Reflecting on 2024: A Year of Innovation, Recognition, and Growth at Hedge Effective Advisory
As we reach the close of 2024, we are excited to reflect on a year filled with progress, recognition, and innovation. From launching our disruptive technology to navigating crucial accounting standards, we are thrilled to share our journey and insights as we prepare for the new year.
A Milestone in Thought Leadership
Our founder, Kevin Mitchell, made waves in the accounting world with his book, Hedge Accounting Unlocked: The Essential Guide for CFOs, becoming a best-seller on Amazon in the Accounting Standards category. This achievement underscores Kevin's commitment to simplifying complex financial concepts for today’s CFOs, helping them make confident, informed decisions. Hedge Accounting Unlocked has become a trusted resource, reflecting our company’s core mission of empowering clients with clarity and expertise.
Launch of Hedgehog Software: Leading the Way in Advisory Tech
This year also marked the successful launch of Hedgehog Software, an innovative platform designed to streamline hedge accounting processes for finance teams. With over 25 entities already live on Hedgehog and 70+ unique users, our software sets a new standard in advisory tech, transforming how companies manage financial risks and compliance. Hedgehog’s analytics and reporting capabilities make it a must-have tool for finance teams looking to enhance accuracy, efficiency, and compliance in their hedge accounting practices and streamline their audit process.
Key Developments in Accounting Standards: IFRS 9 and IFRS 18
2024 noted foreseeable updates in accounting standards, which directly impact hedge accounting practices and beyond.
IFRS 9 – Dynamic Interest Rate Hedging:
One of the most notable advancements this year is the expansion within IFRS 9 to accommodate Dynamic Interest Rate Hedging. This change will be a game-changer for risk managers, providing new avenues for managing interest rate risk through hedging. By recognising the dynamic nature of interest rate exposure, the updated standard will allow for more flexibility and relevance in risk management practices—a shift that Hedge Effective Advisory is excited to integrate into our offerings.
IFRS 18 – Presentation and Disclosure in Financial Statements:
The upcoming IFRS 18 standard promises to reshape accounting practices across multiple sectors. Designed to standardise revenue recognition and enhance transparency, IFRS 18 will replace IAS 1.
IFRS 18 aims to bring a fresh, standardised approach to financial reporting. By defining subtotals and incorporating more disclosures on management-defined performance measures, it seeks to improve how companies communicate their performance in financial reports. Our team is already working on preparing our clients for a smooth transition, ensuring they stay ahead of the curve as this new standard takes effect.
What’s Next in 2025
As we look to 2025, we anticipate further innovations in the financial advisory space, particularly in the intersection of technology and accounting standards. We aim to continue pushing boundaries with Hedgehog Software, integrating new features to enhance automation and analytical capabilities. Additionally, we expect ongoing developments in regulatory standards to further define the scope of global hedge accounting and financial reporting practices.
Thank you for being a part of our journey in 2024. We are eager to see what we can achieve together in the coming year. Stay tuned for more insights, updates, and advancements from Hedge Effective Advisory.