Software for the Smart Treasury

The hot topic this year in corporate treasuries is International Financial Reporting Standard (IFRS) 9, which addresses the accounting for financial instruments. IFRS 9 will require financial assets to be measured at amortised cost or fair value.

IFRS 9 was promulgated by the International Accounting Standards Board (IASB). It contains three main topics:
classification and measurement of financial instruments, impairment of financial assets and hedge accounting.

The four specific areas that affect us in the treasury sector are:

  • Time value for FX and Interest Rate Options
  • Currency basis on Cross Currency Interest Rate Swaps
  • Hedging of Commodity Risk
  • Derivatives as hedged items

The first area we’ve been working on is Management and Risk Reports, which largely based on earlier IAS 39 material.

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