- Financial information and the Universal Reference Document - Present account analyses and half-yearly and annual accounting and financial reporting, quarterly information and segment reporting. Understand the content of the Reference Document and how to read it.
- Financial instruments and hedging tools - Learn about financial instruments and hedging tools (fair value hedge / cash flow hedge, hedging, credit derivatives, hybrid debt).
- IFRS - International Financial Reporting Standards (IFRS)
- 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
Mastering a complex environment
Target audience
1 day
Prerequisites
You need to be familiar with the various financial instruments, especially derivatives (forwards, swaps, options).
How do hedging instruments work? [FHINST]
Understanding and implementing
Objectives
◗ Implementing hedge accounting in accordance with IFRS 9
◗ Analyze the potential impact on the company's results and financial communication issues
◗ Measuring the challenges in terms of internal control, information systems and procedures
Contents
◗ Understanding the challenges of hedge accounting
- Accounting mismatch between derivative and underlying - Why can the accounting result be volatile?
and why hedging and hedge accounting can help?
- Distinction between management logic and accounting logic
- Presentation of the three types of hedge under IFRS9
- CFH (Cash Flow Hedge)
- FVH (Fair Value Hedge)
- NIH (Net Investment Hedge)
✔ UNDERSTANDING | Comparative table of accounting mechanisms for different
hedging methods
✔ APPLY | Case study: applying hedge accounting to a foreign-currency debt hedged by a cross-currency swap
hedged by a cross currency swap
✔ EVALUATE | Quiz: what do you think... Can a cash flow hedge be applied to an
an uncertain transaction?
◗ Implementing a hedging relationship IFRS 9
- Qualification criteria: documentation, nature of risk, economic link
- Effectiveness tests: measurement, rebalancing, OCI effects of option premiums and swap points
swap points
- Hedges and hedging instruments eligible for hedge accounting,
and impacts
✔ UNDERSTAND | Guided study: efficiency testing and rebalancing mechanism
✔ APPLY | Case study: determining the right treatment for a swap associated
an internal loan
✔ ASSESS | Quiz: what do you think... Does accounting ineffectiveness call into question
the hedge?
◗ Apply accounting treatments according to the type of hedge
- CFH cases: deferred impact on OCI and recycling
- FVH cases: immediate impact on income
- NIH cases: conversion and treatment of net investments
✔ UNDERSTANDING | Illustration: comparative treatment of CFH/FVH/NIH in the financial statements
✔ APPLY | Case study: determining the right treatment for an intra-group hedge
✔ ASSESS | Quiz: what do you think... Can an option be assigned to a cash flow hedge?
flow hedge?
◗ Solving complex cash flow problems
- Net hedging, hedge hedging, hedge restructuring,
portfolio hedging, derivatives stripping...
- Rebalancing, termination, reclassification
- Consistency between documentation, execution and monitoring
✔ EXPERIMENTATE | Case study: arbitrating the continuation or termination of a CFH relationship
relationship that has become ineffective
✔ APPLY | Case study: consequences of terminating hedging relationships
✔ ASSESS | Summary quiz
Why choose this course?
Hedging is the responsibility of the Treasury department. It must also be involved in the accounting treatment of transactions, as the Accounting department does not always have a sufficient understanding of the derivative instruments used, or of the strategy pursued.
This training course enables treasurers to develop and broaden their skills in terms of hedge accounting, including recent changes in standards, and to communicate more effectively with the accounting department.
Teaching and assessment methods
Before: self-assessment quiz
During the session : technical presentation accompanied by numerous case studies and illustrations taken from actual financial statements. Final quiz to validate knowledge acquisition.
Afterwards : the trainer is available to answer any questions relating to the training.
General training | FinHarmony Conseil & Formation
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Price
1 295 € EXCL. TAX
Testimonials
IFRS 9 accounting
IFRS 9 accounting
IFRS 9 accounting
Jonathan C.
Company
Training