Oracle, a business software and hardware systems company, has announced the release of Oracle Financial Services Hedge Management and IFRS Valuations to help financial institutions easily comply with regulatory requirements for International Financial Reporting Standards (IFRS).

Emerging regulations, such as The Dodd-Frank Act, Basel III, and the adoption of standards defined in IFRS mandate tighter alignment between the controller, treasury and risk operations. As part of the Oracle Financial Services Analytical Applications suite that shares a common account-level relational data model and application architecture, Oracle Financial Services Hedge Management and IFRS Valuations facilitates such alignment.

Oracle Financial Services Hedge Management and IFRS Valuations helps financial institutions address regulatory requirements for IFRS by classifying and computing the fair valuation of financial instruments, calculating effective interest rate, and computing and monitoring the effectiveness of hedging relationships.

It also creates and tune hedging strategies for optimal capital utilization. Financial services firms are able to monitor retrospective hedge effectiveness, apply what-if and stress scenarios to test prospective hedge effectiveness and readily handle hedge derecognition processes. They are also able to leverage a common computation engine for consistent valuations between treasury and accounting, and utilize common data quality and reconciliation processes across finance and risk applications.