Risk Solutions
MARS Hedge Accounting
Complete derivative reporting solution
Bloomberg’s Multi-Asset Risk System Hedge Accounting Effectiveness (MARS HEFF) module is an industry-leading solution for meeting the requirements of hedge accounting and related financial instrument standards.
MARS HEFF facilitates the creation of hedge documentation and assessment testing to determine if a strategy can be considered highly effective under international and U.S. accounting standards.
Industry-leading systems
Our system is updated as soon as new accounting standards are published to ensure you’re getting the most useful valuation tools.
Superior customer support
Our specialists will take you through a comprehensive on-boarding process, and our 24/7 global support team will be there for the long term.
Integrated risk management
Our reporting suite integrates with our Treasury and Risk Management (TRM) solution for a simplified way to analyze commercial and financial exposures.
Flexible end-to-end solution
Our suite of risk management tools creates a seamless process to ensure compliance with fair value accounting standards.
Apply hedge accounting standards
Ensure compliance with hedge accounting and financial instrument standards across four key areas:
01.
Industry-leading systems
- The MARS HEFF API provides programmatic access to a scalable and modular reporting framework, allowing for the customization of hedge accounting reports to suit your needs, processes and existing technology stack, as it can facilitate third-party software integration.
- It is a cost-effective, seamless technology that enables a more rules-based accounting month-end process.
02.
Reporting and documentation
- The MARS HEFF reporting suite allows users to quickly obtain detailed measurements and disclosure output in order to comply with reporting requirements.
- Reports and disclosures can be run on a consolidated or trade-level basis, and include hedge adjustment, OCI release, FAS161 (current/non-current; asset/liability) and FX/IR split.
03.
Quantitative effectiveness testing
- MARS HEFF supports an extensive list of prospective and retrospective testing methods, including critical terms match, shortcut, scenario analysis, dollar offset and regression testing. These tests can be run on a periodic or cumulative basis at each reporting date to support whether a hedge is highly effective.
- It can also be integrated with MARS X-Value Adjustment (XVA) to quantify CVA/DVA adjustments into the valuation of derivatives, used for hedge accounting purposes.
04.
Controls framework
- MARS HEFF is SOC1 certified, creating a reliable control framework for the generation of records for transactions recognized in financial statements.
- We also provide transparent methodologies and track all key changes in the audit history.
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