Hedge Accounting and Effectiveness Testing (ASC 815)

In order to avoid earnings volatility, most companies need to elect special accounting treatment prior to executing hedge transactions as described in ASC 815.  The designation and implementation of this process can be cumbersome and hard to understand.  Cardea Partners can assist your organization in concert with your accounting department and auditors to achieve desirable treatment for your hedges for reporting purposes. This includes fair value assessment including credit value adjustments as required by ASC 820 and ongoing effectiveness testing.