DerivActiv, LLC Expands Hedge Accounting Services with FAS 161 Reporting and Compliance

    MINNEAPOLIS, MN, September 28, 2009 /24-7PressRelease/ -- DerivActiv, LLC, a leading provider of independent valuations for fixed income, currency and equity derivatives to governmental entities, healthcare organizations, non-profits, corporations, banks, hedge funds and higher education clients, now can now assist clients with additional disclosures required by FAS 161. FAS 161 requires enhanced disclosures of derivatives that better convey the purpose of the usage and the risks that the derivative is intended to hedge.

"With this expanded requirement, FASB has attempted to provide more transparency in the valuation of an organization's portfolio," states Johan Rosenberg, president of DerivActiv, LLC. "As an independent third party provider of valuations for FAS 161, we are able to meet these requirements in a simple and streamlined fashion."

Since the issuance of the FASB Statement 133 in 1998, the use of derivatives and other hedging activities, as well as their complexity, has increased dramatically. The expanded FAS 161 financial reporting requirements adds another layer of transparency, but also another layer of complexity and reporting requirements for financial and accounting professionals.

The scope of FAS 161 is the same as the scope of FAS 133. As such, it applies to all derivative products and qualifying hedges covered by FAS 133 such as swaps, swaptions, futures contracts, currency forward contracts, and written and purchased options.

"DerivActiv works with auditors, accountants and other financial professionals to make the FAS 157 and FAS 161 reporting easy," said Travis Quast, vice president at DerivActiv. "For clients, finding out their daily valuations is as easy as logging onto our web-based platform."

Given the growing need for independent valuations and transparency in all derivative transactions, DerivActiv will provide FAS 161 testing and compliance for all types of derivatives, including plain vanilla swaps, swaptions, knock-outs, CMS swaps, foreign currency swaps, and other hybrid derivative structures.

The DerivActiv platform is a web-based system that is available around-the-clock and the company has successfully completed a SAS 70 Type II audit performed by a prominent CPA firm. In addition to FAS 157, 161,133 and GASB 53 reporting, the DerivActiv platform can perform trade analytics, prepare curve shock reports, produce threshold alerts and provide cash flow verifications.

For more information visit www.derivactiv.com or e-mail [email protected]

About DerivActiv
DerivActiv, LLC is a leading provider of web-based derivative valuation and other financial monitoring services, serving financial institutions, corporations, non-profits, and municipalities. DerivActiv provides daily valuations of financial products, including equity, currency and fixed income securities and derivatives. DerivActiv is used for FAS 133, 161,157 and GASB 53 compliance in financial statements, board and finance committee reports, and as an internal risk management tool. For more information call 1-866-200-9012, or visit the company's website at www.DerivActiv.com.

DerivActiv, LLC, is a 3rd party provider of indepent valuations of dervatives and swaps for higher education, healthcare, governmental, non-profit and for profit organizations.

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