Accounting for Derivatives ON DEMAND

Overview

A derivative is a financial instrument or other contract that derives its value from the movement of prices, interest rates, or exchange rates associated with an underlying item. Uncertainty about the future fair value of assets and liabilities or about future cash flows exposes firms to risk. One way to manage the risk associated with fair value and cash flow fluctuations is through the use of derivatives. This course addresses the accounting and disclosure requirements related to derivative financial instruments (derivatives). Also addressed are selected disclosure requirements for other financial instruments, primarily those related to fair value and concentrations of credit risk.

Highlights

Derivative Financial Instruments and Hedging. Definition of a Derivative. Hedge Accounting. Discontinuing a Cash Flow Hedge. Disclosure of Concentrations of Credit Risk for All Financial Instruments. Offsetting of Assets and Obligations. Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Options on Issuer’s Securities. ASU 2017-12 Targeted Improvements to Accounting for Hedging Activities. Authoritative Literature. ASC, FASB, and Difference between GAAP and IFRS.

Prerequisites

None.

Designed For

CPAs, CFOs, controllers, financial professionals, and auditors.

Objectives

Identify the attributes of conventional and derivative financial instruments. Recognize the risks associated with derivatives. Identify the accounting requirements for different derivatives and the related disclosure requirements.

Preparation

None.

Notice

None.