Hedge accounting implementation leads to an automated solution

Company goals

• Quickly implement hedge accounting programs for the firm’s FX and commodities exposures.
• Integrate systems utilized for mark-to-market and cash flow trades with an automated technology solution to bring in transactions and value them in accordance with accounting standards.
• Align procurement, treasury, and accounting teams to comprehensively hedge existing exposures.
• Retain accounting expertise and maintain a continued advisory partnership to handle the complexity of the firm’s program and exposures.

Key activities

• Operationalizing a hedge accounting program: The organization worked with Chatham to kickstart, streamline, and maintain a program with exposures across asset classes quickly and efficiently.
• Align with various stakeholders: Dozens of stakeholders across the procurement, treasury, and accounting teams partnered with Chatham’s hedging, hedge accounting, and technology subject matter experts to drive cohesive, company-wide results.
• Support changing reporting and hedging needs: The Chatham hedge accounting team adapted to the shifting needs of a global company operating in a volatile economic environment while providing both GAAP and IFRS support.
• Automate trades through ChathamDirect: The treasury team integrated the ChathamDirect platform with its systems for mark-to-market trades, creating a seamless user interface for the firm.

Key Results

• Reduced P&L impact and protected earnings through implementing hedge accounting programs across a variety of asset classes.
• Improved cost efficiency while reducing key-person risk through automating manual treasury and accounting processes.
• Increased controls and collaborated with auditors to reduce risk of error from period-end processes.