Jiro Okochi CEO & Co-Founder, Reval.com, Inc
Jiro Okochi CEO & Co-Founder, Reval.com, Inc

Treasury Best Practice– the role of FX automation - Why automation for IAS 139 is a must have - not a nice to have.

Jiro Okochi identifies the key areas within hedge accounting that would benefit from automation.

First Published: e-Forex Magazine 22 / Standards / January, 2006

Idealist in treasury love to talk about achieving STP (“straight-through-processing”), or having a one-stop single solution treasury management solutions (“TMS”) that does everything. While some treasuries have gotten pretty close to reaching this panacea for cash management or for Fx execution, the advent of hedge accounting rules across the globe have thrown monkey wrenches into the many plans for improved automation in treasury. In fact, the new requirements are forcing more manual processes for treasury which is not a good position in the post-Sarbanes Oxley world for having the proper financial controls.For US GAAP followers, the regulations for derivative accounting under FAS 133 is several years old, but ACG-13 (Canadian GAAP), CTEN (Mexico) and IAS 39 (basically the rest of the world) are very new and have put significant amount of pressure and paperwork on treasurers and accountants. There are the unfortunate multi-nationals who have to report under more than one standard...continued

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