Financial Instruments: Hedge Accounting Under IFRS 9

Entities are exposed to many risks, but they can often mitigate their financial risks using financial instruments called derivatives. Such risks include interest rate risk, foreign currency risk, and price (or market) risk. But there's one small catch! Derivative instruments can create volatility in earnings because these instruments are normally recorded at fair value with changes in fair value recorded through profit or loss in accordance with IFRS 9. However, the underlying hedged item is accounted for using other standards which creates an accounting mismatch. Enter hedge accounting! Upon meeting strict criteria, hedge accounting may be used to reduce this income statement volatility. So why doesn't everyone do it? Because it's complex! This hedge accounting under IFRS 9 CPE eLearning course (1.5 CPE) walks through hedge accounting under IFRS 9 in a way that is easily understood.

IFRS 9 covers a variety of topics on accounting for financial instruments including classification and measurement, impairment, derivatives, hedging, and derecognition. This hedge accounting under IFRS 9 course will focus on hedge accounting. Topics covered in this course include:

• Introduction to hedging
• Types of hedging strategies
• Hedge accounting models
• Hedge qualification under IFRS 9

This hedge accounting under IFRS 9 CPE course is a must for any accountant or auditor who is involved in their company or client's hedge accounting process. It is easy to understand and full of practical examples and insights. And, with GAAP Dynamics, you know it will be fun!

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 By the end of this course, you should be able to: 

• Recall the concepts of economic hedging and hedge accounting
• Distinguish between the different types of hedging strategies
• Recall the accounting for qualifying hedges
• Recognize the hedge accounting qualification requirements