Derivatives are evolving and standard-setters have developed new accounting requirements to manage the associated risks and make the derivatives markets safer and more efficient. This comprehensive two-day in-person masterclass in accounting for derivatives will provide you with the essential knowledge you need to navigate this complex area and is open to professionals with all levels of expertise.
The first day will begin with an overview of fundamental concepts, starting with the various derivative products (i.e., futures, forwards, options, and swaps) and their functionality and accounting impact. The overall focus will be to introduce you to the foundations behind accounting for derivatives, how entities use these instruments in practice, along with their respective balance sheet presentation (e.g., netting and offsetting requirements) and measurement under US GAAP and IFRS. The course will also provide an overview of the valuation of derivatives and the requirements for recognizing valuation adjustments such as credit valuation adjustment (CVA), debit valuation adjustment (DVA), funding valuation adjustment (FVA) and other valuation adjustments (XVAs). In addition to these educational sessions, there will be an interactive panel discussion led by high-calibre speakers who will be discussing the key recent market developments in derivative use.
The second day will be a deep-dive into more advanced topics. This course intends to teach attendees how to designate hedge accounting relationships, assess hedge effectiveness, prepare journal entries, and draft the required disclosures. Through various sessions, you will learn about the different hedge accounting models and the requirements to qualify for hedge accounting including portfolio hedging, and how to navigate the issues pertaining to the bifurcation of hybrid instruments with embedded derivatives, noting differences between IFRS and US GAAP. The course will provide updates on recent developments on projects from both the FASB, related to definition of a derivative and hedge accounting improvements and the invitation to comment on the technical agenda and the FASB’s focus areas going forward, as well as the IASB related to Dynamic Risk Management and the Classification and Measurement of Financial Instruments. Finally, it will discuss the latest developments in accounting for environmental, social and governance (ESG) instruments and digital assets. There will also be a brief session providing market updates related to the recent banking and liquidity crisis.
Led by a team of senior industry practitioners and accounting specialists, this in-person course will equip professionals with a deep practical knowledge of core accounting issues and strategies, as well as insights into emerging trends reshaping the derivatives business.
