User Login

Error
Home Courses Course Calendar Teaching Team About Us Resources Contact
Close
Course Calendar Course Calendar

Accounting for Derivatives in Practice under IFRS9

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 a 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: Macrohedging (under IAS 39)

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

Other topics

  • Hedging credit risk
  • Hybrid instruments

Click here to check dates and to register



Keep me updated about this course

Submit