This course provides CPAs with a comprehensive understanding of derivativesand hedgingin financial management. Participants will explore the fundamentals of derivatives, their strategic role in risk management, and the differences between hedge accountingand traditional accountingmethods. 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 effectivenesstesting.
Learning Objectives
Upon successful completion of this course, participants will be able to:
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
Differentiate how fair value, cash flow, and net investment hedges mitigate financial risks
Major Topics
Understanding Derivatives and Hedge Accounting
Types of Derivatives
Derivative Markets
Risk Management Purposes
Hedge Accounting
Types of Transactions
Types of Hedges
