KPMG Executive Education

Derivatives and Hedging Foundations for Accountants

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About the course

Derivatives and Hedging can be an important part of any company’s investment and risk management strategy. But understanding and accounting for derivatives and hedging has been challenging. Recently, the FASB has made targeted improvements to hedge accounting (ASU 2017-12), and as a result the opportunities for using hedge accounting have increased and the difficulties have decreased. The revised rules create an opportunity for you to re-think your approach to the use of derivatives and hedge accounting.

Our new course, developed and delivered by some of KPMG’s leading derivatives and hedging professionals, provides a thorough introduction to both the business and accounting sides of derivatives and hedging. This two-day seminar offers accounting and treasury professionals practical instruction to apply derivative and hedge accounting guidance relevant to calculating earnings, OCI allocations, reclassifications and disclosure amounts, with a strong focus on the updated hedging standards, including transition requirements.

We start with an overview of plain vanilla derivative products like futures, forwards, options and swaps, including how these contracts work and the associated accounting treatments. You will learn about broad derivative market categories, including interest rates, commodities, and currencies. We’ll give you opportunities to practice your new skills with hands-on case studies and class discussions. For those already using hedge accounting, we’ll cover the differences between current GAAP for derivatives and hedging transactions and the new revisions, and round out your knowledge with differences between IFRS and U.S. GAAP.

Agenda

  • Introduction to Derivatives
  • ASC Topic 815 (FAS 133) Definitions
  • Alternative Accounting Treatments
  • ASU 2017-2 Updates
  • Interest Rate Swap Case Study
  • Documentation Requirements
  • Disclosures
  • Review of FAS 52 Issues
  • Foreign Currency Hedging
  • Interest Rate Hedging
  • Recent Developments under U.S. GAAP and IFRS
  • Other Related Topics

Who should attend

  • Prerequisite: Baseline understanding of U.S. GAAP Accounting
  • Preparation: None
  • Level of Knowledge: Intermediate
  • Field of Study: Accounting
  • Delivery Method: Group Live, Instructor-Led Course

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