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Financial Instruments - Hedge Accounting

BPP Professional Education

Summary

Price
£372 inc VAT
Study method
Classroom
Duration
1 day · Full-time
Qualification
No formal qualification
CPD
3 CPD hours / points
CPD What's this?
Additional info
  • Tutor is available to students

Location & dates

Location

Address
Venue may change up to 14-days before the course start date’
9-10 Portland Place
West London
London
W1B1PR
United Kingdom
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Overview

A major objective of the IAS 39 hedge accounting regime was to neutralise the perverse outcomes of applying the standard’s basic provisions to the most widely used, commercially sound hedging strategies. The experience of many users is that IAS 39 hedge accounting has been at best only partially successful. For this reason and others, IFRS 9 has been introduced. The final version of IFRS 9 Financial Instruments was published in July 2014. Hedge accounting was the third phase of this immense project. The standard is effective for accounting periods beginning on or after 1 January 2018.

This course gives you an understanding of IAS 39 hedge accounting rules. Many entities use derivative financial instruments to hedge their exposure to different risks (for example interest rate risk, foreign exchange risk, etc.). IAS 39 (Financial Instruments: Recognition and Measurement) covers the accounting for derivatives under international accounting standards.

Under IAS 39 all derivatives are marked-to-market with changes in the mark-to-market being taken to the profit and loss account. This accounting treatment would therefore result in a significant amount of profit and loss volatility for many entities. This profit or loss volatility can be mitigated by invoking the optional rules of hedge accounting under IAS 39.

This course will also provide an overview of hedge accounting requirements under IFRS 9. See also Financial Instruments – IFRS 9 & the Replacement of IAS 39 for fuller details of IFRS 9.

Venue may change up to 14-days before the course start date. Enquire for dates.

CPD

3 CPD hours / points
Accredited by BPP Professional Education Limited

Description

Learning outcomes include obtaining a greater understanding of:

  • Mechanics of hedge accounting
  • Hedged items
  • Hedging instruments
  • Categories of hedge
  • Examples of hedges
  • Documentation
  • Hedge effectiveness
  • Discontinuing hedge accounting
  • Overview of IFRS 9

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."

Who is this course for?

This half day course is suitable for those working in the financial services sector or any other business sector with some exposure to financial instruments and wanting to gain a better understanding of the complex area of hedge accounting. .

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Legal information

This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.

FAQs

Study method describes the format in which the course will be delivered. At Reed Courses, courses are delivered in a number of ways, including online courses, where the course content can be accessed online remotely, and classroom courses, where courses are delivered in person at a classroom venue.

CPD stands for Continuing Professional Development. If you work in certain professions or for certain companies, your employer may require you to complete a number of CPD hours or points, per year. You can find a range of CPD courses on Reed Courses, many of which can be completed online.

A regulated qualification is delivered by a learning institution which is regulated by a government body. In England, the government body which regulates courses is Ofqual. Ofqual regulated qualifications sit on the Regulated Qualifications Framework (RQF), which can help students understand how different qualifications in different fields compare to each other. The framework also helps students to understand what qualifications they need to progress towards a higher learning goal, such as a university degree or equivalent higher education award.

An endorsed course is a skills based course which has been checked over and approved by an independent awarding body. Endorsed courses are not regulated so do not result in a qualification - however, the student can usually purchase a certificate showing the awarding body's logo if they wish. Certain awarding bodies - such as Quality Licence Scheme and TQUK - have developed endorsement schemes as a way to help students select the best skills based courses for them.
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