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© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2
Today’s Presenters
Jonathan ZemanSenior Consultant
Thomas GavaghanManager, North America Pre-Sales
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 3
FX Program Management: Procedural elements to managing your FX Program
Valuations: Foundational building block to proper accounting treatment
Derivative Accounting Compliance
Automated Accounting
Agenda
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
FX Risk Management Processing
Collection
Classification
Aggregation
Policy Setting
Trade Capture
Visibility & Positioning
Limits Monitoring
Scenario Analysis
Valuation & Effectiveness Testing
Confirmations
Settlements
Accounting
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6
Balance Sheet– Translation & Remeasurments
Cash Flow– Forecasted revenue and expense
Integration = Centralization
Exposure Management
Collection
Classification
Aggregation
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7
Accounting and economic strategy and objectives
Aggregation of executed transactions in the market
Calculate market value of held positions
Centralized visibility of existing positions and exposures
Front Office Management
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 8
Establish and maintain limits
Perform scenario analysis– What if?– Stress testing
Report & Dashboard creation– Internal– Regulatory
Middle Office Management
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 9
Collection and integration of auditable Market Rates:– Spot Rates– Forward Rates– Volatility Surfaces
Fair Value Measurements– Transactional & Portfolio valuations
Effectiveness Testing:– Critical Terms Matching, Shortcut, Long-Haul Regression
Valuation & Effectiveness Testing
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10
Electronic confirmation and matching process
Generate & Net settlements
Automated integration with GL
Back Office Management
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 11
Best Practices Questions to Ask:
Topic Question
Front Office What tools are available to easily integrate with my ERP(s), and other exposure tracking tools to track against policies?
Middle Office What is the source of my market rates for valuing my portfolio, and how easy is it to document our results for audit?
Back Office How do I get the proper accounting entries posted into my GL?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 13
Accounting Guidelines– ASC 815 / 820• Fair Value, Cash Flow, Net Investment
– Translation vs Transaction Risk
• Disclosures (Quantitative and Qualitative)
– Entity level (e.g. Foreign Exchange Risk)
– Revenue Recognition
– Initial measurement and Re-measurement
– ASC 830• Functional vs. Reporting Currency
– Parent and Subsidiary Relationship
FASB guidelines that systems can help simplify…
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15
Seamless End to End Accounting– Journal entry to general ledger account creation and
automation– Interfacing capability
Government Legislature– Dodd Frank / EMIR / Volcker / Basel III
Margin Processing– Cash position monitoring and reporting
Post Trade Environment Automation
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16
Thank You for Attending! - Further Reading
Blog posts:(subscribe to receive our blog posts under http://www.kyriba.com/blog)
FX: Managing Uncertainty in 2016
FX: To Hedge or not to Hedge, that is the Question
EM FX hedging: treasury management systems outshine ERP (Euromoney)