ASC 815 (FAS 133) Hedge Accounting Services

DerivActiv provides full range of services to companies that elect to utilize the hedging provisions of ASC 815 to record their derivative transactions. Services provided to our clients include: preparation of hedge documentation, mathematical testing of initial effectiveness, periodic evaluations of on-going effectiveness, and preparation of journal entries to be used to record the derivative in the client’s financial records.

ASC 815 Accounting for Derivative Instruments and Hedging Activities (formerly known as FAS 133) is a comprehensive accounting standard that was originally issued in 2001 and provides entities with guidelines and requirements for measuring hedge effectiveness for derivative instruments. Generally, if a derivative is a hedge, the gains and losses associated with periodic changes in value will flow through other comprehensive income rather than be recognized in earnings immediately. ASC 815 is not mandatory; it is elected by the company if the company decides to classify its derivatives as hedges.

For assistance with ASC 815 hedge accounting call DerivActiv at 1-866-200-9012.

Valuation Services and ASC 815

DerivActiv performs valuations on hedging derivatives that meet the rigorous reporting standards in today’s market. In addition we perform all of the ASC 815 hedge effectiveness calculations and provide a report to our clients that can be used to prove the hedging relationship to their auditors. Our services include:

• Creation of the initial hedge documentation (a hedge designation memorandum)
• Initial effectiveness testing
• Retrospective and prospective testing using permitted testing methodologies (regression or dollar offset)
• Ongoing testing period to period
• Journal entries
• Additional disclosure in financial statements

DerivActiv provides everything you need for determining and documenting hedge effectiveness under ASC 815. Call us at 1-866-200-9012 for a demonstration on the services we provide.