 "Triple Point Launches Solution For Hedge Accounting")
Triple Point Technology, a player in cross-industry commodity and energy trading, risk management, scheduling and logistics software solutions, has announced the availability of its treasury management and regulatory compliance suite. Commodity XL for Hedge Accounting, the first product in the series, is a comprehensive hedge accounting software package and is fully integrated with Triple Point’s advanced commodity trading and risk management platform. It meets Sarbanes-Oxley, FAS 133, IAS 39, SAS 133, CICA 3865 and AASB 139 regulatory compliance requirements.
“Many organisations are at risk by using spreadsheets in an attempt to comply with hedge accounting regulations. This approach is at best inefficient and at worst exposes the company to failed audits and wild earnings swings,” said Michael Schwartz, Triple Point’s chief marketing officer. “Commodity XL for Hedge Accounting streamlines regulatory reporting, enhances hedging capability, reduces earnings volatility and alleviates compliance risk.”
Commodity XL for Hedge Accounting is a hedge accounting engine that supports a comprehensive risk management programme, enabling firms to balance between optimal economic benefit, risk management and stable financial statements. It primarily helps to account for hedging and risk management activities.
“Volatility of derivatives marked-to-market and shown on the income statement can create large swings in earnings from period to period, which is in direct conflict with investors’ desires for accurate P&L forecasts and smooth earnings growth, putting company and management reputation at risk. For this reason, some organisations have moved away from hedging or are using more ‘vanilla’ hedges in order to avoid having derivative price changes affect the P&L,” said Elie Zabal, Triple Point’s senior vice president of treasury management and regulatory compliance solutions. “This is a case of accounting driving management decisions that will most likely have a negative economic and risk management impact. Commodity XL for Hedge Accounting has the tools to manage the most complex hedges, enabling companies to optimise across risk, economic impact and earnings stability.”
Seamless integration between Commodity XL’s trading, risk management and hedge accounting functions eliminates data silos and redundant data input, providing immediate accessibility of information throughout the organisation. Saving trades in a single data repository ensures ‘one version of the truth’ across the organisation and eliminates errors emerging from re-keying hedge information into spreadsheets or point applications. The system’s seamless integration provides information to accounting systems for accurate and timely updates to financial statements.