FTI Treasury Talks: Hedge Accounting – Practical Considerations for Common Treasury Activities
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About this Episode
“FTI Treasury Talks: Conversations with the Experts” series aims to provide valuable insights and practical strategies in the fields of Treasury Outsourcing, In-House Banking Solutions, and Corporate Services.
In this third talk, “Hedge Accounting – Practical Considerations for Common Treasury Activities,” our panel of experts is set to illuminate various facets of hedge accounting, equipping you with the knowledge required to make well-informed decisions for your organization’s needs.
When it comes to managing hedge accounting, treasurers and accountants involved in everyday treasury tasks need to carefully think about how it practically impacts their work, making sure it aligns with accounting standards and helps manage risks effectively. Striking a balance between the complexities of hedging strategies and the specific details of treasury operations is crucial to promote financial transparency and ensure compliance.
In this episode, Justin Callaghan, CEO at FTI Treasury, sits down with Marie Gaynor, Treasury Accounting Manager at FTI Treasury, for a wide-ranging conversation on hedge accounting and what it means in practice for treasury and finance teams.
They begin with the fundamentals, setting out what hedge accounting actually is and why companies choose to apply it, before looking at how it connects to the common treasury activities that teams deal with day to day, from managing FX exposures to interest rate risk. From there, Marie walks through the nuts and bolts of getting it right, covering the documentation, designation and effectiveness testing that sit behind a hedge relationship and keep it qualifying over time. The conversation closes with practical advice for anyone coming to hedge accounting for the first time, including the areas that most often trip teams up and where it pays to be careful early on.
Guest / Speakers
Justin Callaghan
Marie Gaynor
Key Topics covered
Why this matters
For treasury and finance teams, hedge accounting is one of those areas where the theory and the day-to-day rarely line up neatly. Applied well, it keeps reported earnings from swinging on the back of exposures a company has already managed, and it gives a clearer picture of how risk is actually being handled. Applied badly, or documented late, it creates volatility in the numbers and questions from auditors that are hard to unwind after the fact. Getting the fundamentals right, from designation through to effectiveness testing, is what separates a hedge that does its job on paper from one that only works in theory. That is why it is worth understanding properly, whether you are setting it up in-house or leaning on specialist support.
About FTI Treasury Talks
Expert conversations on treasury management, risk, technology, and in-house banking — designed for treasury professionals, CFOs, and finance leaders.
