (SLAs)
- Measurable uptime, response, and resolution commitments.
- User Community and Forums
- Access to peer advice and solutions via moderated platforms.
- Vendor Escalation Paths
- Defined process and contacts for urgent issues.
System Integration & Connectivity
Facilitates seamless data flow with trading, risk, general ledger, ERP and market systems.
- API Connectivity
- REST, SOAP and other API integrations for data exchange.
- Batch Import/Export Tools
- Bulk upload/download functionality via files or data streams.
- Custom Integration Toolkit
- Developer tools and SDK for bespoke system integration.
- Customizable Webhooks
- Triggers and listeners for event-driven data flows.
- Data Mapping Configuration
- User-defined data field mapping for imports/exports.
- Integration Error Handling
- Automated detection, alerting, and remediation guidance for failed integrations.
- Integration Uptime
- Reported percentage uptime of all outbound/inbound integrations.
- Pre-Built ERP Connectors
- Out-of-the-box interfaces for SAP, Oracle, etc.
- Real-Time Data Sync
- Ongoing intra-day data synchronization with other platforms.
- SFTP/FTPS Connectivity
- Support for secure file transfer protocols.
User Experience & Accessibility
Ensures that the software is easy to use, responsive and available for diverse users.
- Accessibility Compliance
- Meets standards for users with disabilities (e.g., WCAG).
- Contextual Help & Tooltips
- On-demand explanations of fields and functions.
- Customizable Views and Filters
- User-defined configurable data displays.
- Intuitive User Interface
- Modern, easy-to-navigate design.
- Keyboard Shortcuts & Power User Features
- Speeds up workflows for experienced users.
- Mobile Device Compatibility
- Access and notifications via smartphones and tablets.
- Multi-Language Support
- Localization in multiple languages.
- Performance Response Time
- Average time to load key screens/actions.
- Role-Based Dashboards
- Custom home screens by user group/function.
- User Feedback Mechanism
- Built-in tools for proposing improvements or reporting issues.
Valuation & Market Data Integration
Incorporates real-time or scheduled pricing, yield curves, FX rates, and market data feeds for accurate hedge valuation.
- Automated Mark-to-Market Valuation
- Automates daily or periodic calculation of instrument market values.
- Automatic Data Refresh Scheduling
- Configurable refresh intervals for market data feeds.
- Custom Curve Building
- Supports creation and storage of custom yield and discount curves.
- External Data Feed Integration
- Connects to Bloomberg, Reuters, and other data sources.
- Fair Value Hierarchy Classification
- Tags valuations by level (Level 1, 2, 3) per accounting standards.
- Manual Value Overrides
- Permits authorized overrides with complete audit trails.
- Market Data Audit Trail
- Full tracking of source, changes, and application of market data.
- Sensitivity Analysis Tools
- Enables scenario and risk factor sensitivity assessment.
- Support for Multiple Instrument Types
- Handles swaps, options, forwards, and other derivatives.
- Valuation Speed
- Average time to value a set of instruments.