DERH-W02
Accounting for Derivative Instruments and Hedging Activities: An Exploration and Evaluation of ASC Topic 815 and Topic 820 (Fair Value Measurements)

Best Value! Buy a webinar package and save
-- choose the Unlimited Webinar Package or the eight- and sixteen-credit packages.

Date/Time: Wednesday, June 27, 2012, 9 a.m. - 5 p.m. Eastern (see all dates)

Presenter(s): Michael Morgan, CPA

This course is ideal for accountants and auditors with a basic knowledge of accounting for financial instruments who want to strengthen their expertise in the more intricate aspects of accounting for derivatives and hedging.

Major Topics:

Derivatives

Analysis and examples of common derivatives (including options, interest rate swaps, currency swaps, forwards and futures)
- Cash flows
- Variations of ‘standard’ derivative contracts
- Techniques for measuring fair values using ASC 820 Guidelines
Accounting for derivatives

Hedging

Analysis and examples of common hedging relationships
- Hedged items
- Hedging instruments
Definition and mechanics of fair value, cash flow and net investment hedges
Examples (commodity contracts, interest rate and Forex risk exposures)

Cash Flow Hedges

Accounting for cash flow hedges
Impact on current period earnings
Exposed assets & liabilities as Cash Flow Hedges
Cash flow hedges of forecasted transactions
Impact of a discontinued hedge
Documentation requirements
Examples (Interest rate, Foreign exchange and Price risks);
Case Studies

Fair Value Hedges

Accounting for fair value hedges
Impact on current period earnings
Exposed assets & liabilities as Fair Value Hedges
Firm commitments as fair value hedges
Impact of a discontinued hedge
Documentation requirements
Examples and case studies

Hedge accounting

Hedge documentation
Measuring and testing hedge effectiveness
Measuring and accounting for hedge ineffectiveness
Discontinuation of hedge accounting

Presentation and Disclosures

Examination of public firms disclosures

Learning Objectives:

Understand the reasons why companies hedge
Construct a successful hedge and use hedge engineering to achieve better results
Measure hedge effectiveness and ineffectiveness
Identify and account for the following hedges: fair value hedges, cash flow hedges, net investment hedges and interest rate hedges
Identify and analyze ‘hidden’ derivatives
Determine the appropriate treatment of embedded derivatives under ASC 815
Discuss the latest developments and emerging accounting issues

Designed For: Practicing CPAs and accounting professionals in business and industry that prepare or review financial statements

Course Level: Basic

CPE Credits: 8, Accounting

Prerequisite: Experience in financial reporting

Advance Preparation: None

DERH-W02 Accounting for Derivative Instruments and Hedging Activities: An Exploration and Evaluation of ASC Topic 815 and Topic 820 (Fair Value Measurements)

Best Value! Buy a webinar package and save -- choose the Unlimited Webinar Package or the eight- and sixteen-credit packages.

DERH-W02
Accounting for Derivative Instruments and Hedging Activities: An Exploration and Evaluation of ASC Topic 815 and Topic 820 (Fair Value Measurements)

Best Value! Buy a webinar package and save
-- choose the Unlimited Webinar Package or the eight- and sixteen-credit packages.