Financial Instruments - Hedge Accounting

Pricing

Cost for BPP PD Members: £239 + VAT + 3 CPD Hours
(£299 + VAT for non BPP PD Members) Click Here for details of our membership scheme.)

Course level

Developmental

Delegates

This half day course is suitable for those working in the financial sector or any other business sector with considerable exposure to financial instruments and wanting to gain a better understanding of the complex area of hedge accounting.

Course content

Many entities use derivative financial instruments to hedge their exposure to different risks (for example interest rate risk, foreign exchange risk, etc.).

IAS 39 (Financial Instrument: Recognition and Measurement) covers the accounting for derivatives under international accounting standards.

Under IAS 39 all derivatives are marked-to-market with changes in the mark-to-market being taken to the profit and loss account. This accounting treatment would therefore result in a significant amount of profit and loss volatility for many entities. This profit or loss volatility can be mitigated by invoking the optional rules of hedge accounting under IAS 39. Only a brief overview of hedge accounting under IFRS 9 is included as the new standard has yet to be approved for use within the EU and is not mandatory under ‘full’ IFRS until 2020. See Financial Instruments – IFRS 9 & the Replacement of IAS 39 for fuller details of IFRS 9.

Learning outcomes include obtaining a greater understanding of:

  • Mechanics of hedge accounting
  • Hedged items
  • Hedging instruments
  • Categories of hedge
  • Examples of hedges
  • Documentation
  • Hedge effectiveness
  • Discontinuing hedge accounting

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."


Course Dates

Location Dates Time Availability  
London 18 Nov 2020 2:00 PM - 5:15 PM  Spaces Book Now

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