“…We engaged Epsilon to be our strategic partner…. I am happy to say that Epsilon met or exceeded our expectations on this project. We successfully completed the RFP project and selected a system that was right for our business…”

FHLB
Chief Financial Officer

Accounting

ACCOUNTING SOFTWARE CONSULTING SERVICES

Over the past six years, we have helped several clients to implement derivative and fixed income accounting in best-of-breed technology platforms. These projects have involved gathering of comprehensive accounting business requirements, implementation, testing and other forms of assistance. Along the way, we have developed extensive experience in the design and implementation of chart of accounts, derivative and hedged instruments charts, and FAS 133 processing.

OUR AREAS OF EXPERTISE ARE:

ASC 815 (FORMERLY FAS 133)

  • Front-to-back FAS 133 solution (read more here)
  • Hedge effectiveness testing and measurements of ineffective hedge results
  • Preparation of hedge designation memos
  • Creation of journal entries for each hedging relationship
  • Retrospective and prospective testing

ASC 820 FAIR VALUE ACCOUNTING / (FORMERLY FAS 157)

  • Classify assets and liabilities based on the fair value hierarchy
  • Apply accepted techniques to measure fair value
  • Determine a non-performance risk
  • Work with auditing firms to ensure that assets and liabilities are correctly classified, as well as confirm that our methodology is adequately consistent with current practices

GASB 53

  • Hedge effectiveness testing of derivatives using one of four testing methods. The four testing methods are consistent critical terms, synthetic instrument, dollar offset, or regression analysis
  • GASB 53 compliance report to be used in financial statements
  • Summary of the testing methodology and assumptions report
  • Fair value calculation of each derivative in a client’s portfolio
  • Footnote disclosure for the audit report
  • Preparation of journal entries for the governmental entity

ASC 320-10-35 (FORMERLY FAS 115)

  • Establish benchmarks for fair value calculations, by using historical trade reporting data from EMMA and yield curves from industry standard sources including MMD, MMA, and Bloomberg
  • Proprietary pricing models for various issued debt, including Build America Bonds, fixed-rate bonds, variable rate demand bonds, and auction rate bonds
  • Value credit enhanced debt, considering fair value accounting standards (Topic 820-10-35, formerly EITF 08-05)

FAS 107

  • Structure each instrument based on the deposit to arrive at the current market value
  • Focus on the term structure of interest rates and use of a discount cash flow

Contact Us

 

 

Epsilon Consulting Services

90 Broad Street, Suite 2003
New York, NY 10004

 

(347) 770-1748

(212) 931-0572

 


 

Careers

 

If you are interested in joining Epsilon’s financial consulting firm in New York City, please visit our Careers page to view jobs and submit a resume for consideration. See our service areas page for specific locations we provide consultations in.