A fortune 500 unregulated utility company in the power generation and natural gas delivery industry required assistance to comply with quarterly testing of hedge (in)effectiveness in accordance with FAS 133 “ Accounting for Derivative Instruments and Hedging Activities ”.

 

The company needed to both satisfy the disclosure requirements for ineffectiveness of hedges and their effect on ‘Other Comprehensive Income’ and to develop and document testing procedures on how the ineffectiveness was arrived at and substantiated.

 

The procedures were for inclusion for Sarbanes-Oxley compliance.

 

Both requirements were met within the company’s filing schedule and to internal and external satisfaction.