Valuation & Hedge Accounting Services

Advising on evolving practice for financial instruments

Financial Instruments accounting continues to respond and adapt to the changing circumstances of the global economy, including the effects of market uncertainties as well as issues that affect corporates and banks alike.

Our team of experienced valuations consultants can support you and help you tackle practical issues that usually arise in many areas in association with financial instruments and derivatives, which are generally related to measuring and accounting for derivatives and hedge accounting, as well as disclosures and necessary calculations for financial instruments.

In particular, the current period of extreme market volatility highlights the importance of making relevant and reliable valuations available.

Given the complexity of the topics, responding to these issues requires appropriate expertise. KPMG has extensive knowledge and experience advising clients on financial instruments matters, including managing hedge accounting programs and assisting with valuation services.

Our global reach means we're constantly following new developments in every region, and we can show you how the current market conditions will impact existing frameworks and advise on the implementation of new ones.

Our services

How can KPMG help?

Financial Instruments Valuations

Providing independent valuations of financial instruments, including OTC derivatives, and virtual power purchase agreements.
Performing risk valuation adjustments, such as credit and debit value adjustments (CVA/DVA), to accurately reflect counterparty risks.
Developing tailored valuation models for complex instruments, customized to align with the unique characteristics of your products.

Hedge Accounting

Applying hedge accounting in compliance with accounting standards, ensuring all disclosure requirements are met.
Designing and reviewing hedge accounting strategies, including the preparation of hedge documentation and development of an effectiveness testing framework.
Implementing complex hedge accounting strategies, such as macro fair value hedging, and addressing comprehensive hedge accounting requirements

Get in touch

We put value at the heart of everything we do. We understand the needs of our clients and endeavour to help them respond to the evolving market environment and business needs. Our team of experienced subject matter experts are focused on delivering quality outcomes for our clients.

Our access to KPMG’s global network of professionals ensure that we can draw on their experience to have the right support, advice and services you need.

To find out more about how KPMG can help you focus on what’s next for your treasury, please get in touch with Jorge Revilla or Francisco Jiminez of our Financial Instruments team. We’d be delighted to hear from you.