Announcements

Accounting for Derivative Contracts

2017 promises to be an important year for derivative users, as significant modifications to the related accounting literature are on the horizon. This course offers the guidance necessary for a smooth transition from the old to the new.

While the basic orientation of the original standard still applies, the new material -- the focus of the seminar -- may allow for some expansion of eligible “hedging relationships,” for which hedge accounting may reasonably apply. Additionally, the new rules also liberalize procedures relating to the assessment of hedge effectiveness, which, in turn will likely motivate modifying existing hedge documentation. Special attention is devoted to these topics.

The course is directed to both treasury and accounting professionals. Although some derivatives may be highly sophisticated and esoteric instruments, the vast majority of hedgers use plain vanilla contracts in textbook applications for a host of financial exposures relating to interest rates, foreign exchange rates, and commodity price exposures. This seminar is designed for just these types of companies. It takes the mystery out of both the instruments and the accounting.

While derivative users may legitimately apply alternative accounting treatments to common transactions, special hedge accounting is invariably preferred by most public companies. This preference largely derives from the fact that hedge accounting typically, makes the intent of the hedging activity transparent to readers of financial statements, and it also generally minimizes the volatility of reported earnings. This treatment, however, is not automatic. This seminar covers these prerequisite requirements for qualifying for hedge accounting and details how to satisfy them.

The course offers a foundation that covers plain vanilla derivative products (i.e, futures, forwards, options, and swaps) - how these contracts work as well as the associated accounting treatments, highlighting differences between the original standard and the new revisions. Following that foundation and coverage of the generic accounting requirements, we delve into the nuances relating to specific market sectors: interest rates, commodities and currencies.

Attendees will gain a clear understanding of how derivatives accounting rules are to be applied and how the resulting earnings, OCI allocations, reclassifications, and disclosure amounts should be calculated. Our "hands-on" case studies, woven through the course, have been designed to make these concepts and procedures accessible.

Date/Location:
5/23-5/24/2017 New York
6/26-6/27/2017 Chicago
9/25-9/26/2017 Dallas
CPE Credit:
16
Tuition:
$1,895 **

Venue and Hotel Details


Agenda

  • Introduction to Derivatives
  • ASC Topic 815 (FAS 133) Definitions
  • Alternative Accounting Treatments
  • Interest Rate Swap Case Study
  • Documentation Requirements
  • Disclosures
  • Review of FAS 52 Issues
  • Foreign Currency Hedging
  • Interest Rate Hedging
  • Recent Developments under U.S. GAAP and IFRS
  • Other Related Topics

Program Details

Prerequisite:   Baseline understanding of U.S. GAAP Accounting
Preparation:   None
Level of Knowledge:   Intermediate
Field of Study:   Accounting
Delivery Method:   Group Live, Instructor-Led Course

Course Leaders

Dr. Ira Kawaller, Founder, Kawaller and Co., a consultancy specializing in derivative use. 

This course is co-presented by a KPMG Professional with specialized knowledge in the subject matter.

Course Testimonials

“The class was really successful in that there was combined expertise in derivative accounting and derivative economics.” - VP Controller and CAO, Public Energy Company


  • Register Early and Save!*
    Reserve your seat in any session before midnight on May 1, 2017 and apply coupon code SPRG17WEBSITE at checkout to receive $100 off the purchase price.
  • Attend Any 2 Executive Education Courses Per Person and Save!*
    Apply coupon code COMBO300 at checkout to receive $300 off the combined purchase price.



    See other courses offered in the same week

  • Discounts Available for Groups of 3 or More!*
    For more information, call 201-505-6062 or email us-kpmglearning@kpmg.com.

* Discounts cannot be combined and must be applied at time of initial registration.

** Tuition price includes daily breakfast, lunch, and morning and afternoon refreshments.