Hedge Accounting Advisory & Managed Services.
Whether you need strategic guidance to build your hedge accounting framework or a fully outsourced team to run it every month, the Hedge Effective Advisory team have you covered.
Advisory Services.
Strategic Expertise, On Demand.
Finance teams who need specialist hedge accounting expertise without committing to a full-time hire are who we help best. We work alongside your team to design, document, and implement hedge accounting frameworks that pass audits time after time, and scale with your business.
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We design hedge accounting policies that align with your risk management strategy and meet IFRS 9 / AASB 9 requirements. Every policy is written to pass audit and tailored to your specific hedging instruments and risk exposures.
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Proper documentation is the foundation upon which successful hedge accounting can be built.
We develop comprehensive documentation frameworks covering hedge relationships, risk management strategies, effectiveness testing methodologies, and source data requirements.
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We design and implement effectiveness testing methodologies that meet IFRS 9's stringent requirements. This includes prospective and retrospective testing, statistical methods (where appropriate), and clear documentation of test results.
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An audit will make even the most seasoned professional worry a little. To assist you to the greatest extent, before your auditors arrive, we will review your hedge accounting program for completeness, accuracy, and compliance. In doing this we will identify gaps, recommend fixes, and prepare briefing materials for your audit team, so you can gain peace of mind before they arrive.
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We train your finance team on hedge accounting principles, your specific documentation framework, and the use of our Hedgehog Software. Our goal is to leave your team more capable than when we are first engaged.
Managed Services.
Fully Outsourced Hedge Accounting.
Our Managed Services specialists act as your outsourced hedge accounting function. They will handle the monthly operational burden — from valuations and journals to testing and audit support — so your team can focus on strategic finance and adding value there.
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We prepare mark-to-market valuations for all hedging instruments using independent market data. Every valuation is documented, reconciled, and ready for audit review.
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Our team will prepare and document all hedge accounting general ledger journals — including hedge ineffectiveness, basis adjustments, and reclassifications — in a format ready for your ERP system.
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We calculate Credit Value Adjustments (CVA) and Debit Value Adjustments (DVA) for uncollateralised derivatives, ensuring your valuations reflect counterparty credit risk in accordance with IFRS 13.
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Let us perform monthly effectiveness testing (both prospective and retrospective) and then prepare clear, board-ready reports that explain test results, identify any ineffectiveness, and provide you with recommended actions.
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Hedge accounting documentation should be viewed as a living document. We maintain and update your hedge documentation throughout the life of each hedge relationship, ensuring it remains accurate and audit-ready – at all times.
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We support your audit team with detailed workpapers, methodology explanations, and direct liaison with auditors. We also prepare executive summaries and board papers that communicate hedge accounting results in plain language.
Advisory vs Managed Services - Which Is Right for You?
If your team has the capacity but lacks technical hedge accounting expertise to make real-time recommendations, our Advisory services give you policy design, documentation, and audit support while you keep the bulk of your processes in-house.
Conversely, if you'd rather rely on our expertise, or if you lack the skills internally, our Managed Services offering provides end-to-end services each month. This incorporates documentation, MTM valuations, journal entries, effectiveness testing and disclosures, with everything accessible through our HEDGEHOG platform, removing reliance on one person's time or knowledge.
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Most Advisory engagements take between 1-2 months from kick-off to the provision of audit-ready documentation. Once the framework is in place, Managed Services can begin immediately.
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Our proprietary tool – the HEDGEHOG Method – is something we live and breathe. Our team are highly skilled in developing and implementing the methodology to your business within one month.
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Yes. We can work with data from any TMS, ERP, or a spreadsheet-based system. Hedgehog Software was designed to integrate with common platforms to streamline data flow.
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We typically need your existing derivative confirmations, risk management policy, prior period financials, and details of your current accounting system(s). We provide a detailed information request list at the start to make this as easy as possible.
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Absolutely. Audit support is included in both Advisory and Managed Services engagements. We prepare workpapers, liaise directly with auditors, and attend audit meetings as required.
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.