Derivatives and Hedge Accounting

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

• o   Interest Rate
• o   Foreign Exchange
• o   Commodity
• o   Equity
• o   Credit

  Accounting for Derivatives Not in Hedge Relationships

  Hedge Accounting

• o   Overview of Hedge Accounting under FAS 133 & IAS 39
• o   Hedge Types; Fair Value, Cash Flow and Net Investment
• o   Performing Hedge Effectiveness, Assessment and Measurement
• o   Sample Journal Entries for each Hedge Type
• o   Other Comprehensive Income Accounting and Amortization of Balances

 Fair Value Accounting

• o   Measuring Fair Value
• o   Credit Considerations
• o   New Accounting Standards; SFAS 157, SFAS 159, and recent FRS

IFRS Convergence Update

• o   FASB Accounting for Financial Instruments Exposure Draft (Specific to Hedging Activities)
• o   IFRS 9 Phase III (IAS 39 Replacement Project)

 Reporting and Disclosure

• o   Appearance on Financial Statements; Derivatives in Hedge Relationships
• o   Footnote Disclosure Requirements
• o   Effect of New SFAS 161 Guidance in 2009

 Operational Challenges

• o   Marrying Accounting Policy with Operational Processes
• o   Timing Constraints and Implementing New Strategies
• o   Regression Analysis

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