ISDA Accounting Meeting

Accounting for Derivatives and Financial Instruments and LIBOR Transition

Tuesday, April 9, 2019
Grand Hyatt Hong Kong
Hong Kong

Sponsored by   

This event will give market participants in derivatives markets an update on the accounting issues that will have an impact on the market due to accounting and regulatory changes. Particular consideration will be given to hot topics in Asia, LIBOR transition, and U.S. GAAP and IFRS accounting developments.

It is clear that most companies (not just banks) will be affected by LIBOR transition. Interbank offered rates (IBORs) play a central role in financial markets and act as reference rates to hundreds of trillions of dollars in notional derivatives and trillions of dollars in bonds, loans, securitizations and deposits.

The dependence on IBORs by all sectors of financial markets is changing. Driven by benchmark reform initiatives that have recommended reducing the reliance on IBORs, work has been undertaken, or is underway, in multiple jurisdictions to select alternative nearly risk-free rates (alternative RFRs) and to plan for a transition to those rates.

Hedge accounting is a vital risk management tool connecting cash and derivatives markets and the lack of understanding of the transition to risk-free-rates (“RFR”) may have important consequences for banks, corporates and end-users.

This conference will give market participants a comprehensive understanding of the issues that will have an impact on their business due to the transition to RFRs and the accounting implications of replacing LIBOR, in addition to the topics noted above.

Educational Credits

2 CPD Credit Hours Available (England and Wales)

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Tuesday, April 9, 2019

9:15 AM Registration and Coffee

9:45 AM Introduction and Welcoming Remarks

9:50 AM Updates for Asia

10:10 AM LIBOR transition: introduction and industry concerns

  • Why is LIBOR being phased out?
  • What Asian benchmarks and jurisdictions are being affected?
  • Legacy trades: do not let the event catch you by surprise
  • Does the transition to the alternate RFR constitute a modification or extinguishment of the financial instrument?
  • Does the transition result in a new hedging instrument and discontinuation of current hedge relationships?
  • How should we assess the ‘probability of cash flows’ and impact on hedge accounting
  • How to manage de/re-designations (including how to calculate ineffectiveness)
  • Reassessing and re-documenting existing hedge relationships
  • Potential impact on balance sheet and P&L from ineffectiveness and hedge accounting failure?
  • How to be ahead of your competitors including:
    • Multiple functions within a company that are impacted by LIBOR transition
    • Comprehensive organization-wide program management and governance
    • Liaising effectively with technical experts, regulators and other stakeholders

11:30 AM IFRS/U.S. GAAP accounting developments

  • Financial instruments with characteristics of equity (debt/equity)
  • Accounting for cryptocurrencies and tokens
  • Hedge accounting and the last-of-layer method

12:00 PM Conference Concludes

Agenda is subject to change.

Register Now for ISDA Accounting Meeting

This event is open to ISDA members only

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Grand Hyatt Hong Kong, 1 Harbour Road, Hong Kong, China tel: +852-2588-1234

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Intermediate

Some knowledge of derivatives is assumed. No advance preparation is required.

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ISDA is an accredited provider of continuing education credits by the following organizations:

  • CLE

    ISDA has been certified by the New York State Continuing Legal Education Board as an Accredited Provider of continuing legal education in the state of New York.

  • CPE Sponsory

    ISDA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors: 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. www.nasba.org

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conferences@isda.org | +1 212-901-6000