- 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
Improvement
Target audience
- Accountants
- Consolidators
- Chartered accountants, Statutory Auditors
- Finance, consolidation and accounting managers
- Treasurers
1 day
Prerequisites
It is necessary to be familiar with common derivatives and the principles of hedge accounting, or to have completed the “Derivatives and Hedging under IFRS – Level 1” [FHIFDC] course .
Objectives
◗ Leverage the characteristics of certain complex derivatives (such as compound instruments and barrier instruments) to effectively incorporate them into hedge accounting.
◗ Apply advanced accounting treatments for hedges in accordance with IFRS 9.
◗ Analyze the impact of these transactions on the financial statements, including the notes to the financial statements.
Training program
◗ Hedge accounting constraints and requirements
– Overview of hedging relationships under IFRS 9 (cash flow hedge, fair value hedge, and net investment hedge)
– Four pillars of a valid hedging relationship: hedged item, hedging instrument, documentation, and effectiveness
– Mandatory documentation upon initial designation
– Risk management objective and demonstrable prospective effectiveness
– Possibility of rebalancing without disruption if the objective remains unchanged
✔ UNDERSTAND | Illustration: “critical terms match” diagram and IAS 39/IFRS comparison
✔ APPLY | Case study: hedging a foreign currency debt (debt in $ + CCS)
◗ Accounting treatment of NIH coverage
– Definition: hedging of a net investment in a foreign subsidiary
– Accounting treatment similar to CFH, without reclassification of income except in the event of a divestiture
– Special case often confused with NIH: long-term intra-group loans treated as quasi-equity
✔ UNDERSTAND | Illustration: parent/subsidiary diagram and treatment of intercompany loans
✔ APPLY | Case study: NIH hedging with a FX forward – treatment of swap points
◗ Break in hedging relationship
– Reasons for termination: maturity of the instrument, ineffectiveness, change in the hedged item
– Consequences: revaluation frozen at FVH, gradual (or non-gradual) reclassification toCFH
– Effectiveness history retained in all cases
✔ UNDERSTAND | Comparative table of the effects of a de-qualification of hedging in FVH and CFH
✔ APPLY | Case study: analysis of the impacts of the termination of a hedging relationship on income
◗ Implementation of a pre-hedge
– Definition: a hedge entered into before the hedged item is recognized (e.g., hedging the interest rate risk of a debt to beissued)
– Instruments used: swaps, swaptions, combined options
✔ UNDERSTAND | Illustration: timeline of a pre-hedging relationship
✔ APPLY | Case study: pre-hedging a debt to be issued
Why choose this course?
This training course provides an in-depth understanding of hedge accounting under IFRS 9, as applied to frequent transactions with specific treatments (pre-hedging, breaking the hedge, etc.), as well as the handling of complex instruments (collars, compound or barrier instruments).
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
Derivatives training
Training
Training
Jonathan C.
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Training