Fair Value and Hedge Accounting Services for Soft Commodities
HedgeStar provides fair value and hedge accounting services to entities of all types that utilize the soft commodities markets to hedge risks.
Fair Value of Soft Commodity Contracts for ASC 820 (FAS 137) and GASB 72
HedgeStar calculates the fair value of soft commodity contracts from simple futures contracts to complex over-the-counter swaps and options. In determining the fair value, HedgeStar uses observable market data combined with proprietary pricing models to adjust the mark to market values and incorporate non-performance risk as required under ASC 820 (FAS 157) and GASB 72. HedgeStar analyzes the underlying instrument, verifies its asset classification, and determines the methodology to use to accurately adjust the fair value to determine the exit price of each soft commodity contract.
Hedge Accounting Services for ASC 815 (FAS 133), GASB 53, and IAS 39/IFRS 9
HedgeStar provides comprehensive services for hedge accounting of soft commodity derivatives. This includes the documentation required to achieve hedge accounting and all of the analytics that are required by auditors to measure effectiveness of the hedges. HedgeStar also provides ongoing analysis and journal entries for our hedge accounting clients.
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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.