Accounting for Derivatives: An Overview


Designed for the financial professional who needs an overview or refresher on derivatives accounting, this seminar focuses on the building blocks of this complex financial reporting topic. From a review of the most commonly used derivatives to a thorough explanation of hedge accounting, this seminar:

  • Identifies the basic characteristics of forwards, options, swaps and other derivatives
  • Analyzes the effects of fair value, cash flow and FX hedge accounting on financial statements
  • Examines topics that arise out of hedge accounting, including documentation, effectiveness testing and measurement
  • Uses a series of case studies and real-world examples to illustrate key concepts



To provide you with an overview of the products and the transactions involved in derivatives accounting under US GAAP. You’ll gain the knowledge to avoid pitfalls and understand the effects on financial statements and risk management strategies. You’ll learn to identify the characteristics of cash flow, fair value and net investment exposures and determine the appropriate accounting and reporting treatment for these potentially complex transactions.


  • Identifying the basic characteristics, risk management strategies and accounting requirements for derivatives
    – Interest rate, foreign exchange and commodities
    – Futures and forwards
    – Interest rate and other types of swaps
    – Caps, collars and floors
  • Developing a conceptual accounting and reporting framework for financial instruments under ASC 815 (FAS 133)
  • Expected changes to ASC 815
  • Understanding embedded derivatives and bifurcation
  • Examining the qualifying criteria and accounting requirements for:
    – Fair value hedges
    – Cash flow hedges
    – Net investment hedges
  • Reviewing the guidelines for use of the short cut method and critical terms matching
  • Effectiveness testing approaches
  • Documentation and disclosure requirements
  • Case studies for applying concepts

Basic knowledge of financial instruments and financial accounting and reporting.
Please bring a calculator.


No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: