Payables and Cash Management - EBS (MOSC)

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R12 hedge effectiveness testing

edited Aug 20, 2021 7:35AM in Payables and Cash Management - EBS (MOSC) Question

Hello

As far as I know Oracle Treasury has the following options for Hedge effectiviness testing.

In my view either Cumulative Offset or Period Offset are like the method Dollar Offset according FAS 133.

Please Advise

Regards

Cumulative Offset: The program will add up all the hedge instrument gains/losses since the hedge inception and compare them to all the hedge item losses/gains. If the percentage offset falls within the predefined tolerance level, the hedge will pass the test and the derivative gains/losses will be split into effective and ineffective parts. If the percentage offset does not fall within the predefined tolerance level, the hedge will fail the test and the derivative gains/losses will be deemed ineffective.

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