- Parent company financial statements under French GAAP - Accounting production: How to produce parent company financial statements under French GAAP
- Financial statements and appendices - Balance sheet, income statement, cash flow statement, statement of changes in equity, ICOs, appendices
- Financial instruments and hedging tools - Learn about financial instruments and hedging tools (fair value hedge / cash flow hedge, hedging, credit derivatives, hybrid debt).
- Financial risks: counterparty, liquidity, interest rate, foreign exchange, equity - Analysis, valuation, risk mapping and hedging strategy: - Counterparty risk: financial analysis and mastering rating practices (internal, external) - Liquidity risk: ALM and group cash flow forecasts - Interest-rate risk: TF and TV loans, bond issues - Foreign exchange risk: exports, imports, hedging - Equity risk: dividends, share acquisitions and disposals, dealing room) - Project & (dis)investment risk Master the identification and valuation of financial and non-financial risks
- Securities and financial markets - Notions of cost of money, liquidity, inflation, capitalization, discounting, interest calculations, actuarial calculations
Improvement
Target audience
- Accountants
- Consolidators
- Chartered accountants, Statutory Auditors
- Finance, consolidation and accounting managers
- Treasurers
2 day
Futures training
Prerequisites
No prior knowledge is required
Objectives
◗ Understand the main financial derivatives used in business (forwards, swaps, options, etc.) and their applications.
◗ Define the appropriate strategy (hedging, optimization, speculation) based on the type of risk and the financial objective.
◗ Apply the rules set forth in ANC Regulation 2015-05 to the accounting treatment of derivatives and hedging transactions.
Training program
◗ Derivative financial instruments
– Hedging instruments: forwards, swaps, cross-currency swaps, options
– Fair value measurement: intrinsic value + time value (options)
– Specifics related to commodities: pricing, delivery, liquidity
✔ UNDERSTAND | Illustration: How derivatives work, with numerical examples
✔ UNDERSTAND | Video: How an interest rate swap works to hedge a variable-rate debt
✔ APPLY | Practical cases: Valuation of a forward contract, hedging a purchase with an option
◗ Hedging strategies
– Objective: Balancing the identified risk against the cost of hedging
– Choice of structure: firm, optional, tunnel, or synthetic hedging
– Trade-off between security and economic performance
✔ UNDERSTAND | Strategy matrix: type of risk/type of instrument
◗ Accounting treatment in accordance with ANC Regulation 2015-05
– Three methods of accounting for derivatives: hedging, risk-free optimization, open position
– Definition of criteria for each method
– Disclosure requirements in the notes to the financial statements based on the use of the derivative
✔ UNDERSTAND | Comparative analysis: current practices vs. May 2015 regulations
✔ APPLY | Case study: accounting for a foreign currency purchase using a hedging derivative
◗ Possible uses for derivatives
– Hedging: transaction-backed derivative, symmetrical recognition in income
– Optimization: no hedged risk but actual exposure to the underlying asset, equivalent accounting + note to the financial statements
– Speculation: isolated position, provision for losses, no recognition of unrealized gains
– Treatment of the carry and time value
✔ UNDERSTAND | Analysis grid for use cases and balance sheet impacts
✔ APPLY | Case study: continuation and in-depth analysis of the previous case (hedging)
✔ EVALUATE | Quick questions: Which accounting treatment applies in which situation?
◗ Implementation of a hedging relationship
– Mandatory documentation upon implementation
– Hedging of an individual item, a group, or a probable event is possible
– Recognition of internal hedges if conditions are met
✔ UNDERSTAND | Analysis of the documentation criteria for a valid hedging relationship
✔ APPLY | Case study: hedging relationship related to an uncertain event
◗ Break in hedging relationship
– Identifying cases of termination: expiration of the derivative, change in the hedged item
– Accounting consequences: reclassification of the derivative and recognition of gain or loss (immediate or deferred)
✔ UNDERSTAND | Table of hedging termination scenarios
✔ APPLY | Case study: Early termination of a hedging relationship
Why choose this course?
ANC Regulation 2015-05 specifies the treatment of derivative financial instruments and hedging transactions, without imposing all the requirements of IFRS. This practical and intensive training course provides an overview of the main hedging instruments and explains how to account for transactions in accordance with the ANC Regulation, in both individual and consolidated financial statements.
Teaching and assessment methods
Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.
Teaching Methods: A variety of methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.
Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.
During the training: a mix of theoretical concepts and examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.
Monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.
Price
2,250 EXCL. TAX
Testimonials
Futures training
Futures training
Futures training
Jonathan C.
Company
Training