botminds.aiRequest a demo

Hedge Accounting demo

Drafts each hedge memo at the trade, tests every hedge each quarter and rechecks it independently 1:35

Book a demoExplore the solution

What the demo shows

Prepares hedge documentation, effectiveness tests and journals under ASC 815 and IFRS 9

Each hedge is one page: the designation memo the documentation agent drafted within the hour of the trade, every element cited to the trade, the bank confirmation, the forecast and the standard; beside it, the regression of the hedge against the hedged item with slope, R² and the pass bands; below, the journal the test produces. A testing agent runs the tests each quarter, and a second-check agent rebuilds the hypothetical derivative and recomputes every test and journal without seeing the first answer. A probability agent reads the S&OP cycle, the order book and customer letters every Monday; when a forecast falls it proposes the partial de-designation and the reclassification out of AOCI, with options and citations, and watches the pattern of missed forecasts. The hedge accountant approves, edits or sends back each item with a reason code; the controller co-signs anything above $250,000 that hits earnings; the auditor reads the whole file, asks the agents and re-performs any test.

Transcript

  1. Hedge Accounting documents, tests, and books hedges under ASC 815 and IFRS 9 for Treasury teams.
  2. Hedge Accounting holds only if the file exists on the trade date.
  3. It can't be fixed later.
  4. Seven agents run the close for 46 hedges.
  5. Laura sees what needs her.
  6. One hedge, one page, the memo, written 21 minutes after the trade, every line cited.
  7. The regression. Slope minus 0.97.
  8. R squared 0.94.
  9. It passes. A second agent rebuilt it alone and agrees.
  10. Laura approves with a reason code.
  11. Harder. Euro sales fell 40%, so the agent drafts a partial D designation and a $312,000 reclass.
  12. Laura asks why. It cites the customer's letter and the paragraph it relies on.
  13. She approves and the controller co-signs.
  14. Every value cited, every decision signed and logged.
  15. The goal, hedges documented on time.
  16. A three-day close, $5 million out of earnings.
  17. Built on Botminds: agents, data, screens, and governance on one platform.

Transcribed from the film’s narration. Captions are on the player.