RTL Group Selects Reval Solution for IAS 39, IRFS 7 and Derivative Valuation
RTL Group has selected Reval’s HedgeRx to handle foreign exchange and interest rate risk management. RTL Group has 38 television channels and 32 radio stations in 10 European countries. RTL hopes that the solution will enable it to deal with the problems surrounding hedge accounting under IAS 39, stress testing under IFRS 7 and both simple and complex derivative valuations. The solution will provide valuation and documentation of RTL’s interest rate and foreign exchange instruments and is designed to allow them to assess the effectiveness of hedging derivatives to mitigate earnings volatility. Implementation is expected to go live before the end of 2007 to provide treasury managers with real-time information on positions, exposures and profitability and to reduce processing times and eliminate prior reliance on spreadsheets.