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Episode 3

FTI Treasury Podcast | Episode 3: Hedge Accounting – Practical Considerations for Common Treasury Activities

Published

January 29, 2024

Topics

FTI Treasury Talks, FTI Treasury Talks Conversations with the Experts, Hedge Accounting, Podcast

Duration

15:45

January 29, 2024 | 15:45 | FTI Treasury Talks, FTI Treasury Talks Conversations with the Experts, Hedge Accounting, Podcast

Listen on all major platforms

About this Episode

In our third episode, titled “Hedge Accounting – Practical Considerations for Common Treasury Activities,” we focus on various facets of hedge accounting, equipping you with the knowledge required to make well-informed decisions for your organization’s needs. Justin Callaghan, CEO at FTI Treasury, engages in a comprehensive discussion with Marie Gaynor, Treasury Accounting Manager at FTI Treasury.

The conversation starts with the fundamentals, looking at what hedge accounting sets out to do and the benefits it can bring to treasury management, along with the main accounting standards that govern it and what they mean in practice. Because most businesses now operate across borders, Justin and Marie also weigh up how hedge accounting differs under IFRS and US GAAP, and where the two frameworks line up.

From there the focus turns to application, covering the common treasury activities where hedge accounting comes into play and how it works once it is put to use. Justin and Marie are candid about the level of complexity and the time it takes to do properly, which helps treasury professionals judge whether it is the right route for them. The episode finishes with advice for anyone just getting started, from the first steps to take through to the challenges to watch for and how to set a strategy up for success.

Guest / Speakers

Justin Callaghan

CEO at FTI Treasury

Justin, the CEO of FTI Treasury, has over 20 years’ experience in international cash management, financial risk management, funding, internal corporate treasury structures and treasury operations.

Marie Gaynor

Middle Office Manager

Marie Gaynor a Treasury Accountant with FTI Treasury and her responsibilities include the preparation of monthly multi-currency management accounts and consolidations to strict reporting deadlines, treasury activity reporting, budget/forecast preparation and commentary, year-end liaison with audit and tax and regulatory returns.

Key Topics covered

Purpose and Achievements: Delving into the fundamental concepts, the video explores the purpose and potential benefits of hedge accounting in treasury management. Accounting Standards: Our experts break down the main standards governing hedge accounting, providing clarity on their implications for treasury activities.

Given the global nature of business, understanding the nuances of hedge accounting under different regulatory frameworks is crucial. The conversation explores the similarities and differences between hedge accounting practices under IFRS and USGAAP.

Applications of Hedge Accounting: Highlighting its potency in the treasury toolkit, the discussion focuses on common treasury activities where hedge accounting is applied, offering practical insights into its implementation.

Time and Complexity: Addressing a key concern, Justin and Marie share valuable perspectives on the level of complexity involved and the time commitment required, aiding treasury professionals in making informed decisions.

Getting Started: Tailored for those new to the field or contemplating a hedge accounting strategy, the video provides valuable advice, insights into initial steps, potential challenges, and strategies for success.

Who should listen

This episode is for treasury and finance professionals who deal with hedging as part of their role, from treasurers and treasury accountants through to finance managers and CFOs. If you are applying hedge accounting in practice, weighing up whether to adopt it, or trying to make sense of how it works under IFRS and US GAAP, Marie’s insights will be useful. It is equally relevant for anyone newer to the area who wants a clear, practical grounding before getting started, and for teams considering specialist support to take on the complexity.

About FTI Treasury Talks

Expert conversations on treasury management, risk, technology, and in-house banking — designed for treasury professionals, CFOs, and finance leaders.

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