With the required shift to IFRS by March 2011, Indian companies have to climb a steep learning curve in terms of understanding valuation of financial instruments and hedge effectiveness (amongst other issues).
We provide independent certified valuation of derivatives and effectiveness testing of hedges to help our clients comply with financial reporting requirements under IFRS and IAS standards.
We would also help in presentation of accounts, valuation of loans and FCCB, and accounting for business combinations.
Our derivatives valuation team works with clients to
- Review hedge documentation, or help put it in place
- Value derivative instruments, whether for negotiating with counterparties or for period-end reporting
- Conduct effectiveness testing of hedges
- Provide certifications
- Recommend restructuring of hedges, as necessary, for accounting compliance
- Interface with auditors to address gaps in understanding, valuation techniques, etc