Course Code: 811

Duration: 1 day

Level: Intermediate

Fee: $795.00

Instructor: Chad Wekelo

CPE Credits: 7

Prerequisite: A fundamental understanding of GAAP and/or IAS accounting principles and a basic understanding of commonly-used derivatives for hedging purposes (forwards, futures, swaps, and options) is recommended, but not required.

Participants in this one-day seminar will receive the foundation of hedge accounting /accounting for derivatives. Included in this accounting overview will be the fundamentals of achieving hedge accounting under both US GAAP and International Accounting Standards.

This will be an ideal seminar for accountants whose companies are either currently involved in or looking to begin executing these complex structures.

• Overview of Derivative Products and Structures
  • Interest Rate
  • Foreign Exchange
  • Commodity
  • Equity
  • Credit

• Accounting for Derivatives Not in Hedge Relationships
• Hedge Accounting  
  • Overview of Hedge Accounting under FAS 133 & IAS 39 
    
  • Hedge Types; Fair Value, Cash Flow and Net Investment 
    
  • Performing Hedge Effectiveness, Assessment and Measurement 
    
  • Sample Journal Entries for each Hedge Type
    
  • Other Comprehensive Income Accounting and Amortization of Balances
• Fair Value Accounting 
  
  • Measuring Fair Value 
    
  • Credit Considerations 
  • New Accounting Standards; SFAS 157, SFAS 159, and recent FRS
• Differences in International Standards; IAS 39
• Reporting and Disclosure 
  
  • Appearance on Financial Statements; Derivatives in Hedge Relationships 
    
  • Footnote Disclosure Requirements 
    
  • Effect of New SFAS 161 Guidance in 2009
• Operational Challenges 
  
  • Marrying Accounting Policy with Operational Processes 
    
  • Timing Constraints and Implementing New Strategies 
  • Regression Analysis

After completing this course, participants should be familiar with the following:

• Understanding of derivative instruments and basic accounting
• Various means of achieving hedge accounting
• Understand the reporting and disclosure requirements for derivatives
• Discuss the recent guidance issued under US GAAP and IFRS related to fair value accounting and its effect on a derivative portfolio
• Understand the operational challenges of implementing hedge accounting