JKR16

Accounting for Derivatives in Practice Under IFRS 9

September 18 – 19, 2017 • Toronto

Accounting for Derivatives in Practice Under IFRS 9 will give participants a deep understanding of derivatives accounting and the application of hedge accounting for hedges of interest rate, inflation, FX and commodity risks. Real cases will be used extensively to demonstrate the learning objectives, applying IFRS 9 step-by-step. The new requirements are contrasted with IAS 39 where relevant.

CPE Hours: Course – 12 hours

Accounting for Derivatives in Practice Under IFRS 9 will give participants a deep understanding of derivatives accounting and the application of hedge accounting for hedges of interest rate, inflation, FX and commodity risks. Learning is based on an intensive use of real cases, applying IFRS 9 step-by-step. The new requirements are contrasted with IAS 39 where relevant.

Case studies incorporate real-life client discussions, and cover the decision-making, documentation requirements, hedge effectiveness assessment and the accounting entries of a hedging strategy during its life. The course will examine the following types of hedges and issues:

  • Foreign exchange risk
  • Commodity risk
  • Interest rate risk including inflation risk
  • Credit risk
  • Convertible bonds
  • Embedded derivatives

 

Registration Fees

Registration
Options
Before
August 4,
2017
Before
August 18, 
2017
After
August 18, 2017
Accounting for Derivatives $2,199.00 + HST $2,299.00 +HST $2,399.00 +
HST
Both Course & Seminar $3,299.00 + HST $3,399.00 + HST $3,499.00 +
HST
IFRS 9 for Banks      $1, 099.00 + HST $1,149.00 + HST $1,199.00 + HST

Our HST Number: R862562543

Group Discount: Fourth Delegate FREE!

If three individuals from one organization register at the same time, a fourth person may also be registered to attend free of charge. The free registration must be of equal or lesser value than the paid registrations. Please contact us to arrange for attendance of larger groups.

Your Registration Includes

Registration fees include all conference materials, continental breakfast, lunch and refreshments. Parking and accommodation are not included.

FREE CONFERENCE WORKBOOK

As a registered delegate, you will receive a complete set of conference materials. These materials will serve as an invaluable guide, both during and after the event. The workbook will be distributed on the morning of the first day beginning at 8:00 a.m.

Supplementary Text Included in Course Fees

All participants receive a copy of  “Accounting for Derivatives – Advanced Hedging Under IFRS 9” Second Edition by Juan Ramirez.

Cancellation Policy

Substitutions may be made at any time. If you are unable to attend, please make cancellations in writing and fax to (416) 504-6978 prior to 5:00 p.m. on August 30, 2017. A credit voucher will be issued to you for the full amount, redeemable against any other Acumen conference. If you prefer, you may request for a refund of fees paid less $250 administration fee. Registrants who cancel after above date will not be eligible to receive any credits or refunds and are liable for the entire registration fees.

Confirmed delegates who do not cancel before August 30, 2017, and fail to attend will be liable for the entire registration fees.

Acumen Information Services reserves the right to change the date, location and content for the event(s) offered herein without further notice and assumes no liability for such changes.

Early Bird Registration Discount

Register prior to to August 18, 2017, and you will obtain the following additional savings:

Second delegate: $100  Discount
Third delegate: $150 Discount
Fourth delegate: FREE

Please indicate that you are eligible for this offer on the registration page or your registration form if you are mailing in your registration.

Location – Accommodation

The conference will be held at a convenient location in downtown Toronto. The venue for this event has not been finalized. Delegates will be notified by email once venue information is available.

Delegates can register at the Acumen service desk beginning at 8:00 a.m. on the morning of the first day of the conference. Registration fees do not include hotel accommodation or parking.

Program -  Day 1

Conceptual Framework and Accounting for Foreign Exchange Risk Hedges

Conceptual Framework

  • Introduction to IFRS 9
  • Interaction with other IFRS standards
  • Hedge accounting. Types of hedges: fair value hedge, cash flow hedge and net investment hedge

Introduction to FX Transactions

  • Types of FX exposures
  • Chronology of a FX transaction
  • Functional vs. presentation currency

Case Study: Hedging a Highly Expected Foreign Sale and Subsequent Receivable

  • Identification of the FX exposure
  • Challenges when justifying "highly expected" cash flows
  • Applying hedge accounting - hedging with an FX forward
  • Applying hedge accounting - hedging with a tunnel
  • Applying hedge accounting - hedging with a participating forward

Case Study: Hedging a Highly Expected Foreign Purchase

  • Identification of the FX exposure
  • Applying hedge accounting - hedging with an FX forward

Case Study: Net Investment Hedge

  • Translation of foreign operations
  • Identification of the FX exposure
  • Applying hedge accounting - hedging with an FX forward
  • Applying hedge accounting - hedging with cross-currency swaps

Accounting for Commodity Risk Hedges

Case Study: Commodity Hedging Challenges Faced by an Oil Company

  • What is different when hedging commodities risk
  • Derivatives vs. own use. Embedded derivatives
  • Short case studies to explain hedging challenges

Case Study: Hedging Gold Production

  • Own use application
  • Hedging gold production with a gold forward

Case Study: Hedging Commodity Inventory with Futures

  • Recognition of inventories
  • Applying hedge accounting: documentation, assessment, fair valuation and accounting entries

Case Study: Hedging Jet Fuel by an Airline

  • Hedging risk components
  • Applying hedge accounting - Airline hedging with a jet fuel call option
  • Applying risk components - Airline hedging with a crude oil call option

 

This two day course runs from 9:00 a.m. – 4:30 p.m. each day including lunch as well as morning and afternoon breaks.

Note: The accounting considerations set out in this seminar are based on the instructor's  interpretation of IFRS. Institutions that the instructor is affiliated to can therefore by no means be associated with his

Program - Day 2

Accounting for Interest Rate Risk Hedges

Case Study: Hedging a Floating Rate Liability with a Swap – Cash Flow Hedge

  • Recognition of financial liabilities. The fair value option
  • Accounting for floating rate bonds – the effective interest rate
  • Practical challenges of applying the regression analysis method
  • Applying cash flow hedge for a fixed to floating interest rate swap: documentation, effectiveness assessment, fair valuations and accounting entries

Case Study: Hedging a Floating Rate Liability with a Cap – Cash Flow Hedge

  • The treatment of options under IFRS 9
  • Applying cash flow hedge for the purchase of a cap: documentation, effectiveness assessment, fair valuations and accounting entries

Case Study: Hedging a Fixed Rate Liability – Fair Value Hedge

  • Accounting for fixed rate bonds – the effective interest rate method
  • Applying fair value hedge for a floating to fixed interest rate swap
  • Applying fair value hedge for a fixed to floating interest rate swap: documentation, effectiveness assessment, fair valuations and accounting entries

Case Study: Hedging a Future Issuance of a Fixed Rate Liability – Cash Flow Hedge

  • Applying fair value hedge for a floating to fixed interest rate swap: documentation, effectiveness assessment, fair valuations and accounting entries

Case Study: Hedging Inflation Risk

  • IFRS 9 guidelines on inflation risk hedging
  • The challenges of applying hedge accounting to hedge inflation related revenues

Other Topics

  • Other special interest rate risk hedging situations - short case studies
  • Hedging credit risk
  • Convertible bonds
  • Embedded derivatives
  • Actual challenges in implementing IFRS 9 hedge accounting

This two day course runs from 9:00 a.m. – 4:30 p.m. each day including lunch as well as morning and afternoon breaks.

Note: The accounting considerations set out in this seminar are based on the instructor's  interpretation of
IFRS. Institutions that the instructor is affiliated to can therefore by no means be associated with his

Ramirez 3-43Course Leader
Juan Ramirez

Juan Ramirez is a senior professional at Deloitte in London, working on
complex IFRS accounting and Basel III capital situations.

With an MBA from University of Chicago, Mr. Ramirez moved to London to
work at JPMorgan and later Lehman Brothers, Barclays Capital, Banco
Santander and BNP Paribas. He has devoted more than 20 years to marketing
structured derivatives solutions, including commodity, credit, equity, fixed
income and FX. Since the implementation of IFRS Mr. Ramirez has witnessed
the practical accounting issues related to these markets.

Mr. Ramirez is the author of  “Accounting for Derivatives”, “Handbook of Corporate Derivatives
and Equity Capital Markets” and the upcoming “Handbook of Basel III Capital” published by
Wiley.

Who Should Attend

This conference has been specifically designed for, and in consultation with, experts in accounting for financial institutions as well as standard setters. The event has been developed with the professional responsibilities of our audience as our focus. As well, auditors, financial advisors, analysts, lawyers and other advisory professionals would benefit from staying current on the information provided at this timely event. In particular, our experience indicates that individuals in the following positions would mostly likely be in attendance:

  • Chief Financial Officers
  • Chief Risk Officers
  • Chief Compliance Officers
  • VPs, Directors and Managers
    • Finance
    • Accounting
    • Financial Reporting
    • Regulatory Compliance
  • Controllers
  • Internal Auditors
  • Audit Committee Members
  • Corporate Counsel
  • Risk Managers
  • Audit and Assurance Professionals
  • Industry Regulators and Standard Setters
  • Financial Analysts
  • Corporate and Securities Lawyers

To obtain a copy of the brochure, please send a request to the email below or click on the image of the brochure on this page.

e-mail at info@acumeninformation.com

Comments from Past Delegates to Acumen Conferences

"…provided a very good high level summary of the key impacts of IFRS to financial institutions.”

Associate Chief Accountant, Bank of Montreal

“Presentations were clear even though topics were complex.”

Chief Financial Officer, Société Générale

“Best conference I’ve ever attended.”

Senior Manager, Enterprise Hedge Accounting and Derivative Reporting, Royal Bank of Canada

“Suffice it to say that the conference delivered on my expectations…A lot has been taken away from this conference…$ well spent…”

V.P. Risk Management Advisory, New Brunswick Credit Union Stabilization Board

“Finally a course that communicates true technical knowledge”,

Director, Operations Finance NAV Canada

“This seminar was fantastic – very informative and has some extremely interesting and knowledgeable speakers.”

Manager, Corporate Accounting Brascan Power

“Great balance between theory and practical application/issues. Perfect level of detail…”

Treasury Manager CHC Helicopter Corporation
“Speakers were very knowledgeable, materials were current…examples and materials were relevant and well presented.”

Derivatives Accountant, Agrium Inc.

To submit questions to be answered at the conference, please send us an email at this address at  info@acumeninformation.com