Accounting for Derivatives and Hedging ON DEMAND

Overview

The derivatives and hedging guidance codified in ASC 815, Derivative Instruments and Hedging Activities is considered as one of the challenging areas in GAAP due to its extensiveness and complexity. This course provides an accountant-friendly overview of derivative instruments and hedge accounting. This course discusses derivatives, including the definition of a derivative, scope exceptions to ASC 815, types of risks, accounting requirements, and guidance on embedded derivatives. This course addresses the requirements for applying hedge accounting and the specific requirements for fair value hedges, cash flow hedges, and net investment hedges. It also discusses the presentation and disclosure requirements. Finally, the course identifies special situations such as servicing of financial assets and mortgage servicing rights.

Highlights

Derivative instruments. Financial statement presentations.

Prerequisites

None.

Designed For

CPAs.

Objectives

Identify the attributes of conventional and derivative financial instruments. Recognize the criteria to qualify for hedge accounting. Identify the accounting requirements for different derivatives and the related disclosure requirements.

Preparation

None.

Notice

None.