Rebalancing the Cost-Benefit Ratio of Hedge Accounting

Banks have always been doing economic hedging in order to reduce risk and volatility, but they have not always been reflecting this in the financial statements. Without a hedge accounting solution, banks usually rely on manual processes to perform hedge accounting, but manual work can become burdensome with the ever-increasing number of accounting postings.

In this video, Mohamed Chaabane, Pre-Sales at Murex, shares his thoughts on how the alignment of various accounting standards (IAS-39 & IFRS-9) requires accuracy in the figures published by banks. He explains how recognizing the specific usage of an asset is key in accurate financial reporting, and how Murex can help financial institutions and corporates navigate through the different requirements around hedge accounting.