Using derivatives and hedge accounting can be a valuable method that your business may want to consider in an effort to reduce exposure to financial risks such as interest rate risk, foreign exchange risk or commodity risk.
To help guide you, MHM has established the Derivatives Assistance Group (DAG) to assist clients with accounting for derivatives. The members of the DAG are subject matter experts in the area of derivatives, fair value accounting and auditing, and the valuation of financial instruments.
The DAG will provide a turn-key approach to help your publicly or privately held company with its use of derivatives and hedge accounting including the performance of a comprehensive review of your company’s business model and the related use of derivatives to determine the most effective operational and risk management strategies. We’ll also help you decide whether a cash flow, fair value, foreign currency, and/or the hedge of a net investment in a foreign operation is the proper accounting hedge to utilize.
There are three fundamental areas we focus on:
- Assisting with the development of your company’s derivative and hedging strategy
- Helping you understand the accounting behind derivatives
- Providing a soup to nuts approach with the implementation and maintenance of hedge accounting, including the preparation of the requisite hedge accounting documentation
Contact one of our service professionals listed at right to learn more about how derivatives and hedge accounting is right for your business.