Description
Understand the basics of hedge accounting and the financial statement impacts.How do entities manage the earnings volatility related to their hedging activities? The answer hedge accounting. This course will provide a highlevel overview of the main areas of hedge accounting. This material will discuss the benefits of hedge accounting, documentation requirements, effectiveness assessments, and hedge accounting strategies for entities seeking preferential accounting treatment.
Date: 2022-05-12 Start Time: End Time:
Learning Objectives
Basics of Hedge Accounting and Description of Broader Financial Statement Impacts of Hedge Accounting
• Hedge Accounting Concepts • Cash Flow, Fair Value, and Net Investment
• Hedge Accounting Impacts • Affected Balance Sheet and Income Statement Accounts
• Hedge Accounting Benefits • Earnings Stability, Enhanced Operating Margin, Key Stakeholder Optics
Documentation Required for Hedge Accounting
• Hedge Designation Memorandum and Addendums
• Memorandum Sections • Risk Management Objective, Description of the Hedge Relationship, Methods for Assessing Effectiveness, and Financial Statement Impacts
Effectiveness Testing
• Testing Approaches • Hypothetical Derivative, Change in Variable Cash Flows, Fair Value
• Statistical Assessment Methods • Regression, Stress Testing, Value-At-Risk
• Effective and Ineffective Results
Basics of Component and Portfolio Hedging
• Component Hedging Concepts • Financial Contracts, Non-Financial Contracts
• Portfolio Hedging Concepts • Pools of Assets, Expected Sales, Raw Material Purchases
CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Craig Haymaker, CPA-HedgeStar
