Governmental entities have been using more complex financial products to meet rapidly changing financial markets, including incorporating the use of derivative contracts to hedge against certain risks. As derivative use increased in the government sector, there was a corresponding increase in the reporting standards for hedging transactions. The Government Accounting Standards Board (“GASB”) Statement No. 53 (“GASB 53”) requires that state and local governments report the fair value of derivatives in their financial statements. HedgeStar helps governmental entities meet the reporting requirements of hedge valuations and accounting, specifically those related to GASB 53.
GASB 53 requires that public entities provide additional disclosure and implement hedge accounting methods to measure the effectiveness of each outstanding derivative transaction. HedgeStar can help.