E-Learning_online IFRS

GID 4000 Hedging Currency, Interest and Price Risks (18 Hours): Online Via Live Webinar

£3,200.00 £1,800.00

*12 sessions of 90 minutes each

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Course Introduction

IFRS 9 – Hedging Currency, Interest and Price Risks

This course has been designed to provide you an in-depth and hands-on understanding of the market risk hedging strategies, hedge accounting framework under IFRS 9 & USGAAP and also GAAP differences.   This course covers the most frequent used hedging strategies and addresses most of the challenging issues which corporates and finance and treasury professionals face today.  This course will also cover the new hedge accounting framework under IFRS 9 which is effective from 2018.

What you would gain from this course?

  • Understand the reasons why companies hedge;
  • Construct a successful hedge and use hedge engineering to achieve better results;
  • Measure hedge effectiveness and ineffectiveness
  • Understand, identify and account for the following hedges:
    • fair value hedges;
    • cash flow hedges;
    • net investment hedges
  • Identify and analyze ‘hidden’ derivatives
  • Determine the appropriate treatment of embedded derivatives under IAS 39 and IFRS 9;
  • Discuss the latest developments and emerging accounting issues
  • Better understanding and up-to-date view of future hedge accounting requirements;
  • Reduction of income statement volatility;
  • Better understanding of drivers of income statement volatility and hedge ineffectiveness;
  • Enhanced processes and controls around hedge accounting;
  • More cost-effective hedging solutions and Compliance with the accounting requirements

Instructor Bio

Our trainers have specialist knowledge and first-hand experience of implementing the International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), Risk management strategies, Management practices, Compliance matters such as Basel regulations, Solvency II, Anti Money Laundering regulations and number of other evolving regulatory matters. This ensures an engaging and stimulating learning experience for professionals and senior executives, helping to ensure knowledge is retained.
They understand the accounting and regulatory requirements, risk environment, industry issues and challenges, risk management strategies, financial reporting & disclosure requirements, and compliance environment. They impart their knowledge using real-life industry examples, simple and user-friendly presentation of important concepts/approaches and case studies.  Here’s your chance to get to know some of our faculty members and thought-leaders in their fields.

Instructor for this Programme

Shasat Faculty

Course Description

Day -1

Introduction

  • Scope of hedge accounting under IAS 39 / IFRS 9
  • Recognition and Classification of financial instruments

Embedded derivatives

  • Derivative instruments and Practical challenges
    • Fx Forwards
    • Interest rate swaps
    • Cross currency swaps
    • Standard Vanilla options
  • Bifurcation criteria for financial assets and financial liabilities
  • Bifurcation criteria for non-financial instruments
  • Examples and case studies

Hedge Qualifying Criteria and documentation

  • Risk management strategy and risk management objectives
  • Changes in internal risk management objectives
  • Challenges and opportunities
  • Case Studies

 Hedging instruments

  • hedging instruments under IFRS 9
  • Enhanced scope of instruments
  • Derivatives or a proportion of them
  • Non-derivative or a portion of them
  • How to benefit from changes
  • Case studies and Practical challenges

Types of Hedges

  • Cash flow Hedges
  • Fair Value hedges
  • Net investment Hedges
  • Accounting of hedges
  • Accounting of time value options
  • Accounting for the forward element of forward contracts
  • Impact on current period earningsHedges of a group of items
  • Designation of a component of a nominal amount
  • Nil net position
  • Examples with accounting entries

 Day 2

Hedging transaction

  • Covering financial and non-financial instruments and risk exposures
  • Examples and group case studies

 Foreign exchange risk

  • Hedging a highly probable foreign sale transaction with a forward contract
  • Hedging foreign sale with structured collar

Hedging interest rate risk

  • Hedging floating/fixed interest rate risks with interest rate swap
  • Hedging floating/fixed rate risk with a structured collar/zero cost collar
  • Practical issues to consider

 Hedging foreign subsidiary

  • Net investment hedge using a forward contract
  • Net investment hedge using a cross currency swap
  • Net investment hedge using foreign currency debt
  • Hedging dividend from a foreign intragroup entity
  • Practical challenges

 Hedging foreign currency debt instruments

  • Hedging floating rate foreign currency debt with a CCIRS
  • Hedging fixed rate foreign currency debt with a CCIRS
  • Issue of basis spread and solutions;
  • Issues to consider

Hedging Commodity risk

  • IAS 39 vs IFRS 9 framework
  • Hedging firm commitment of a commodity with a forward contract
  • Hedging a highly probable forecasted transaction with a forward contract
  • Hedging inventory with a Future
  • Examples and case studies

Day -3

Hedge effectiveness testing

  • Qualitative criteria
  • Quantitative criteria
  • Use of Dollar offset method
  • Use of Regression method
  • Examples and effectiveness simulation exercise

How to rebalance a hedge

  • Effectiveness assessment and rebalancing
  • Proposed criteria under IFRS 9
  • Examples and Case studies
  • Challenges and managing existing hedges
  • Discontinuation of hedges which cannot be rebalanced

Hedging Credit risk

  • Existing credit risk hedging methodologies
  • Option to designate a credit exposure as measured at fair value through profit or loss
  • Credit risk hedging under IFRS 9
  • Examples and case studies

Disclosures and transition

  •  New disclosure and presentation requirements under IFRS 7
  • Unresolved issues
  • Latest update and developments
  • Effective date and transition
  • Planning and impact assessment

Macro hedging

  • Existing framework
  • New hedge accounting framework (Micro hedging)
  • Key challenges and proposal under consideration

Why you must attend?

With more and more countries adopting the IFRS as their accounting standards (almost over 140 countries) and also due to regular revisions and replacement of existing standards & principles, you must continue to develop your conceptual and practical understanding of the IFRS.  If you intend using the derivatives and hedging strategies for the first time then you must have the required knowledge and skills to implement the required framework under  IAS 39/IFRs 9 and be able to understand how this transition affects company’s reporting, and what it means going forward.  If you already have hedges in place then you must make sure that you continue to invest your time in learning about upcoming changes in the accounting standards (e.g. IFRS 9), new challenges and keep your self-updated with new risks due to continuing evolving market conditions and best practices used by the market players.

We have designed this comprehensive and detailed learning programme (3 days) to give you all the required knowledge, skills and experience to deal with these challenges.  We have one of the best and most experienced faculties in the world, with over 15 years of IFRS implementation experience in Europe and the emerging markets.

This is an instructor-led course for professionals (beginners to expert level) who want to gain a complete and in-depth understanding of derivatives and hedging strategies in a classroom environment.  This course has been designed to be highly interactive and practical as well as to provide in-depth learning of conceptual and practical issues for those who are looking to sharpen their skills and knowledge in dealing with hedging issues.  Shasat has developed this high-quality learning programme to help users develop their knowledge and application of the IFRS principles and concepts.  Our class sizes are limited (Maximum 10 participants per class) to preserve maximum interactivity and to enhance the fulfillment of learning outcomes.  Some of the key features of our training courses are:

  • Expert IFRS instructors with field experience;
  • Distinct scenarios, examples and case studies to explain concepts and methodologies;
  • A firm grounding for developing skills and competencies essential for financial reporting
  • Access to IFRS templates, tools, models and resources
  • Opportunities to discover new career path in IFRS/US GAAP

 Teaching methodology

  • User-friendly slide deck which summarises the concept, methodology, and principles in a simplest possible manner;
  • Interactive sessions with real-life case studies;
  • Concepts and methodologies are explained using examples and distinct scenarios;
  • Group exercises to illustrate accounting principles;
  • Discussion on GAAP differences, industry issues, and diversity in practices
  • Additional course material and handouts to all the attendees
  • Participants are encouraged to ask questions.

 Who should attend?

This course is suitable for professionals (beginners to specialists) from all industry groups.  Examples of some of the roles that will benefit from this course are:

  • Chief Financial Officers/ Finance Directors;
  • Treasurers
  • Finance executives
  • Corporate finance function;
  • Accountants / Financial Controllers
  • Financial Reporting Executives
  • Budget Officers / Forecasting Specialists;
  • Auditors (internal/External)
  • Risk managers
  • Merchant bankers
  • Tax Directors /managers
  • Regulators;
  • Academicians
  • Accountancy students
  • Analysts
  • Fund Managers and Investors
  • Strategic and Financial Planners
  • Private Equity and M&A Specialists
  • Investment Bankers
  • Corporate Bankers
  • Investment Managers and Senior operations managers

 Feedback

All delegates will receive an evaluation questionnaire upon completion of the course. The feedback from these questionnaires allows Shasat to conduct trend analysis and continuously improve the quality of its learning solutions

Venue & other info

Joining Instructions

We will send you the joining instructions with venue details at least 2 weeks before the commencement of the training program.

Sponsorship Opportunities

If you are seeking to profile your products, expertise and experience then Shasat will endeavour to assist your business objectives with opportunities such as:

Brand exposure

  • Targeted brand awareness and the association of your company with this area of expertise.

Thought leadership

  • Present your expertise to a targeted group of industry leaders.

Product demonstrations

  • Exhibit your products to new prospective clients already attending this conference.

Networking

For more information on how Shasat can help you meet your marketing objectives, Contact our customer service team at info@shasat.com

Data protection

The personal information which you provide to us will be held by us in our database. You agree that Shasat may share this information with other companies in the Shasat Group. Occasionally your details may be made available to selected third parties who wish to communicate with you offers related to your business activities. If you do not wish to receive these offers please contact the database manager at info@shasat.com

For more information about how Shasat uses the information, you provide please see our privacy policy at http://www.shasat.co.uk.com.   If you do not wish your details to be available to companies in the Shasat Group or selected third parties, please contact the customer service at info@shasat.com.

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Payment

In order to enrol for this programme, you can either make the payment online through our website or you can opt to make the payment via bank transfer/Demand draft/Cheque payment. Our payment web page will give you all the necessary options at the time of check out. Should you face any difficulty, please do not hesitate to contact us with your selected course and our customer services team will be happy to guide you through the payment process. You must also bear all the bank charges in relation to payment of course fees and payment must be made at least 3 weeks before the course date. Registration will be confirmed upon receipt of payment and completion of registration form only.

Group discount

You must enrol at least three participants in this program to obtain this special price.  We will offer additional 10% discount provided you enrol 6 or more participants. Please contact our customer services desk at info@shasat.com to discuss further on how to obtain a group discount code.

CPD hours

Each participant will be issued a training certificate which will certify that you have successfully completed the training course and the number of hours you spent to complete this training course.

Enquiries

Please contact our Customer Service for further assistance at info@shasat.com

In-House Training

Besides our wide range of public courses, we are proud to offer our In-house training services to our Global clients. This form of training is tailored to meet your business needs and also an effective way of training your teams which saves time and money and will improve the productivity of your employees, making your business more competitive. If you would like to run this course as an In-house programme in your organisation with necessary customisation to suit your needs then please contact us today to discuss this further.