Accounting for Derivatives and Hedging Activities in New York

Why You Should Attend

Accounting for derivatives and hedging transactions is no easy task. Under the rules, the same transactions may be accounted for in different ways, but some ways may be better than others. And determining the preferred treatment requires an appreciation of how derivative contracts work and what they can be expected to achieve. This program is designed to help attendees to view their use of derivatives the way the FASB does. The program points out areas of the accounting literature that are most controversial, highlights those areas that afford discretion on the part of those who prepare financial statements, and identify the choices that will most accurately reflect the risk management objectives of the firms.

1. Exactly what’s covered? Most of the instruments that are widely recognized as being derivatives are covered, of 
    course; but in addition, the course highlights many contractual features that never before had been thought of
    as derivatives now qualify under the accounting rules.

2. When does special hedge accounting apply? Hedge accounting isn’t automatic. FASB imposes rigid criteria that  
    must be satisfied before hedge accounting becomes appropriate.

4. What’s required in the way of modeling and data processing in order to value derivative contracts? All qualifying
    derivatives must be marked-to-market and recorded on the balance sheet. This requirement imposes new 
    demands on those in accounting functions. What do you need to know about how pricing models work and 
    the critical assumptions underlying these valuations?