Grains markets are where the first known commodity trading occurred centuries ago. The most common grains hedged are wheat, corn, soybeans, oats and barley. The fundamental hedging driver with all grains is that harvest yield varies from season to season depending on a myriad of factors—including weather, which remains beyond humankind’s control.
Fair Value and Hedge Accounting Services for Grain Commodities
HedgeStar provides fair value and hedge accounting services to entities of all types that utilize the grain commodities markets to hedge risks.
Fair Value of Grain Commodity Contracts for ASC 820 (FAS 137) and GASB 72
HedgeStar has a consistent, proven approach to valuing grain commodities in compliance with ASC 820 (FAS 137) and GASB 72. We classify the commodity hedge using the fair value hierarchy, and then apply an accepted valuation technique to measure fair value. We also determine non-performance risk. We work closely with auditing firms to verify that our methodology and classifications meet all audit requirements.
Hedge Accounting of Grain Commodities for ASC 815 (FAS 133), GASB 53, and IAS 39/IFRS 9
HedgeStar offers a full range of hedge accounting services to entities using grain commodities to hedge risk. We provide hedge effectiveness testing and measurements of ineffective hedge results, hedge designation memos, retrospective and prospective testing, and journal entries for hedging relationships.
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- Accounting Standards Update for Hedge Accounting – A Cargill and HedgeStar Q&A
- Summary of the new Accounting Standard Update as it relates to Hedge Accounting, and what it means for commodity hedge accounting.
- Summary of the new Accounting Standard Update relating to hedge accounting. What financial institutions need to know.