New Accounting Module Tackles FAS 133 Reporting Requirements
Kiodex has added a new accounting tools module to its Risk Workbench(SM) suite to address market need for accurate SFAS 133 reporting on derivatives and hedging activities. The firm said the new module would provide a platform for companies who must abide by stringent reporting and accounting regulations – specifically, those who must provide accurate reporting of derivatives usage as required by the Financial Accounting Standards Board in its Statement No. 133. ‘We have seen recently the potential disastrous consequences for companies that do not maintain high levels of corporate accounting transparency,’ said R. Martin Chavez, CEO of Kiodex. FAS 133 requires firms to report gains and losses on derivative transactions in earnings, unless the trades are specifically designated as hedges. Prior to FAS 133, firms were not required to report derivative positions on their balance sheets, and were not required to report changes in the positions’ value in earnings, particularly if the trades were over-the-counter (OTC) instruments.