Hedge Accounting Solutions. Tailored to Your Business.
From strategic advisory and fully outsourced managed services to proprietary software, we will provide the expertise, tools, and frameworks that your finance team needs to achieve clean audits and full IFRS 9 compliance.
Why Outsource Hedge Accounting?
It’s no secret that hedge accounting is one of the most technically demanding areas of financial reporting. It sits at the intersection of derivatives valuation, accounting standards (IFRS 9 / AASB 9), audit scrutiny, and board reporting.
Getting it wrong can mean restatements, qualified audits, and regulatory scrutiny.
Getting it right boosts board confidence but requires specialist expertise that most in-house teams simply don't have.
We’ve seen first-hand how failed hedge accounting leads to P&L volatility, restatements, qualified audit opinions, and regulatory censure. The cost is potentially reputational and financial cost that far exceeds the investment in specialist support.
The Cost of Getting It Wrong?
Even where in-house teams may have the technical knowledge, it is rare for one person to have it all. This means you need a team of experts across multiple areas, but this also then means, for cost mitigation, it cannot be their only responsibility. The result is employee expense, delayed reporting, rushed documentation, and effectiveness testing that may not stand up to audit scrutiny.
The Opportunity Cost of Doing It In-House
Our Three Solution Pillars
We deliver hedge accounting support through three integrated pillars. Each can and does stand alone, but they provide optimal coverage when supplied as a complete end-to-end solution.
01
Advisory Services
This pillar delivers strategic guidance on hedge design, policy documentation, effectiveness testing methodology, and audit readiness.
We work with your existing team (internal or external) to build a hedge accounting framework that passes audit and which scales with your business.
02
Managed Services
Looking for fully outsourced hedge accounting? Let us handle everything from documentation and MTM valuations to GL journals, CVA/DVA calculations, effectiveness testing, and audit support. You get clean, board-ready reports every month without adding headcount.
03
Hedgehog Software
Hedge Effective’s proprietary advisory-tech platform (Hedgehog) gives CFOs and finance teams real-time visibility into hedge positions, effectiveness ratios, and audit trails — without the six-figure price tag of a full Treasury Management System.
We don't do general accounting. We don't do tax. We don't do audit. We do hedge accounting and nothing else. Our focus on these elements translates to deeper expertise, faster delivery, and better outcomes for you.
How we're different
Specialist Focus
The HEDGEHOG Method is our 8-pillar framework for designing, implementing, and maintaining hedge accounting programs that succeed. Our methodology ensures nothing is missed and every program is built to audit standard from day one.
Proprietary Methodology
The HEDGEHOG Method is our 8-pillar framework for designing, implementing, and maintaining hedge accounting programs that succeed. Our methodology ensures nothing is missed and every program is built to audit standard from day one.
The HEDGEHOG Method
Our proprietary framework (aptly named the HEDGEHOG METHOD) covers every element of a successful hedge accounting program — from high-level strategy and risk assessment through to documentation, testing, reporting, and audit support.
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Our Advisory Services include hedge accounting policy design, documentation and framework development, effectiveness testing methodology, audit readiness reviews, and, as required, training for your finance team.
Our approach is to work alongside your existing team to build a program that meets IFRS 9 requirements and assists with your business goals.
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Our Managed Services spans the full operational obligations of hedge accounting: monthly MTM valuations, GL journal preparation, CVA/DVA calculations, effectiveness testing, hedge documentation maintenance, and audit support.
At the end of each period (as designated by you) we will deliver board-ready reports to you.
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Yes. Many clients begin with Advisory Services to design and implement their hedge accounting framework, then see the greater value in transitioning to Managed Services once the program is operational.
The transition is seamless and the upside to you significant.
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We support all major hedge types under IFRS 9 / AASB 9: fair value hedges, cash flow hedges, net investment hedges, and hedges of groups of items.
Our team are also capable in handing commodity price risk, FX risk, and interest rate risk.
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Yes. We work with IFRS 9, AASB 9, and IAS 39, and can support organisations reporting under Australian, New Zealand, Singaporean, and other APAC regulatory frameworks.
Frequently asked questions.
Ready to remove the guesswork from Hedge accounting?
If you want to learn more about Hedge Accounting, book a no-obligation discovery call with our founder, Kevin Mitchell. We will walk you through how we can help your team achieve clean audits and full compliance.