Commodity XL for Fair Value Disclosure provides real-time, integrated tools to measure and manage fair value level setting; it meets strict disclosure requirements and provides financial statement transparency required for regulator and shareholder confidence.
WESTPORT, Conn. (PRWEB) June 19, 2008
"FAS 157 came into effect in the fourth quarter last year and requires public companies to classify commodity derivatives into three levels, disclosing the quality of the fair market measures; starting with observable traded market price inputs and proceeding to unobservable inputs and Black box methodologies. The fundamental change FAS 157 introduces is that the mark-to-model techniques and measures of hard to value assets must be transparent to stakeholders and that all market values be discounted by credit risk," said Elie Zabal, Triple Point's senior vice president of treasury management and regulatory compliance solutions. "Commodity XL for Fair Value Disclosure provides real-time, integrated tools to measure and manage fair value level setting; it meets strict disclosure requirements and provides financial statement transparency required for regulator and shareholder confidence."
Commodity XL for Fair Value Disclosure has extensive functionality for FAS 157 and IFRS 7 compliance. It provides robust tools to define, measure and manage fair value levels. Commodity XL for Fair Value Disclosure employs a consistent, rules-based framework for calculating fair value, discounting by credit risk and assigning levels. In addition, the solution delivers on-going, in-depth month-to-month analysis of fair value levels and transitions from one level to another.
"Organizations that fail to produce consistent and transparent disclosures of all three fair value levels required by FAS 157, run the risk that regulators, investors, counterparties and stakeholders will lose faith in reported financials," said Mike Ravo, Triple Point's vice president of industry solutions. "By deploying Commodity XL for Fair Value Disclosure, organizations ensure all level assignments and mark-to-model valuations use consistent and auditable methods."
Commodity XL for Fair Value Disclosure is the second product released in the Triple Point Treasury Management and Regulatory Compliance solution suite. Commodity XL for Hedge Accounting™, the first product announced, is a dynamic software hedge accounting engine that supports FAS 133 and IAS 39 compliance, enabling firms to balance between optimal economic benefit, risk management and stable financial statements. It is the industry's most advanced and most effective solution to profitably account for hedging and risk management activities. From market pricing and effectiveness testing to documentation and flexible report generation, the Triple Point solution enables organizations to comply with FAS 133, IAS 39, SAS 133, CICA 3865 and AASB 139 hedge accounting standards.
Commodity XL for Fair Value Disclosure and Commodity XL for Hedge Accounting are based on mature, well-tested software solutions Triple Point obtained in its acquisition of INSSINC. INSSINC, now a division of Triple Point, serves more than sixty leading energy and commodity industry leaders throughout North America and Europe including such notable companies as PacificCorp, TransAlta, TransCanada, SUEZ Energy, Southern Company, Ameren Energy, PPL Corporation (Pennsylvania Power & Light), Scottish Power, The J.M. Smucker Company and Campbell Soup Company.
About Triple Point Technology
Triple Point Technology is the established leader in cross-industry commodity and energy trading, risk management, scheduling and logistics software solutions. Triple Point Commodity XL™ profitably integrates physical and financial markets from the front-to-back office on a real-time, next-generation platform for all commodities, including power, oil, gas, coal, base and precious metals, agricultural products, biofuels and freight. Triple Point's award-winning commodity and energy trading software solutions are used by more than 25 percent of both Global 500 commodity trading companies and Global 500 energy companies. Founded in 1993 and headquartered in Westport, Connecticut, USA, Triple Point serves clients from nine development and support centers located around the globe. More information is available at http://www.tpt.com.