- 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
Mastering a complex environment
Target audience
- Bankers / Account managers
- Accountants
- Consolidators
- Chartered accountants
- Finance, consolidation and accounting managers
2 day
IFRS currency hedging training
Prerequisites
No prior knowledge is required.
Objectives
◗ Identify the main currency hedging instruments(forwards, swaps, options, etc.)
◗ Define the main strategies for hedging risks that are certain (signed contract) or uncertain (budget, call for tenders, etc.).
◗ Applying hedge accounting under IFRS
Training program
◗ Types of derivatives
- Main hedging tools: forwards, swaps, cross currency swaps, options
- Operation and valuation of the main foreign exchange instruments
- Notions of spot, bid/ask spread, backwardation or swap points
- Derivative stripping or separation of intrinsic value and time value
options?
✔ UNDERSTANDING | Illustration: valuation diagram for the main hedging instruments
hedging instruments
✔ APPLY | Case study: valuation of an FX forward
✔ APPLY | Quiz on the functioning of each of the main currency
instruments
◗ Hedging foreign exchange derivatives
- Simple hedges, net hedges or hedges of aggregated positions
- Firm commitment hedges: the choice between CFH and FVH
- Contingent hedges (e.g. Coface-type hedges)
- Hedging of a partial risk authorized by IFRS9 (e.g.: hedging of the barrel
in kerosene procurement)
✔ UNDERSTANDING | The different hedging strategies depending on the
instruments used
✔ UNDERSTAND | Illustration: hedging forecasted supplies
✔ APPLY | Case study: hedging an uncertain risk with an option
◗ Accounting for hedging relationships
- Documentation required from the outset of the relationship
- Revalidation at each closing with prospective effectiveness test only
- Accounting treatment of time value and swap points in OCI
✔ UNDERSTANDING | CFH/FVH analysis grid and IFRS9 treatment diagram
✔ APPLY | Case study: treatment of the time value of a CFH option
◗ Specific cases and in-depth studies
- NIH hedging: hedging of net investments in foreign currencies with storage in OCI
(translation adjustment), hedging of intercompany dividends
- Hedge breakage: accounting impact under different scenarios
✔ UNDERSTAND | Project timeline: from tender to completion
✔ APPLY | Case study: end of coverage and treatment in the event of breach
Why choose this course?
Currency hedging is often very delicate, because it involves relatively complex instruments, and generally requires close coordination between operational staff (monitoring foreign currency flows) and treasury (negotiating, monitoring and valuing derivatives). Lastly, it may apply to inter-company transactions that are likely to be eliminated.
This course is designed to help you understand, account for and audit financial instruments and currency hedging strategies.
Teaching and assessment methods
Before: self-assessment quiz
During the session: : technical developments accompanied by illustrations drawn from real-life situations. Numerous case studies (many of which are carried out on spreadsheets during the session) and interactive quizzes help to validate the acquisition of knowledge.
After the event: The trainer is available to answer any questions relating to the training.
General training | FinHarmony Conseil & Formation
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Price
2,250 EXCLUDING VAT
Testimonials
ifrs currency hedging training
ifrs currency hedging training
ifrs currency hedging training
Jonathan C.
Company
Training