Accounting for Derivatives in Practice under IFRS9 Course

London Financial Studies

Program Description

Accounting for Derivatives in Practice under IFRS9 Course

London Financial Studies

This programme will give you a deep understanding of derivatives accounting and the application of hedge accounting for the interest rate, inflation and FX markets. Learning is based on an intense use of real cases, applying IFRS9 step-by-step. The new requirements are contrasted with IAS 39 where needed, with detailed discussions on the implementation of new rules.

Case studies and workshops simulate real-life client discussions and cover the decision-making, documentation requirements, hedge effectiveness assessment and the accounting entries of a hedging strategy during its life.

All participants will receive a copy of Juan Ramirez's book "Accounting for Derivatives: Advanced Hedging under IFRS 9", published by Wiley Finance.

Date: 22nd - 23rd October 2018

Venue: Central London and remotely via LFS LiveLFS Live

Fee: £1345 per day

You might be eligible for preferential rates. Please contact us to check if your company is a member of the LFS Global Client Programme.


Who The Course is For

  • Derivatives structures and salespeople
  • Derivatives accountants
  • Financial managers
  • Treasurers
  • Derivatives middle-office
  • Stock analysts


Prior Knowledge

  • Basic understanding of financial statements
  • Derivatives instruments: forwards, calls, puts and interest rate swaps (basic level)


Course Outline

Day One

Accounting for FX derivatives

Conceptual Framework

  • Introduction to IFRS 9
  • Interaction with other IFRS standards

Introduction to FX transactions

  • Types of FX exposures
  • Functional currency vs. presentation currency
  • Chronology of an FX transaction

Workshop: Philips - Hedging a highly expected foreign sale

  • Identification of the FX exposure
  • Applying hedge accounting - hedging with an FX forward
  • Applying hedge accounting - hedging with an option
  • Applying hedge accounting - hedging with a tunnel
  • Applying hedge accounting - hedging with a knock-in forward

Case Study: Hedging a highly expected foreign purchase

  • Identification of the FX exposure
  • Applying hedge accounting - hedging with an FX forward

Case Study: Net investment hedge – France Telecom and Everything Everywhere

  • Translation of foreign operations
  • Identification of the FX exposure
  • Applying hedge accounting - hedging with a cross-currency swap
  • Applying hedge accounting - hedging with foreign debt

Short case studies: Special FX situations

  • Intercompany FX hedging hedge accounting challenges
  • Dual hedging using a single derivative

Day Two

Accounting for Interest Rate Derivatives

Workshop: Hedging a floating rate liability – Cash flow hedge

  • Financial assets classification under IFRS 9. Comparison to IAS 39
  • Financial liabilities classification and the fair value option
  • Accounting for floating rate bonds – the effective interest rate
  • Applying cash flow hedge for a fixed to floating interest rate swap
  • Hedge accounting documentation and hedge effectiveness assessments
  • Accounting entries

Workshop: Hedging a future issuance of a fixed rate liability

  • Case background and hedging strategy
  • Hedge accounting documentation and hedge effectiveness assessments
  • Accounting entries

Workshop: Hedging a fixed rate liability

  • Accounting for fixed rate bonds
  • Applying fair value hedge for a floating to fixed interest rate swap
  • Hedge accounting documentation and hedge effectiveness assessments
  • Accounting entries

Case study: Hedging inflation risk

  • IAS 39 vs. IFRS 9 guidelines on inflation risk hedging
  • The challenge of hedging inflation-linked revenues

Case study: Macro-hedging (under IAS 39)

  • Explanation of the objectives
  • Steps to its application and its weaknesses under IAS 39
  • IFRS 9 macro-hedging project

Other topics

  • Hedging credit risk
  • Hybrid instruments
This school offers programs in:
  • English


Last updated October 25, 2018
Duration & Price
This course is
Online
Campus based
Start Date
Start date
Apr. 8, 2019
Duration
Duration
2 days
Full time
Price
Price
2,690 GBP
£1345 per day. You might be eligible for preferential rates. Please contact us to check if your company is a member of the LFS Global Client Programme.
Information
Deadline
Locations
United Kingdom - London, England
Start date : Apr. 8, 2019
Application deadline Request Info
End date Apr. 9, 2019
Dates
Apr. 8, 2019
United Kingdom - London, England
Application deadline Request Info
End date Apr. 9, 2019
Videos

LFS Webcast series - Hedge Accounting under IFRS 9