Hedging has become a necessary activity for companies operating in the contemporary globalized economy. During this self-study webinar, we will discuss the elective criteria necessary to qualify for hedge accounting, as well as:
- Reducing the confusion and variable elements in currency exchange rates
- Accurately plan their international payments, budgets and costs
- Three types of hedges
-
Understanding foreign currency exposure
To provide financial professionals with the necessary information to utilize Foreign Exchange Hedges effectively, allowing their companies to create accurate financial forecasts and efficient strategies.
SPEAKER:
Harrison Braaksma, Senior Manager, Audit & Assurance, Deloitte
- Overview of Foreign Currency Hedges
-
Types of Foreign Currency Hedges
– Fair Value
– Cash Flow
– Net investment - Designating Qualifying Relationships
- Identifying Eligible Parties
- Risk Management & Hedging on an After-Tax Basis
- Forecasted Transactions
- Documentation Requirements
- Discontinuing the Relationship
• Understand the purpose of hedge accounting
• Distinguish between the types of foreign currency hedges
• Recognize qualifying items for foreign currency fair value hedges
• Understand the purpose of a net investment hedge
• Identify the requirements for hedge effectiveness
• Identify where gains and losses on cash flow hedges are recognized
• Understand the treatment of excluded components in foreign currency hedges
• Identify the conditions for discontinuing a hedging relationship