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New York, NY, United States, 2013/05/21 - Deloitte Australia has implemented Reval’s Credit Value Adjustments (CVA) solution to increase automation and efficiency in challenging calculations required under IFRS 13, announced Reval - Deloitte.com / Reval.com.
Deloitte Australia has implemented Reval’s Credit Value Adjustments (CVA) solution to increase automation and efficiency in challenging calculations required under IFRS 13, announced Reval, a leading global Software-as-a-Service (SaaS) provider of comprehensive and integrated solutions for Treasury and Risk Management (TRM) today.
IFRS 13, which is effective for accounting periods beginning on or after 1st January 2013, requires the fair value of derivatives to be based on a reasonable “exit price”, the price that would be received to sell an asset or paid to transfer a liability. To achieve compliance with the standard, companies will be required to incorporate the appropriate credit risk into financial instrument valuations. The impact of IFRS 13 will be significant as CVAs in fair value calculations may cause greater income statement volatility and potentially increase hedge ineffectiveness.
“We chose Reval as our strategic partner for their deep expertise in financial instruments and SaaS technology, and recently enhanced our solution with their CVA capabilities,” says Steven Cunico, partner at Deloitte Touche Tohmatsu. “The application of CVA is an evolving subjective area where corporations should consult their auditor or accounting advisors for guidance. Using Reval's solution, we are able to gain efficiency through automating the complex calculations required under IFRS 13.”
For six years, Deloitte Australia has leveraged Reval’s SaaS solution to provide advisory services to their clients in an ever-changing regulatory environment and deliver outsourced hedge accounting services. Additionally, Deloitte Australia uses Reval to help with valuation and hedge effectiveness testing in their audit work. The IFRS 13 capabilities have been used since December 2012.
“We are proud that Deloitte Australia relies on our SaaS solution to provide superior services to their clients,” says Tony Singleton, Managing Director Asia Pacific at Reval. “Reval’s integrated market data and credit curves allow corporations and audit firms to systematically calculate valuations and maintain on-going compliance with the changing regulatory landscape.”
About Deloitte Australia
Deloitte Australia (deloitte.com) has more than 520 partners with close to 6000 people providing a broad range of audit, tax, consulting, and financial advisory services to public and private clients. In recognition of the complexities of AASB 139, the Australian Accounting Standards Board's adoption from IAS 39 Financial Instruments: Recognition and Measurement, Deloitte Australia has a dedicated Treasury and Capital Markets team, whose sole focus is to assist organisations to practically deal with the interpretation, documentation, valuation and accounting entries required by the standard. The specialists provide clients with a practical, prompt and efficient resolution to the issues that can arise from new financial instruments standards.
Reval (reval.com) is a leading, global Software-as-a-Service (SaaS) provider of comprehensive and integrated Treasury and Risk Management (TRM) solutions. Our cloud-based software and related offerings enable enterprises to better manage cash, liquidity and financial risk, and includes specialized capabilities to account for and report on complex financial instruments and hedging activities. The scope and timeliness of the data and analytics we provide allow chief financial officers, treasurers and finance managers to operate more confidently in an increasingly complex and volatile global business environment. Using Reval, companies can optimize treasury and risk management activities across the enterprise for greater operational efficiency, security, control and compliance. Founded in 1999, Reval is headquartered in New York with regional centers across North America, EMEA and Asia Pacific.