MINNEAPOLIS, MN, April 01, 2010
/24-7PressRelease/ -- DerivActiv, LLC a leading provider of hedge effectiveness testing and independent derivative valuations, has recently completed programming for its new GASB 53 hedge effectiveness module, designed to automate calculations to help governmental entities determine whether their hedges are effective under the standards now required by GASB 53.
The GASB 53 Statement on Accounting and Financial Reporting for Derivative Instruments requires that public entities provide additional disclosure and implement hedge accounting methods to measure the effectiveness of each outstanding derivative transaction. As a member of the GASB 53 advisory committee and contributor to the creation of the Guide to Implementation of GASB 53 that was published by GASB in February 2009 in anticipation of the June 15, 2010 implementation, DerivActiv has in-depth knowledge of GASB 53 and the new requirements.
"With the integration of our new hedge effectiveness module into our proprietary pricing models, we can perform hedge effectiveness calculations more efficiently," says Farah Lotia, Senior Vice President at DerivActiv. The module collects and calculates all the data required to perform hedge effectiveness testing for all of the various hedges implemented by public entities including interest rate swaps, swaptions, foreign currency hedges, commodity transactions and equity hedges.
"Our historical derivative pricing system can calculate daily values back to 1993. The valuation database is a key component of our ability to analyze all of the options to calculate effectiveness that are available under GASB 53," says Ms. Lotia.
Since GASB 53 allows entities to use many different calculations, it is important that all the available information is analyzed to determine whether a derivative is an effective hedge. The GASB 53 hedge effectiveness module is designed with the flexibility of GASB 53 in mind and is fully integrated with DerivActiv's derivative pricing systems to deliver timely and comprehensive reports.
For more information visit
www.derivactiv.com or e-mail
info@derivactiv.comAbout DerivActiv
DerivActiv, LLC is a leading provider of web-based derivative valuation and other financial monitoring services, serving financial institutions, corporations, non-profits, and municipalities. DerivActiv provides daily valuations of financial products, including equity, currency and fixed income securities, derivatives as well as a number of alternative investments. DerivActiv is used for FAS 133, FAS 161,Topic 820 (formerly FAS 157) and GASB 53 compliance in financial statements, board and finance committee reports, and as an internal risk management tool. For more information call 1-866-200-9012, or visit the company's website at
www.derivactiv.com.
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