Hedge Accounting Fulfill regulatory requirements with confidence.

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About Hedge Accounting

Achieve hedge accounting with cost-effective and sustainable workflows. Streamline your reporting to comply with evolving International (IFRS) and US GAAP (FASB) standards. Remain confident in your company’s financials with a proven, secure, and auditable solution.

Why Hedge Accounting

Changing regulatory requirements adds time and cost pressures for commodity trading organizations maintaining a compliant hedging program. These businesses need solutions that provide a complete, automated audit trail of all their hedging activity throughout its entire lifecycle. ION’s Hedge Accounting solution automates the process of effectiveness testing and documentation, enabling businesses to understand their sources of income volatility.

  • Reduce risk of restatement

  • Comply with latest standards

  • Decrease operational risks

  • Enhance hedge decision making

  • Streamline operations

  • Minimize economic risk

Key features

  • Translate risks into opportunities

    • Assess the impact of market changes on hedge effectiveness.

    • Improve correlations with intelligent simulation analysis tools and user-defined regression analysis.

    • Forecast earnings-at-risk by shocking curves by percent or standard deviation.

  • Ensure compliance with IFRS and GAAP requirements

    • Adhere to best practices with a clear user interface and intuitive workflows.

    • Eliminate manual processes and spreadsheet use from hedge management.

    • Document all fair value levels and the market data source used in underlying valuations.

  • Gain confidence with comprehensive reporting

    • Tailor reports for your business needs

    • Generate quarterly and annual reports with thorough hedge tracking and documentation tools.

    • Benefit from complete disclosure reporting capabilities.

Enhance your solution with optional value-added modules

ION’s Hedge Accounting supports a comprehensive hedge management program, enabling businesses to achieve optimal economic benefit, mitigate the risk of unfavorable audits, and comply with disclosure requirements. Better yet, it’s available on the ION Cloud, which can lead to substantial savings.

Frequently Asked Questions

  • We run our hedge accounting program on spreadsheets. Why do we need a CMS?

    Spreadsheets are typically not an acceptable, auditable resource when dealing with a company’s financials. ION’s Hedge Accounting receives an annual SOX compliance certification to ensure the safety of your data. Further, ION’s Hedge Accounting provides the ability to assign roles to users and delegate duties, further ensuring security.

    Spreadsheets also lack the sophistication to assess market changes on your positions, making it difficult to ensure your portfolio is hedged effectively. Without this functionality, your business is vulnerable to income volatility.

  • What differentiates ION’s Hedge Accounting from its competitors? 

    The ION Hedge Accounting team’s unparalleled commitment to product innovation distinguishes it from other hedge accounting systems. Developed over two decades by industry experts, ION’s Hedge Accounting is specifically designed to meet the needs of commodities-intensive organizations. The solution integrates with commodities trading and risk management systems to streamline your organization’s financial reporting and facilitate compliance.

  • Can Hedge Accounting help me comply with ASC 815 (FAS 133), ASC 815-10 (FAS 161), IAS 39 (IFRS 9), CICA 3865, AASB 139, and SAS 133?

    ION’s Hedge Accounting supports a comprehensive risk management program that enables firms to balance optimal economic benefit, risk management, and stable financial statements. It provides a single platform to effortlessly ensure compliance with ASC 815 (FAS 133) and IAS 39 (IFRS 9) requirements, along with other country hedge accounting standards. Powerful analytical functionality like OCI sensitivity analysis, formula curves, and backtesting help measure hedge effectiveness and optimize hedging strategies.

Latest Commodities awards

Energy Risk Awards 2023

Oil, Gas/LNG, power, metals and agriculture products

Energy Risk Awards 2023

Market analytics, model valuation and risk exposure management

Energy Risk Awards 2023

Emissions and green certificates

Energy Risk Awards 2023

CTRM Software House of the Year

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Latest Commodities news

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London – 28 February 2024: ION Commodities, a global leader in energy and ...

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Discover what ION can do for you