- 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).
- 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
Fundamentals
Target audience
- Accountants
- Consolidators
- Chartered accountants
- Finance, consolidation and accounting managers
1 day
Prerequisites
No prior knowledge is required
Objectives
◗ Understand how the main financial derivatives used in business (forwards, swaps, options, etc.) work and how they are used.
◗ Estimate the value of the main derivative instruments using appropriate methods.
◗ Apply IFRS 9 to simple hedging transactions.
◗ Record these transactions in the financial statements.
Training program
◗ Introduction to derivatives
– Definition: financial instruments linked to an underlying asset (interest rates, foreign exchange rates, indices, etc.)
– Characteristics: no significant initial investment; settlement occurs in the future
– IFRS Treatment: recognized at fair value through profit or loss (excluding hedging)
✔ UNDERSTAND | Illustration: diagram of the three IFRS criteria for a derivative
✔ APPLY | Quiz: identifying the nature and accounting treatment of derivatives
◗ The forward sale or purchase of foreign currency (FX forward)
– A firm commitment at a fixed price for a forward purchase or sale of foreign currency, used for hedging
– Swap points
– Valuation of anFX forward
✔ UNDERSTAND | Illustration: How an FX forward works
✔ APPLY | Case study: Valuation of a forward
✔ APPLY | Practical example: Accounting treatment of a forward contract cancellation
◗ Interest rate swap
– Exchange of future cash flows at a fixed rate versus a variable rate
– Main use: converting variable-rate debt into fixed-rate debt
– Valuation by discounting cash flows based on the yield curve
✔ UNDERSTAND | Diagram of an IRS and contract example
✔ APPLY | Case study: Valuation of a swap using a yield curve
◗ Options and associated strategies
– Asymmetric contract: right (call/put) for the buyer, obligation for the seller
– Valuation: sum of intrinsic value and time value
– Complex strategies: tunnels, out-of-the-money options, partial hedging
✔ UNDERSTAND | Graphical representation of payoff profiles
✔ APPLY | Case study: implementing a hedge using options
◗ The three IFRS hedge types
– Fair value (FVH), cash flow (CFH), and net investment (NIH) hedges
– Requirements: documentation, effectiveness, and a link to an identified risk
– Accounting consequences: income or OCI depending on the type of hedge
✔ UNDERSTAND | Comparison of FVH, CFH, and NIH and diagram of a firm commitment
✔ UNDERSTAND | NIH applied to a foreign subsidiary
✔ APPLY | Case study: Implementing a CFH hedge on an interest rate swap
Why choose this course?
This training course begins by providing an economic overview of derivatives: how they work and what they hedge. It then addresses their accounting treatment. This practical and intensive training course provides the keys needed to understand the hedging strategies implemented within the company and to apply the provisions of IFRS 9 in practice. It facilitates effective communication between Accounting/Consolidation and Treasury.
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
1 295 € EXCL. TAX
Testimonials
ifrs 9 training
ifrs 9 training
ifrs 9 training
Jonathan C.
Company
Training