Derivatives & Hedging Activities

Overview

This course provides an overview of the financial accounting and reporting requirements related to derivatives and hedging activities. Accounting and financial reporting requirements related to these activities are prescribed within ASC Topic 815.

This course provides guidance effective through the issuance of Accounting Standard Update (ASU) No. 2017-12 (Targeted Improvements to Accounting for Hedging Activities) and ASU No. 2018-16 (Inclusion of the Secured Overnight Financing Rate Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes). These amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.

Learning Objectives

Upon completion of this course students will be able to:

  • identify the appropriate U.S. GAAP guidance related to derivates and hedging activities
  • recognize key characteristics of derivative instruments including measurement requirements identify items that are within the scope of ASC Topic 815
  • recognize considerations related to embedded derivatives
  • identify overall principles and requirements related to hedge accounting
  • differentiate between types of hedge transactions recognize methods used for testing hedge effectiveness
  • identify overall financial statement disclosure requirements related to derivatives and hedging
  • recognize recent developments impacting accounting for derivatives and hedging activities

Prerequisites

1-3 years' experience in accounting

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