FXpress Functionality Responds to Latest FASB Guidelines
FXpress has announced the release of FIRST F7, the latest version of the company’s web-based treasury solution for corporations worldwide. FIRST F7 enhancements address the upcoming FAS 157/159 guidelines associated with fair value measurement and increased automation in the areas of trade requests, back office confirmations and bank statement imports. FAS 157 requires that non-performance risk should be included in the computation of fair value. Therefore, a counterparty’s risk of default should be used to value an asset and the company’s own credit risk should be used to value a liability. In addition, new disclosures on the extent to which fair values are based on unobservable inputs are required. FASB affirmed this week that the implementation of FAS 157 will not be delayed and will be required for fiscal years beginning after 15 November 2007. The issuance of FAS 159 allows companies the option to value instruments at fair value. This enables decreased accounting complications for financial instruments and volatility of earnings resulting from measuring relevant liabilities and assets unequally. With FIRST, users can simply select a checkbox in order to measure contracts at fair value regardless of the associated accounting rule or hedge relationship. Additional FIRST F7 enhancements include automation features that are critical for users to achieve best possible straight-through processing (STP).