Hedge Accounting for FX Swap - Group Ledger IFRS (2UF)

Hedge Accounting for FX Swap - Group Ledger IFRS (2UF)

This process helps you to mitigate profit and loss volatility from the use of derivatives.

Currently, the scope item supports IFRS 9 and covers cash flow hedge using FX forwards (including NDF) as hedging instruments, and using FX Swap as to transfer hedging instruments from the original exposure period to a new exposure period if an overhedge situation occurs in the original exposure period.

Key Process Steps Covered

  • Execute original situation for FX forwards or non-deliverable forwards
  • Define hedging area based on hedging policy
  • Enrich, upload, and release forecast and planning data
  • Determine net open exposure and make hedging decision
  • Execute over-hedge situation for FX swaps
  • Prepare and release designation
  • Determine NPV, execute valuation, and classification at period end
  • Process reclassification for hedging relationship at balance sheet recognition date
  • Process dedesignation at maturity date
  • Reclassify hedging reserve and cost of hedging reserve at exposure subitem end date

Benefits

  • Provide an overview of net open exposure amount
  • Support the management of hedge accounting
  • Reduce manual operation, such as hedge relationship mapping, designation and classification
  • Make better operational and strategic decisions using the comprehensive reporting and analysis tools

Where is Hedge Accounting for FX Swap - Group Ledger IFRS(2UF) being used?

This Scope item is used in the following way:

  • As a support function of Treasury Management within Finance Scope Item Group

Process flow of Hedge Accounting for FX Swap - Group Ledger IFRS (2UF)

Find below the process flow of the scope item Hedge Accounting for FX Swap - Group Ledger IFRS as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Hedge Accounting for FX Swap - Group Ledger IFRS (2UF) - S/4HANA OP
Ref: Finance of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
Place comment