This course provides CPAs with a comprehensive understanding of derivatives and hedging in financial management. Participants will explore the fundamentals of derivatives, their strategic role in risk management, and the differences between hedge accounting and traditional accounting methods. The course specifically covers fair value, cash flow, and net investment hedges, and discusses their practical applications. This course also addresses hedge accounting, including designation, documentation, and effectiveness testing.
Learning Objectives
- Identify derivatives' strategic role in financial risk management
- Recognize differences between hedge accounting and traditional methods
- Distinguish fair value, cash flow, and net investment hedges in practice
- Determine key steps in hedge accounting: designation, documentation, and effectiveness testing
- Diffenentiate how fair value, cash flow, and net investment hedges mitigate financial risks
Major Topics
- Common types of derivatives
- Hedging vs. Speculation
- Market risk, credit risk, liquidity risk
