- 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
Understanding and implementing
Target audience
- Accountants
- Consolidators
- Chartered accountants, Statutory Auditors
- Finance, consolidation and accounting managers
- Treasurers
2 day
Futures training
Prerequisites
No pre-requisites are required for this course, which explains how hedging derivatives work and how to value them before they are booked.
People who usually handle the main derivatives do not need to attend Day 1 of this course.
To register for the second day only, please contact us (price: €1175 excl. VAT).
Objectives
◗ Understand how the main derivative financial instruments used in business operate and how to use them (forwards, swaps, options, etc.).
◗ Identify hedging, optimization and speculative strategies
◗ Apply the accounting treatment of these transactions under French accounting standards
Training program
◗ Derivative financial instruments
- Hedging tools: forwards, swaps, cross currency swaps, options
- Fair value valuation: intrinsic value + time value (options)
- Commodity specificities: quotation, delivery, liquidity
✔ UNDERSTAND | Illustration: how derivatives work with numerical examples
✔ UNDERSTAND | Video: how does an interest-rate swap work to hedge variable-rate debt?
variable-rate debt?
✔ APPLY | Case study: valuing a forward, hedging a purchase with an option
◗ Hedging strategies
- Objective: neutralization of identified risk vs. cost of hedging
- Choice of structure: firm, optional, tunnel or synthetic hedging
- Trade-off between security and economic performance
✔ UNDERSTANDING | Strategy matrix: risk type/instrument type
◗ Accounting treatment in accordance with ANC regulation 2015-05
- Three derivative treatments: hedging, risk-free optimization, open position
- Definition of criteria for each treatment
- Disclosure requirements depending on derivative use
✔ UNDERSTANDING | Comparative analysis: current practices vs. regulations 2015-05
✔ APPLY | Case study: processing a foreign currency purchase with a hedging derivative
◗ Possible uses for derivatives
- Hedging: derivative backed by a transaction, symmetrical treatment in income statement
- Optimization: no hedged risk, but real backing for the underlying, equivalent accounting
and disclosure in the notes
- Speculation: isolated position, provision for losses, no recognition of unrealized gains
- Treatment of premiums, discounts and time value adjustments
✔ UNDERSTANDING | Use case analysis grid and balance sheet impacts
✔ APPLY | Case study: continuation and deepening of the previous case study
(hedging a foreign currency purchase)
✔ EVALUATE | Quick questions: which accounting treatment in which situation?
◗ Implementation of a hedging relationship
- Mandatory documentation from the outset
- Possible coverage of an isolated item, a group or a probable event
- Recognition of internal guarantees if conditions met
✔ UNDERSTAND | Analysis of the criteria for documenting a valid relationship
✔ APPLY | Case study: hedging relationship linked to an uncertain event
◗ Break in hedging relationship
- Identification of termination events: end of derivative, change in hedged item
- Accounting consequences: reclassification of the derivative and treatment of income (immediate or deferred)
✔ UNDERSTANDING | Table of hedge termination scenarios
✔ APPLY | Case study: early termination of a hedging relationship
Why choose this course?
ANC regulation 2015-05 came into force in 2017. It has significantly modified the treatment of derivative financial instruments and hedging transactions, without imposing all the constraints of IFRS. This intensive practical training course provides an update on the main hedging instruments and how to account for transactions in accordance with the ANC regulation, in both individual and consolidated financial statements.
Teaching and assessment methods
Before : self-assessment quiz
During the session: : technical developments accompanied by illustrations drawn from real-life situations. Numerous case studies (including accounting diagrams) and interactive quizzes help to validate knowledge acquisition.
Afterwards : documentation.
The trainer is available to answer any questions relating to the training.
General training | FinHarmony Conseil & Formation
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Price
2,250 EXCL. TAX
Testimonials
Futures training
Futures training
Futures training
Jonathan C.
Company
Training