Day 1 |
8:45 - 10:45 | OVERVIEW OF TRADITIONAL DERIVATIVES: Basic Terminology and Market Conventions - Futures
- Forwards
- Options
- Swaps
| IRA G. KAWALLER
President
Kawaller & Company, LLC |
10:45 - 11:00 | COFFEE BREAK | |
11:00 - Noon | DERIVATIVES ACCOUNTING OVERVIEW - “Regular” accounting
- Special hedge accounting
- Fair value accounting
- Cash flow accounting
- Accounting for hedges of net investments
| IRA G. KAWALLER
President
Kawaller & Company, LLC |
Noon – 1:00 | LUNCHEON An opportunity to network with the faculty and your colleagues. | |
1:00 - 1:45 | HEDGE DOCUMENTATION REQUIREMENTS - Pitfalls of identification
- “Excluded Items”
- Special treatment for purchased options, caps, and floors
| IRA G. KAWALLER
President
Kawaller & Company, LLC |
1:45 - 2:45 | EFFECTIVENESS TESTING ISSUES - The “hypothetical derivative” concept
- Calculating dollar offset ratios
- A primer on the use of regression
- Audit/SEC concerns
| IRA G. KAWALLER
President
Kawaller & Company, LLC | |
2:45 - 3:15 | DISCLOSURES FOR DERIVATIVES - Review of requirements
- Common misrepresentations (to be avoided)
- Examination of sample presentations
| IRA G. KAWALLER
President
Kawaller & Company, LLC | |
3:15 - 3:25 | COFFEE BREAK | | |
3:25 - 5:15 | CURRENCY HEDGING - Accounting for alternative exposure types
- Documentation pitfalls
- Uses of cross-currency interest rate swaps
- Consolidation issues
| IRA G. KAWALLER
President
Kawaller & Company, LLC | |
5:15 | DAY ONE ADJOURNMENT | |
Day 2 |
8:30 - 10:15 | HEDGING INTEREST RATE EXPOSURES - Swap pricing
- Cash flow hedges for interest rate exposures
- Fair value hedges for interest rate exposures
- Short cut vs. long haul
- Effectiveness concerns
- Case study: the perfect hedge
| IRA G. KAWALLER
President
Kawaller & Company, LLC |
10:15 - 10:30 | COFFEE BREAK | |
10:30 - 10:45 | COMMODITY HEDGING - Applying the normal purchase/sale exemption
- Documenting the hedging relationship
- Defining a hypothetical derivative
- Maintaining effectiveness when basis risk is evident
| IRA G. KAWALLER
President
Kawaller & Company, LLC |
10:45 - 12:00 | ACCOUNTING CASE STUDY
This case demonstrates the process by which journal entries are determined when hedges are imperfect. It illustrates by example how to determine allocations between OCI and earnings and how calculate required disclosure amounts. | IRA G. KAWALLER
President
Kawaller & Company, LLC |
12:00 - 1:00 | LUNCHEON An opportunity to network with the faculty and your colleagues. | |
1:00 - 2:15 | NON-HEDGE CONCERNS - Definition of a derivative
- Exemptions to the standard
- Embedded derivatives
- “Clearly-and-closely-related”
| TO BE ANNOUNCED |
2:15 - 3:00 | OTHER ACCOUNTING CONSIDERATIONS
- Derivatives and cash flow statements
- Issues relating to FAS 52
- Bifurcation or the fair value election?
- International accounting standards
- Briefing on current FASB projects
| TO BE ANNOUNCED |
3:00 - 4:00 | OPEN DISCUSSION AND Q&A: CURRENT CONCERNS OF CONFERENCE PARTICIPANTS | IRA G. KAWALLER
President
Kawaller & Company, LLC
TO BE ANNOUNCED |
4:00 | COURSE ADJOURNMENT | |
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