Accounting for Derivatives and Hedging

Course Description

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. 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.

Learning objectives

• a:2:{i:0;s:77:"Identify the attributes of conventional and derivative financial instruments.";i:1;s:55:"Recognize the criteria to qualify for hedge accounting.";}
• a:1:{i:0;s:103:"Identify the accounting requirements for different derivatives and the related disclosure requirements.";}

Final examination expiration date:

The program participant will have one year from the date of purchase to complete the course and final examination.