Stabilizing Financial Performance Through Strategic Hedging Video Series

How BDO Can Help Organizations Manage Financial Risk

BDO’s Derivative & Hedge Accounting Services practice is dedicated to helping clients achieve optimum results in managing their business by identifying the relevant price risks, structuring vehicles to mitigate those risks, and improving their financial results through the use of complex financial instruments. Our approach is to provide various solutions based on the client’s circumstances and risk tolerance in order to assist them in reaching their stated goals. BDO offers a full suite of services specifically focused on every area of these complex transactions, including hedging strategies for commodities, fixed income, foreign exchange, and structured products/exotics.

Derivatives are an integral part of managing a business’s cash flow, thus requiring active participation in monitoring the strategic, financial, and operating risks and objectives involved, as well as recording and reporting them in accordance with current accounting standards. BDO is a valuable resource for advising on how these complicated instruments can help better manage our client’s business. 


BDO Can Help Mitigate Financial Risk Through: 

  • Hedge Accounting in Compliance with Accounting Standards Codification 815 
  • Modeling and Valuation of Complex Derivative Instruments 
  • Strategic Assistance in Structuring Hedging Transactions 
  • System Design and Process Control Documentation 
  • Compliance with Current Accounting and Disclosure Requirements 
  • Consulting Throughout the Lifecycle of Complex Securities Transactions 

Master Hedge Accounting: Simplify Costs and Enhance Risk Management 

Join Ernie De Lachica, CPA, Managing Director at BDO USA, and Matt Marshall, President of AEGIS CTA, for a discussion on hedge accounting essentials. Discover how hedge accounting has become more accessible, addressing cost and complexity concerns. Understand the importance of upfront documentation and testing for streamlined management and learn about potential pitfalls like insufficient documentation or testing that can affect accounting treatment. Through real examples, explore how hedging aligns with economic realities, such as managing currency exposure in international operations. Key topics include aligning hedge cash flows, reporting frequency, and integrating hedging data into corporate models. Learn actionable guidance on structuring hedge accounting to improve risk management and financial reporting visibility. 

All videos courtesy of AEGIS Hedging.

Navigating the Regulatory Landscape

Ernie De Lachica, CPA, Managing Director at BDO USA, and Matt Marshall, President of AEGIS CTA, discuss hedging strategies and accounting for commodity price volatility. They cover topics like mark-to-market vs. hedge accounting and customizing short and long-term hedges. 

Hedge accounting versus economic hedging

Hedge Accounting vs. Economic Accounting

Discover key strategies for implementing hedge accounting effectively. Ernie and Matt explain its increased accessibility, tackling concerns about cost and complexity. They highlight the importance of upfront documentation and testing for smooth management, with BDO as a reliable advisor in creating successful hedging programs. 

ESG, Emerging Markets, and Beyond

ESG, Emerging Markets, & Beyond

Learn the initial steps for implementing a hedging strategy with Ernie and Matt. They stress quantifying risk and setting clear objectives. Discover how hedge accounting has evolved over 20-25 years, with updates like component hedging and the removal of "ineffectiveness," simplifying and improving accuracy for commodity-based hedges.

Leveraging CTRM for Financial Accuracy

Leveraging CTRM for Financial Accuracy

Ernie and Matt explore the flexibility of short- and long-term hedging strategies, highlighting the need to base decisions on economic objectives rather than accounting constraints. Ernie also discusses interest rate hedging, advising companies to align hedges with their financial outlook and risk management goals.

Stabilizing Commodity Price Volatility

Stabilizing Commodity Price Volatility

Discover the increasing use of hedge accounting across industries as a response to rising market volatility. Ernie and Matt highlight its benefits for sectors with longer lead times, such as automotive and airlines, in enhancing financial stability and investor confidence.

Avoid hedge accounting pitfalls

Avoid Hedge Accounting Pitfalls

Ernie De Lachica and Matt Marshall explain the importance of Commodity Trading Risk Management (CTRM) systems in handling complex financial instruments, including trade capture, position management, and mark-to-market reporting. They address challenges with bespoke financial products, emphasizing the need for clear documentation and strong quantitative testing data to satisfy audit requirements.

How BDO Can Help

Contact us learn more about how BDO can help create and implement a tailored hedging program for your organization.