Accounting for Interest Rate Swaps Self-Study Webinar (1.5 Hours)

Overview: 

An integral part of fixed-market income, interest rate swaps are financial derivatives that companies use to exchange interest rate payments with each other, based on a specific principal amount. Using detailed examples, an expert will review:

  • The purpose of derivatives, required documentation, and different types of hedging instruments
  • Accounting for fair value and cash flow Interest Rate Swaps, with examples
  • Amendments in ASU 2017-12: Targeted Improvements to Accounting for Hedging Activities
Objective: 

To update financial professionals on how to account for fair value and cash flow interest rate swaps, using examples and a summary of amendments to ASU 2017-12: Targeted Improvements to Accounting for Hedging Activities.

Emphasis: 
  • The Purpose of Derivatives
    – Financial risk (credit, liquidity, market)
    – Pros, cons and costs of starting a hedging program
    – Fair Value Option
    – Qualifying for hedge accounting
    – Required documentation
  • Forward vs. Future Contracts
  • Accounting for Fair Value & Cash Flow Interest Rate Swaps with examples
  • Amendments in ASU 2017-12, which better align hedge accounting with a company’s risk management activities

Recognize the relative complexity of accounting for derivatives

Identify the authoritative guidance for accounting for derivatives

Identify the accounting entries applicable to a public business entity that enters into an interest rate swap to hedge a note payable it issued

Identify the criteria necessary for the use of the short-cut method for interest rate swaps by a public business
 

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Price: 
$99.00
Prerequisite: 

Basic knowledge of financial instruments and financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Overview.

CPE Credit: 
1.50
NASBA Field of Study: 
Accounting