Overview:
Keeping pace with the current state of derivatives accounting is a challenge. This up-to-the-minute seminar will provide financial professionals with an update on the latest pronouncements and exposure drafts. By attending, you will:
- Gain an in-depth understanding of derivative valuation principles and methodologies
- Discuss approaches for hedge effectiveness testing
- Understand the SEC’s new derivative rules under Dodd-Frank
- Learn how to avoid common pitfalls and address special or unique situations
Objective:
To give accountants and auditors an update on current developments in derivatives accounting. You'll gain an improved working knowledge of valuation issues, hedge documentation, effectiveness testing, IFRS convergence, disclosure requirements and more.
Emphasis:
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Regulatory Update
– The USA
• The FASB Accounting for Financial Instruments Project
• The new CFTC and SEC derivative rules under Dodd-Frank
– The IASB Exposure Draft on hedge accounting
– The status of IFRS convergence -
Valuation issues: an update on ASC 820 (FAS 157)
– Illiquidity/market disruption issues
– Credit valuation issues -
Disclosure rules
– Expanded disclosures (FAS 161)
– New disclosures on fair value
– The market risk disclosures -
Special SEC considerations and industry developments
– Documentation and effectiveness testing
– Short cut method
– Critical terms match method
– Separation of risk
– Industry practice on quantitative methods
– Regression analysis and other methods -
Pitfalls/special situations
– Normal purchase and sales
– Embedded derivatives
– Derivatives with off-market terms
