IFRS 9 — Accounting For Derivatives in Practice

Understanding the Practical Application of Hedge Accounting to Real-life Hedging Strategies.

September 19-20, 2022 – Toronto

CPE – 12.5 hours

This course 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 intense use of real cases, applying IFRS 9 step-by-step. Complex topics such as the treatment of options are covered in detail. The treatment of the fair value option is compared to the application of hedge accounting.

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.

Register

Delegate Comments

“…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.

Juan Ramirez is a Vice President and senior professional at Deutsche Bank in London. Previously, he worked 8 years at Deloitte LLP in London, advising clients on IFRS 9 and Basel III/IV issues. Juan is involved in all elements of IFRS 9 and bank regulatory capital. On hedge accounting, Juan is one of the best-known professionals having trained hundreds of risk management practitioners over more than a decade.

With an MBA from the University of Chicago, Mr. Ramirez moved to London to work at the commodities trading desk at JPMorgan. Later he joined the derivatives sales teams at Lehman Brothers, Barclays Capital, Banco Santander and BNP Paribas. He has devoted more than 20 years to derivatives in front office positions, gaining a first-hand experience on market risk and hedging solutions.

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

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: Net Investment Hedge

  • Translation of foreign operations
  • Case study: France Telecom’s restructuring of foreign subsidiary
  • Applying hedge accounting – hedging with cross-currency swaps

Mini Case Studies: Special situations of FX hedges

  • Issues arising from hedging intragroup FX risks

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

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 Foreign Currency Bond with a Cross-currency swap – Cash flow hedge

  • Treatment of financial instruments denominated in a foreign currency
  • Applying cash flow hedge: 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 a Government Bond in the Liquid Asset Buffer (LAB)

  • Treatment of debt instruments at FVOCI
  • Applying fair value hedge for a fixed rate bond recognised at FVTOCI, covering the complex accounting entries in detail

Case Study: Hedging Inflation Risk

  • IFRS 9 guidelines on inflation risk hedging

Case Study: Challenges of applying hedge accounting to hedge inflation-related revenues

  • The Fair Value Option and Credit Risk Hedging
  • Fair value option vs. hedge accounting
  • Hedging credit risk

Case Study: Macro Hedging – Fair Value Hedge (IAS 39)

  • Steps in the application of macro hedging
  • Challenges from its application

Other Topics

  • Other special interest rate risk situations – short case studies
  • Hedging credit risk
  • Hybrid instruments. Treatment of embedded derivatives

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

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.

Registration Options Before August 2, 2022 Before August 16, 2022 After August 16, 2022
IFRS 9 – Accounting for Derivatives in Practice $2,199.00 + HST $2,299.00 + HST $2,399.00 + 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.

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 or email to info@acumeninformation.com prior to 5:00 p.m. on September 5, 2022. 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 September 5, 2022, 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.

Register prior to August 17, 2022, 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.

The conference will be held at a convenient location in downtown Toronto. Venue information and special conference accommodation pricing details will be provided upon confirmation of the venue.

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.

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

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 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.

Email at info@acumeninformation.com

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

Limited sponsorship and exhibition options are available for this event, including

• Cocktail reception
• Luncheon sponsorship
• Breakfast sponsorship
• Booth/exhibit space

For more information, or to check availability,
please contact us by phone at (416) 504-6952
or by e-mail info@acumeninformation.com

SIGN UP FOR OUR MONTHLY NEWSLETTER

Sign Up Here