Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program

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Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program

CPE Credit: 16 Hours

Price: $1,545.00

NASBA Field of Study: Accounting

 

Overview

The rules for the hedge accounting model under US GAAP have changed with the issuance of the FASB’s final Accounting Standards Update—ASU No. 2017-12, “Derivatives & Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”

Easy to implement and maintain with reduced audit risks, the New Standard on Derivatives & Hedge Accounting refines and expands hedge accounting for both financial and commodity risks, creating more transparency around presenting economic results.

Our world-class team of current and former FASB regulators, Big 4 thought leaders and high-level industry experts will provide an in-depth explanation of the New Standard, guidance on how to navigate, implement and comply, and  reveal which requirements haven’t changed, yet are likely to attract renewed interest by auditors. 

Plus, you’ll gain insight into the board’s decision-making process directly from Jeffrey Gabello, Supervising Project Manager & Hedge Accounting Project Lead for FASB.
 

AGENDA HIGHLIGHTS

•  The Challenges of the US and Global Economy

•  What Financial Reform 2.0 Means for Multinationals

•  FASB Perspective on the New Derivative Accounting Update: Objectives and Outcomes

•  Panel Discussion on the New Derivative Accounting Standard

•  Overview of Hedge Accounting Under IFRS 9 and Multiple GAAPs

•  New Derivative Accounting Update: What Hasn’t Changed and What Might Get More Attention

•  Transition Provisions

•  Transitioning Away from LIBOR: What We Know and Don’t Know So Far

•  Contractual Risk

•  Effectiveness Assessment Before and After the Update

•  Cash Flow Hedging Strategies (Commodities, Currency, Interest Rates)

•  Fair Value Hedging Strategies (Interest Rates)

•  New Trends in Valuation

•  Managing Hedge Accounting Programs, Including Internal Controls  

 

LEARNING OBJECTIVE  To familiarize accounting and financial professionals with the latest rules regarding derivatives and hedge
accounting and the impact these rules will have on their companies.

PREREQUISITE  None.    ADVANCE PREPARATION  None.    PROGRAM LEVEL  Update.    NASBA FIELD OF STUDY  Accounting.
DELIVERY METHOD  Group Internet-Based.

 

This program is also available via live webinar
Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program Webinar

Agenda

DAY ONE AGENDA*


Deluxe Continental Breakfast & Registration
8:00 – 8:45 AM

Welcome & Opening Remarks
8:45 – 9:00 AM

The Challenges of the US & Global Economy
9:00
 – 9:30 AM

What Financial Reform 2.0 Means for Multinationals
9:30 – 10:30 AM
Two weeks after his inauguration, President Trump sent a strong signal of his intentions to revisit America’s financial regulations. His executive order called on the Treasury Secretary to issue a report recommending changes that would, among other things, advance economic growth and American competitiveness. Trump’s nominees to regulatory posts have now been confirmed and regulators are beginning to make progress on their reform agendas. Among them, the CFTC’s Chairman Giancarlo launched Project KISS, which stands for Keep It Simple Stupid—a clear signal of his intent to simplify what has become an incredibly complex derivatives regulatory infrastructure—among numerous other initiatives. The stir in Washington raises questions for multinationals, including: (1) what opportunities exist for easing regulatory burdens in the derivatives market and (2) how likely is it that change will actually happen?

Break
10:30 – 10:45 AM

FASB Perspective on the New Derivative Accounting Update: Objectives & Outcomes
10:45
 – 11:45 AM
Jeffrey Gabello, Supervising Project Manager and Lead on the Hedge Accounting Project for FASB, will provide you with a detailed analysis of changes to the hedge accounting model under US GAAP—ASU No. 2017-12, titled, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”

Panel Discussion on the New Derivative Accounting Standard
11:45 AM
 – 12:45 PM
Industry experts will interact with the Project Manager, and each other, to discuss transition challenges, panelist and participant interpretations, and expected practice direction.

Luncheon
12:45
 – 1:45 PM

Overview of Hedge Accounting Under IFRS 9 and Multiple GAAPs
1:45 – 2:45 PM
This session will provide an overview of the hedge accounting principles in IFRS 9, including a comparison against US GAAP. This session will also address situations where companies are required to prepare financial statements under multiple accounting frameworks (e.g. US GAAP and IFRS or IFRS and UK GAAP, etc.).

Break
2:45 – 3:00 PM

New Derivative Accounting Update: What Hasn’t Changed & What Might Get More Attention
3:00 – 4:00 PM
There are a number of substantial changes to the guidance that are likely to impact many aspects of a company’s hedge program. In spite of all the changes, many requirements have remained the same. What hasn’t changed, and which of those elements are likely to attract renewed interest by auditors, will be the focus of this session.

Transition Provisions
4:00
 – 5:00 PM
There are numerous transition provisions in the Update that must be carefully considered. This session will discuss each aspect of the transition guidance and provide insight on how to successfully navigate the transition process.

Cocktail Reception
5:00 – 6:00 PM

 

DAY TWO AGENDA*


Deluxe Continental Breakfast
8:00 – 8:45 AM

Opening Remarks
8:45 – 9:00 AM

Transitioning Away from LIBOR: What We Know & Don’t Know So Far
9:00 – 9:45 AM
On June 22, 2017, the Alternative Reference Rates Committee (ARRC), convened by the Federal Reserve Bank of New York, voted to establish a new benchmark interest rate, and reached a consensus that a broad-based Treasury repo rate is most ideal for use going forward in certain USD derivatives and other financial instrument transactions.
On August 24, 2017, the Federal Reserve Board issued a proposal for public comment on the creation and publication of the new benchmark rate, referred to as the Secured Overnight Funding Rate (SOFR). Publication of SOFR is expected to commence in the first half of 2018.
The ARRC will begin to refine its proposed transition plans in coordination with key stakeholders in Q4 2017. During this session we will address the following:

Potential transition mechanisms and implications
Implication of transitioning existing contracts to SOFR on valuation

Implication of replacement of LIBOR with SOFR on hedge accounting  

Contractual Risk
9:45
 – 10:30 AM
The Update has dramatically altered the landscape on “hedgeable risk.” This session will address the concept of contractual risk from its introduction in earlier exposure drafts, through its evolution at issuance. Get a practical assessment of what will and won’t qualify under the new guidance.

Break
10:30
 – 10:45 AM

Effectiveness Assessment Before & After the Update
10:45
 – 11:45 AM
Assessing hedge effectiveness and measuring hedge ineffectiveness experienced significant change in ASU 2017-12. This session will discuss the evolution of performing effectiveness assessments, including discussion of new methods available under ASU 2017-12. The session will also delve into changes to measuring hedge ineffectiveness. Despite the fact that hedge ineffectiveness is no longer required to be measured and separately presented in the financial statements, it will exist in hedging relationships that contain mismatches. We will explore how ineffectiveness has changed and how it will impact the financial statements prospectively.

Luncheon
11:45 AM – 12:30 PM

Cash Flow Hedging Strategies (Commodities, Currency, Interest Rates)
12:30
 – 1:45 PM
The ease of implementation and benefits under the Update have driven substantial demand to early implement special hedge accounting for companies and financial institutions around the country. This will be a review of common cash flow hedging strategies by asset class of the key considerations in making the move and determining the best timing of adoption.

Fair Value Hedging Strategies (Interest Rates) 
1:45
 – 2:45 PM
The Update has opened the door, and maybe a new chapter, for the hedging of fixed rate interest rate risk. The presenter will share insights into how to maximize the benefits of Fair Value hedging of fixed rates, with the new concepts of partial-term hedging, last of layer hedging, and expanded benchmarks outlined in the Update.

Break
2:45 – 3:00 PM

New Trends in Valuation
3:00 – 3:45 PM
Review the key inputs and modeling required to appropriately fair value derivatives under ASC 820 and get an overview of related disclosure requirements. Basic derivatives fundamentals, trends, etc. including CVA and DVA.

Managing Hedge Accounting Programs, Including Internal Controls
3:45
 – 4:45 PM
Tips and tactics for how to effectively manage a hedge accounting program, including a discussion about requirements, available tools, internal control considerations, and pointers for running it efficiently.

Conference Ends
4:45 PM

 

* PLEASE NOTE: Session topics and times are subject to change based on location and speaker availability. Please call 1-800-544-1114 for specific agenda details.

 

This program is also available via live webinar
Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program Webinar

Speakers

CONFERENCE CHAIRPERSON


Dan Gentzel, Managing Director of the Global Accounting Advisory Practice at Chatham Financial, has more than 15 years of experience advising corporate multinationals, REITs, and financial institutions on technical hedge accounting and derivative valuation matters under both US GAAP and IFRS. Prior to joining Chatham, he was a Manager in the audit practice of Ernst & Young, where he served large regional financial institutions and acted as the firm’s regional derivative valuation specialist. Mr. Gentzel received his BS in Business Administration, cum laude, from Bloomsburg University in 1997.
 

FEATURED SPEAKER


Jeffrey Gabello, Supervising Project Manager and Hedge Accounting Project Lead, FASB, was previously an Accounting Policy and Revenue Recognition Manager at IBM, where he provided transactional guidance and drafted comment letters to the FASB and IASB on proposed accounting standards, and was responsible for reviewing and implementing new accounting updates and exposure drafts to assess their impact on the company. Mr. Gabello also served as Assistant Director of External Reporting for UBS AG in Zurich, where he concentrated on IFRS, GAAP and SEC reporting.
 

CONFERENCE SPEAKERS


Eric Juzenas is a Director in Chatham’s Global Regulatory Solutions Team, advising on derivatives regulatory compliance and legal documentation, including regulatory advisory, ISDA negotiation, pre- and post-trade compliance processes, and standalone regulatory technology solutions. As well as helping to draft portions of the Dodd Frank Act, he worked on several reauthorizations of the US Commodity Futures Trading Commission, and participated in international policy and regulatory efforts with the European Union, Financial Stability Board, and the International Organization of Securities Commissions. Mr. Juzenas was previously a deputy to the US Financial Stability Oversight Council at the CFTC.

Eri Panoti is a Director of Chatham’s Accounting Advisory, serving financial institutions. She consults clients on accounting for both balance sheet risk management strategies and customer hedging needs. Prior to joining Chatham, Ms. Panoti worked at KeyBank in Cleveland, where she focused on accounting policy for derivatives and hedging, as well as SEC reporting. She has also held audit positions at the Cleveland, Ohio, office of Deloitte.

Sam Picklesimer is a member of Chatham’s Accounting Advisory Team, primarily serving corporate clients. Prior to joining Chatham, he was a Senior Manager in EY’s Professional Practice/National Accounting Group in New York City, where he focused on topics relating to financial instruments. Before that, Mr. Picklesimer was in EY’s Salt Lake City audit practice, serving a wide range of clients, especially financial institutions. He received his BS and Masters in Accounting from Brigham Young University and is a CPA in Utah and New York.

Kern Roberts helps lead Chatham’s European Accounting Advisory team, specializing in hedge accounting under IAS 39, IFRS 9 and FRS 102. He also advises on embedded derivatives, the fair value requirements under IFRS 13, and the disclosure and presentation of financial instruments. Mr. Roberts sits on the European Accounting Committee of the International Swaps and Derivatives Association (ISDA). Prior to joining Chatham, he worked for Barclays in their Technical Accounting Group acting as the key Technical Accounting Contact for Barclays Risk Solutions Group (primarily focused on derivative risk management products for corporate clients), as well as providing technical accounting review and input to Barclays’ external IFRS reporting.

Brittany Schwartz is a Director on the Accounting Advisory Team at Chatham Financial, providing solutions for foreign exchange, interest rate, and commodity price risk, including hedge accounting. Prior to joining Chatham, Ms. Schwartz spent time at Deloitte. She is a graduate of Pennsylvania State University, and holds an active CPA in the state of Pennsylvania.

Jamie Weaver leads Chatham’s Global Corporates Accounting Advisory Team, serving clients across a wide range of industries. Prior to joining Chatham, Mr. Weaver worked in the assurance practice at PwC, and served on the accounting team at Exelon Generation Company, as well as the Corporate Accounting team at DuPont. He graduated from the University of Delaware with a BS in accounting, with minors in Spanish and history, and holds an active CPA license.

Luke Zubrod is Director of Strategic Initiative at Chatham, where he’s in charge of strategic initiatives to advance the company’s market impact and organizational culture. Apart from elevating end-user perspectives related to derivatives public policy, he has also participated on the Commodity Futures Trading Commission’s Market Risk Advisory Committee. Previously, he led teams of advisors for CFOs and treasurers of real estate companies, corporates, and regional banks on interest rate and currency risk management. Mr. Zubrod is a popular financial author, and a former management consultant for Deloitte.

 

This program is also available via live webinar
Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program Webinar

Forum

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Location

CPE INC. has reserved a block of rooms at preferential rates. To make your hotel reservation,
call CPE INC. or the hotel’s reservation department and ask for the CPE INC. special room rate.

 

Tysons Corner Marriott
8028 Leesburg Pike
Tysons Corner, VA 22182
(703) 734-3200

 

This program is also available via live webinar
Derivatives Accounting Conference 2018: Critical New Guidance & Its Effect on Your Hedge Program Webinar

Increase your savings by taking our pre-conference workshop. Pricing is as follows:

Conference: $1545
Workshop: $595
Conference & Workshop: $1950

In addition to these discounts, you may be entitled to Early Bird and Customer Loyalty Discounts.
To take advantage of these discounts, please enter your reference number at checkout.