To Hedge or Not to Hedge: Commodity Contracts and Supply Chains
Commodity XL for Hedge Accounting - Triple Point … POINT TECHNOLOGY, INC. ... Commodity XL for...
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TRIPLE POINT TECHNOLOGY, INC. | [email protected] | TPT.COM SAFEGUARD AGAINST COMMODITY VOLATILITY Commodity XL for Hedge Accounting: Commodities™ is a robust Software Assisted Compliance (SAC) solution that automates the entire hedge accounting process for commodities. It supports a comprehensive risk management program that enables firms to balance optimal economic benefit, risk management and stable financial statements. It provides a single platform to effortlessly ensure compliance with ASC 815 (FAS 133), IAS 39 (IFRS 9), CICA 3865, AASB 139 and SAS 133. Key Business Benefits ■ Streamlines Operations and Reduces Costs Seamless integration eliminates data silos and redundant data input, providing immediate accessibility of information throughout the organization ■ Enhances Hedge Decision-Making Commodity XL for Hedge Accounting: Commodities enables organizations to make better hedge decisions and to manage the most complex hedges ■ Reduces Earnings Volatility Robust system to manage hedging program and minimize the impact of derivatives on financial statements ■ Ensures Compliance Single data repository ensures “one version of the truth” across the organization in real-time; fully SOX, ASC 815 (FAS 133) and IAS 39 (IFRS 9) compliant Key Features ■ Forecasts earnings at risk including AOCI (Accumulated Other Comprehensive Income) by shocking curves by percent or standard deviation ■ Allows users to pre-define a variety of hedge objectives and choose from these definitions as trades and exposures are entered ■ Classifies hedges as cash flow or fair value (including efficient inventory management) ■ Provides fast, easy deal capture with trade information flowing immediately to everyone in the value chain, ensuring all participants work with current information TREASURY MANAGEMENT AND REGULATORY COMPLIANCE SOLUTION Commodity XL for Hedge Accounting: Commodities Module TRIPLE POINT FACT SHEET Commodity XL for Hedge Accounting: Commodities “Regulatory risk is seen as the most significant threat to business and a greater source of concern than country risk, market and credit risk, terrorism and natural disasters…Nine out of ten executives expect the business costs of regulation to rise over the next three years.” —excerpt from report in Energy Risk Magazine, citing a global survey by Economist Intelligence Unit
Transcript of Commodity XL for Hedge Accounting - Triple Point … POINT TECHNOLOGY, INC. ... Commodity XL for...
TRIPLE POINT TECHNOLOGY, INC. | [email protected] | TPT.COM
SAFEGUARD AGAINST COMMODITY VOLATILITY
Commodity XL for Hedge Accounting: Commodities™ is a robust Software Assisted Compliance (SAC) solution that automates the entire hedge accounting process for commodities. It supports a comprehensive risk management program that enables fi rms to balance optimal economic benefi t, risk management and stable fi nancial statements. It provides a single platform to effortlessly ensure compliance with ASC 815 (FAS 133), IAS 39 (IFRS 9), CICA 3865, AASB 139 and SAS 133.
Key Business Benefi ts
■ Streamlines Operations and Reduces CostsSeamless integration eliminates data silos and redundant data input, providing immediate accessibility of information throughout the organization
■ Enhances Hedge Decision-MakingCommodity XL for Hedge Accounting: Commodities enables organizations to make better hedge decisions and to manage the most complex hedges
■ Reduces Earnings VolatilityRobust system to manage hedging program and minimize the impact of derivatives on fi nancial statements
■ Ensures ComplianceSingle data repository ensures “one version of the truth” across the organization in real-time; fully SOX, ASC 815 (FAS 133) and IAS 39 (IFRS 9) compliant
Key Features
■ Forecasts earnings at risk including AOCI (Accumulated Other Comprehensive Income) by shocking curves by percent or standard deviation
■ Allows users to pre-defi ne a variety of hedge objectives and choose from these defi nitions as trades and exposures are entered
■ Classifi es hedges as cash fl ow or fair value (including effi cient inventory management)
■ Provides fast, easy deal capture with trade information fl owing immediately to everyone in the value chain, ensuring all participants work with current information
TREASURY MANAGEMENT AND REGULATORY COMPLIANCE SOLUTION
Commodity XL for Hedge Accounting:Commodities Module
TRIPLE POINT FACT SHEET
Commodity XL for Hedge Accounting: Commodities
“Regulatory risk is seen as the most signifi cant threat to business and a greater source of
concern than country risk, market and credit risk, terrorism and natural disasters…Nine out
of ten executives expect the business costs of regulation to rise over the next three years.”
—excerpt from report in Energy Risk Magazine, citing a global survey by Economist Intelligence Unit
TRIPLE POINT TECHNOLOGY, INC. | [email protected] | TPT.COM
■ Maintains all documentation within the system such as hedge objective, type of hedge, description of hedge, type of risk, length of hedge, and prospective and retrospective assessment to be used
■ Enables “what-if” scenarios prior to deal execution, allowing traders to test economic benefi t and prospective hedge effectiveness
■ Tests hedge effectiveness on prospective and retrospective basis
■ Generates reports automatically for each cycle close and archives for later viewing
■ Produces journal entries for each accounting cycle
■ Reclassifi es OCI to earnings automatically in parallel with forecast
■ Manages all commodities on a common platform – natural gas, power, oil, coal, agriculture, metals and emissions
All modules within the Commodity XL for Hedge Accounting™ solution are available as standalone solutions or pre-integrated with the entire range of Triple Point’s trading and risk management software.
Available modules for Commodity XL for Hedge Accounting:
■ Commodities
■ Foreign Exchange
■ Interest Rate
About Triple Point Technology Inc.
Triple Point is the leading global provider of software to manage commodities and enterprise risk. The company provides innovative solutions to competitively address the complex commodities value chain: buying, selling, trading, and procurement; enterprise risk management; scheduling and logistics; storage; processing; and settlement and accounting. Triple Point’s Commodity Management platform enables over 260 customers in 35+ countries to profi tably manage exposure to energy and raw materials across industries including energy; metals; agriculture; transportation; shipping; consumer products (CP); discrete manufacturers; and big box retailers. Triple Point was named a ‘Leader’ in Gartner’s ETRM Magic Quadrant for its completeness of vision and ability to execute in 2009, 2010, and 2011. Founded in 1993, the company employs over 600 staff in 12 offi ces and support centers around the globe. www.tpt.com
EXTERNAL FEEDS HEDGE ENGINE
Trade Capture hedge linking
Marketcurves
Marketdata
FinancialSystemsFeed
Option Time &Intrinsic Value
Audit LogMark-to-Market Engine
Real-time Position
Hedge Documentation objective type of hedge description type of risk length of hedge assessment method
REPORTS ACCOUNTING
Effectiveness Tests
Fair ValueReports
OCI Changes
P&L Changes
EffectivenessTests &Measurements
COMMODITY XL FOR HEDGE ACCOUNTING™
