Scope sheet
finbryn.com
Credit loss and fair value
Hedge accounting documentation and effectiveness support under ASC 815 and IFRS 9
Finbryn provides hedge accounting support for companies with an interest rate swap or FX forward, drafting the ASC 815 designation memo, effectiveness assessments and journal entries for management to adopt (ASU 2025-09, issued November 2025, takes effect for private companies in annual periods beginning after December 15, 2027). Management decides whether to hedge; the auditor tests the documentation.
What is included
- Eligibility check for the simplified hedge accounting approach, condition by condition
- Hedge designation memo with the documentation deadline calendared
- Effectiveness assessment and quarterly refresh schedules
- Cash flow hedge journal entries and the OCI reclassification schedule
- Draft derivative and hedging disclosures for management to review
The process
- 1.
Read the loan agreement and the swap confirmation
We extract index, reset dates, notional, floors and caps, trade date and the counterparty's valuation basis.
- 2.
Test eligibility
Each of the six simplified-approach conditions is marked met or not met, and the swap is placed in a route with the reason.
- 3.
Draft the designation memo and deadline calendar
Risk management objective, hedged item and hedging instrument, with the documentation due date calendared for your controller.
- 4.
Build the schedules
Effectiveness assessment where needed, fair value or settlement value by period, OCI roll-forward and the interest expense reclassification entry.
- 5.
Refresh each quarter
Qualitative verification or re-test, new valuation mark and the entries for the period.
- 6.
Draft the disclosures
Derivative and hedging note and fair value note for management to review and adopt.
Software
Microsoft Excel, QuickBooks Online, NetSuite, Sage Intacct
Pricing
Scoped per hedge from the number of swaps or forwards, the route each one takes and whether quarterly refreshes are included. It runs separately from the monthly tiers on the /us/pricing rate card, and the fee is confirmed in writing before work starts.
Finbryn is a brand of Northlane Solutions Inc., a Delaware corporation.
Reviewed October 2026