HedgeStar presents w/ Cargill Risk Management at TEI Minnesota’s International Tax Essentials Court
By: Heidi Lindahl, Senior Marketing Manager
Minneapolis, MN – On October 24, 2017, Tim Potter, hedge accounting manager with HedgeStar, co-presented with Andrew Brodbeck, Sr. Director with Cargill Risk Management, on managing foreign exchange risk at the International Tax Essentials course presented by the Minnesota chapter of Tax Executive Institute, Inc (TEI).
The course covered diverse topics such as foreign tax credit, international compliance, earnings and profits, and transfer pricing. Attendees gained a basic understanding of global supply chain, effective global treasury management involving cash taxes, M&A due diligence and integrations of acquired company, global tax compliance efficiencies, and managing foreign exchange risk. Potter and Brodbeck focused on managing foreign exchange risk through hedge accounting.
“The biggest challenge global corporations face in managing fx risk is the lack of visibility of fx exposures and reliability of forecasts,” said Brodbeck. “The solution is to hedge against those exposures to take the guesswork out of forecasting and present a stable earnings projection.”
A majority of the companies in attendance are engaged in some form of fx risk management. Despite the fx risk management activities, those companies that do hedge do not apply hedge accounting.
“The main point we try to drive home,” Potter commented, “is that hedge accounting allows the company to take credit for its risk management activities and receive preferential accounting treatment.”
To learn more about what Cargill Risk Management can offer, please reach out to Andrew Brodbeck at firstname.lastname@example.org.
To learn more on how your company and take part in hedge accounting please reach out to Tim Potter.
Tim Potter, CPA
Hedge Accounting Manager
Heidi Lindahl, Marketing Manager