Understanding Derivatives and Hedge Accounting: A Simplified Guide for CPAs (Text Based Course) 2 CPE

This course provides CPAs with a comprehensive understanding of derivatives and hedging in financial management. Participants will explore the fundamentals of derivatives, their strategic role in risk management, and the differences between hedge accounting and traditional accounting methods. The course specifically covers fair value, cash flow, and net investment hedges, and discusses their practical applications. This course also addresses hedge accounting, including designation, documentation, and effectiveness testing.

Prerequisites

Learning Objective

• Identify derivatives' strategic role in financial risk management.
• Recognize differences between hedge accounting and traditional methods.
• Discover and distinguish fair value, cash flow, and net investment hedges in practice.
• Discover and determine key steps in hedge accounting: designation, documentation, and effectiveness testing.
• Identify and differentiate how fair value, cash flow, and net investment hedges mitigate financial risks.

Last updated/reviewed: Aug 07, 2024