Back
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis sagittis, nunc malesuada viverra fringilla, tellus quam posuere diam, venenatis imperdiet odio neque vel
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis sagittis, nunc malesuada viverra fringilla, tellus quam posuere diam, venenatis imperdiet odio neque vel lect
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis sagittis, nunc malesuada viverra fringilla, tellus quam posuere diam,
Browser Text
* Supports all languages
* Easier to read when using smaller font sizes
* Faster to load
* Slight size variation depending on your site visitor's browser
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis sagittis, nunc malesuada viverra fringilla, tellus quam posuere diam, venenatis imperdiet odio neque vel lectus. Nul
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean dictum orci sed neque. Mauris condimentum ligula nec arcu. Donec commodo rhoncus nulla. Duis sagittis, nunc malesuada viverra fringilla, tellus quam posuere diam, venenatis imperdiet odio neque vel lectus. Nullam at elit. Morbi euis
•Develop foreign exchange exposure management programs that hedge currency risk.
•Implement ASC 830 (FAS 52) and ASC 815 (FAS 133), the accounting standards for foreign exchange, derivative instruments and hedging activities.
•Implement best practices strategies, approaches and processes for hedging foreign currency risk and treasury activities.
•Create comprehensive risk management policies for managing foreign exchange risk (compliant with ASC 815 and ASC 830 requirements) and hedging derivatives.
•Conduct domestic cash management reviews of disbursement, collection, internal controls, and banking activities.
•Design and implement short-term investment and cash forecasting systems.
•Evaluate and optimize capital structure, debt and equity financing alternatives.
Experience
Alan Ross, President of Foreign Exchange Treasury Services Inc., has extensive foreign exchange and treasury experience in addition to a technical and business educational background. The following summarizes his experience:
• Over 10 years of successfully running his own consulting business in foreign exchange exposure management, ASC 830 (FAS 52) and ASC 815 (FAS 133) accounting and hedging, cash management, cash forecasting, short-term investing, and debt financing
• Over 20 years of experience as a senior consultant with Deloitte (a $10 billion global Big 4 accounting and consulting firm) and as Treasurer of Times Mirror Co. (a $3.3 billion multinational Fortune 500 newspaper publishing company)
• Over 15 years of teaching foreign exchange accounting courses for Center for Professional Education (CPE), one of the leading firms that provides continuing educational credits for financial executives.
• A proven track record of generating over $15 million of savings for clients and employers.
• A past speaker at numerous conferences and professional organizations including the Los Angeles Treasurers Club, the National Association of Corporate Treasurers, the Financial Executives Institute, etc.
• A Masters Degree in Business Administration in Finance from the University of Delaware and a Bachelors Degree in Mechanical Engineering from Stanford University.
• Over 5 years as a Navy officer physics instructor at the Naval Nuclear Power School in Bainbridge, Md.
Additional staff and treasury expertise is available when needed.
Foreign Exchange Exposure Management
A comprehensive foreign exchange exposure management program is critical for companies that either currently have significant foreign operations or for those firms that are expanding internationally. There are many steps to establish an effective FX program, including a need to thoroughly understand ASC 830 (FAS 52), the accounting standard for foreign currency translation, and ASC 815 (FAS 133), the accounting standard for derivative instruments and hedging activities. Also, companies need to be prepared for the hedging impacts when the expected convergence of the FASB and IASB occurs.
We carefully guide companies through all of these important steps so that firms can reduce unwanted volatility in their income statement, protect selected cash flows from adverse currency movements, establish exposure limitations and risk controls that comply with Sarbanes-Oxley requirements, record appropriate accounting entries, and keep senior management informed of the progress and successful performance of their FX program.
We understand that companies have different FX needs and requirements. Whether you want ASC 830 (FAS 52) or ASC 815 (FAS 133) training, need assistance with determining your exposures, desire models that help you hedge balance sheet or forecasted exposures, want to investigate why your current FX program is not working correctly, or need a best practices risk management policy or FX program review, we can tailor our level of assistance to your specific requirements based upon your companys size, culture, and management objectives.
Depending upon the amount of help you need, our projects usually address one or more of the following:
1.Collecting and evaluating foreign currency exposure data.
2.Conducting ASC 830 (FAS 52), ASC 815 (FAS 133) and best practices FX exposure management training.
3.Assisting with preparation of a best practices FX risk management policy that is ASC 830 (FAS 52) and ASC 815 (FAS 133) compliant.
4.Developing financial models, strategies, effectiveness testing, documentation, and trade tickets for hedging balance sheet and forcasted exposures.
5.Creating performance measurement reports and benchmarks that will help to measure the success of your FX hedging activities.
We are confident that we provide the most cost-effective services available for establishing a comprehensive foreign exchange program that meets your current and projected needs.
Outsourcing
After implementing a hedging program, some companies still have limited resources to fully analyze exposure, determine hedges, maintain documentation records, prepare accounting entries, and conduct performance measurement analysis. We offer a variety of outsourcing services for the short or long term depending upon each companies needs and requirements.
Treasury Services
Corporate treasury risk management is becoming increasingly important to all domestic and international companies. No longer can a CFO or Treasurer establish treasury systems that just get the job done. Systems and processes need to be optimized in order to achieve best practices results, generate substantial savings, and implement bulletproof controls.
Serving firms ranging in size from small highly entrepreneurial software or high-technology companies to large world-class organizations specializing in manufacturing or telecommunications, we have assisted numerous companies in all areas of treasury management. Some of the specific functional areas of corporate risk management in which we can provide assistance are:
•Collections (in-house, lockbox, ACH, wires)
•Disbursements (AP, payroll, expense reimbursement)
•Bank account structures, relationships, and compensation
•Cash concentration
•Treasury controls
•Cash forecasting
•Investment management
•Debt management
•Capital structure management
•Interest rate risk management
•Risk management policies
Our services usually begin by conducting a 2-5 day review of current treasury activities. We identify in writing potential benefits and quantify estimated cost savings and describe areas for improved controls. A company can chose to implement the highest priority recommendations if it has the time and resources or can use our services to focus on the changes that treasury feels are most important.
Service fees can be charged on an hourly, project or percentage-of-improvement basis.
Frequently Asked Questions
1. How long do your FX projects take to complete?
A typical full comprehensive project usually takes between 3-5 weeks to complete but varies somewhat depending upon the number for foreign subsidiaries a company has and how long it takes a company to gather FX exposure information. This assumes approximately 5-6 face-to-face meetings, each of which lasts around 2-3 hours. This timeframe can be reduced if the company wants me to expedite the project. The project can also take longer if the company has other priorities that cause us to delay some of our meetings.
I also have developed abbreviated or "light" projects that can take under two weeks when a company does not want or need a full comprehensive approach.
2. How much does your comprehensive FX project cost?
My comprehensive project costs about one-third to one-half of what most Big 4 or other larger FX consultant firms charge for comparable services. I have one of the lowest cost operations of any provider and therefore can pass this saving on to my customers. I usually charge a flat fee for a project but can charge on an hourly basis if a company desires. The overall cost to a client is usually lower on a project rather than an hourly basis.
3. What are the main goals of an FX project?
The main goals are usually to mitigate FX risks by reducing volatility from fluctuating exchange rates that adversely impact a company's cash flows, income statements, and operating margins. It is also very important that customers get the most favorable accounting treatments for their hedging transactions.
4. What type of assistance does a client get to ensure that their newly implemented FX hedging program is effective?
I encourage my clients to test their FX program by running a phantom hedging program retroactively for 30 or 60 days. I can then provide a review of their hedging results to ensure they are on the right track. I also provide performance measurement reports to help customers evaluate their hedge effectiveness. Finally, I can also provide outsourcing assistance for a few months or longer if a client wants.
Please contact us using any of the following:
Phone: 714-281-3984
Fax: Available upon request
E-mail: alross1_sbcglobal.net
Mail:
Alan L. Ross, President
Foreign Exchange Treasury Services Inc.
461 S. Canyon Ridge Dr.
Anaheim, CA 92807
