Expert Talk: 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, part of the Murex pre-sales team, analyzes how the alignment of various accounting standards (e.g., IAS-39 and IFRS-9) requires accuracy in figures published by banks.

He explains how recognizing the specific usage of an asset is key in accurate financial reporting. He discusses how Murex can help financial institutions and corporates navigate different hedge accounting requirements, including how hedge accounting is being used to reduce the volatility in the income statement.