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This FAS
133 CPE course will help you understand how the derivatives market works
for hedging interest rate risk and foreign currency risk, and how to account
for hedging transactions under the complex accounting rules of FASB Statement
133 and its amendments.
Under FAS 133, “Accounting for Derivative Instruments and Hedging Transactions,”
getting the accounting treatment “right” isn't easy. Achieving this goal
requires close coordination between hedgers and financial reporting professionals
who, besides managing the accounting process, are responsible for drafting
hedge documentation that serves as the prerequisite requirement for qualifying
for the accounting treatment most typically desired.
Preparing this qualifying documentation requires all concerned to understand
the language of the market place and to have an appreciation of what derivatives
can (and cannot) do. Special attention is given to the question of how to
design hedge effectiveness tests and how to measure hedge ineffectiveness,
arguably the most challenging aspects of FAS 133 for those seeking to qualify
for hedge accounting treatment.
The program also discusses the correct journal entries and disclosures
relating to derivatives. Using “hands-on” case studies you will determine
the correct earnings and OCI allocations, and compile appropriate disclosure
amounts relating to ineffective hedge results and reclassification.
Woven throughout the course will be material from the FASB agenda
project that may fundamentally alter certain hedge accounting considerations.
This course qualifies for CPE credit.
See below for more detail.
CPE Course Agenda
- Alternative Accounting Treatments
- Overview of Traditional Hedging Derivatives
- Cash Flow / Fair Value Accounting Case Study
- Documentation Requirements (and Pitfalls)
- Foreign Currency Hedging
- Interest Rate Hedging
- OCI/Earnings Allocation Cases
(Demonstrating perfect and imperfect hedges)
- Non-Hedging FAS 133 concerns
- Other related Standards (Domestic and International)
Tuition: $1,645
CPE Credit: 16 Recommended Hours
Prerequisite: Knowledge of Basic Accounting
Preparation: None
Level of Knowledge: Intermediate
Field of Study: Accounting
Delivery Method: Group Live Instructor
Led Course
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