IFRS accounting requires that your interest rate (IRS) portfolio is valued against the market rate. This is a complex and expensive matter. Having your own accurate and reliable pricing systems could easily cost your company over 100,000 euros per year. Why pay that kind of money for something you use at most once or twice a month? And even if you have systems or spreadsheets in place, it simply takes up too much time.
Of course, you can request valuations from your counterparty banks or use their online systems, however, that will prevent you from analysing your positions in an accurate, timely and anonymous fashion. Another limitation is that banks often do not provide any supporting calculations. For that reason, most auditors prefer an independent valuation. At ICC we will be pleased to assist you. Our pricing and valuation systems are among the best and most accurate available.
The result can then be used for risk management analysis, as well as for hedge accounting and financial statement reporting purposes. The data can be presented in pretty much any tailor-made format.
Our team of derivative and hedging experts currently assist many companies around the world by providing independent derivatives valuations services. Leave your email address and we will send you a couple of different samples.