Accounting for derivatives and hedges is often perceived as one of the most complex areas in accounting, presenting a significant challenge to professionals in the field. This course aims to demystify this challenging subject by starting with a comprehensive overview of derivative instruments and their functionalities. It then seamlessly transitions into the essentials of accounting for these financial instruments. Covering a range of topics from the nature of risk and hedging to risk management, the course provides clear explanations on handling derivatives and the major types of hedges. Participants will find answers to common questions such as managing interest rate and foreign exchange risks, understanding the key features of futures, options, swaps, and the intricacies of other comprehensive income. Additionally, the course covers the critical documentation required for hedging activities and provides insights into assessing hedge effectiveness. This course is designed for those seeking to gain a strong foothold in understanding and accounting for derivatives and hedges, turning a complex topic into manageable, practical knowledge.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify the main aspects of foreign exchange and interest rate risk along with the methods available to mitigate them.
Chapter 2
Note the accounting for derivative speculation and the classifications for hedges and investments.
Identify the contents of other comprehensive income.
Recognize the methods used to measure hedge effectiveness.
Major Topics
Derivatives
Hedge
Foreign Exchange Risk management Alternatives
Interest Rate Risk Management Alternatives
Credit Risk Management Alternatives
Foreign Exchange Hedging Instruments
Interest Rate Hedging Instruments
Credit Risk Hedging Instruments
Derivative Acconting
Hedge Accounting
Embedded Derivatives
Hedging Controls
Unhedged Foreign Exchange Gains and Losses
Derivative & Hedging Disclosures
