The problem with
implementing FAS 133 has always been the disconnect
between the front and back office – those doing the
trades and those making the accounting entries. The
effectiveness test provides the intellectual (and in
systems logic, the actual) linkage between the two.
However it is only effective if handled
correctly.
This two-part
FAS133.com Special Report addresses the issue of how to
assess effectiveness in a way that’s consistent with
finance theory and risk management objectives. Part
1 addresses the issues of FAS 133 effectiveness
requirements, when effectiveness matters and why. Part 2
outlines the available methodologies and alternative
methodologies, addressing the issue of how to choose the
most appropriate test. 
