Derivatives and hedging in IFRS
  • Financial instruments and hedging tools - Be familiar with financial instruments and hedging tools (fair value hedge /cash flow hedge, titirisation, credit derivatives, hybrid debt)
  • Financial markets securities and cost of funds - Concepts of interest, yield rate, liquidity, inflation, capitalization, discounting, compound interest calculation, actuarial calculations
  • Financial risks: counterparty, liquidity, interest rates, exchange rates, marketable securities - Analysis, valuation, risk mapping and hedging strategy: - Counterparty risk: financial analysis and control of rating practices (internal, external) - Liquidity risk: ALM and group cash flow forecast - Interest rate risk: fixed and floating rate debt, bond issues - Foreign exchange risk: exports, imports, hedging, forward - Securities risk: dividends, acquisition and disposal of securities, trading room - Project & investment related risk Managing the identification and valuation of financial and non-financial risks
  • Financial statements and notes - Know the balance sheet, the income statement, the cash flow statement, the statement of changes in shareholders' equity, the OIC, the notes.
  • IFRS standards - International Financial Reporting Standards

Target audience

- Accounting managers
- Bankers / Account Managers
- Chartered Accountants, Statutory Auditors
- Consolidation and Accounting Directors
- Consolidation managers
- Financial managers

1 day


This training does not require any particular prerequisite.


– Understand how the main derivative financial instruments work and how they are used in a corporate environment (forwards, swaps, options, …)
– Know the principles of derivative valuation
– Be able to apply IFRS 9 to hedging transactions
– Be able to analyse the accounting impacts of those transactions on the financial statements, including disclosures

Detailed content

> Derivative financial instruments and their use in a corporate environment

– The three categories: forwards, swaps and optionsValuation principlesMain hedging strategies
– The main risks to hedgeForeign exchange on sales/purchasesRates and foreign exchange risks on debitsCommodity hedging

> Main hedging strategies

– The main risks to hedge
• Foreign exchange on sales/purchases
• Rates and foreign exchange risks on debits
• Commodity hedging

– Hedging firm risks (receivables and payables, inventories, firm orders) and contingent risks (budget, bids….)
– Implementing a hedging process in a group: hedging internal transactions

> Hedge accounting under IFRS 9

– Why implementing hedge accounting?

– Principles and mechanisms
• Fair Value Hedge (FVH)
• Cash Flow Hedge (CFH)
• Net Investment Hedge (NIH)

– Case studies

> Conditions for hedging under IFRS 9

– What can be hedged? What instruments to use?
– Documentation: requirements, impacts on internal procedures
– Hedge effectiveness and treatment of ineffectiveness

Why should you attend?

This training first provides an economic vision of hedging transactions: how they work, what they hedge. Secondly, it covers their accounting treatment.
This practical and intensive training provides the keys necessary to understand the transaction in place so as to apply IFRS 9 in real life. This training also allows to establish a constructive communication between Treasury and Consolidation or Accounting Departments.

Training methods and assessment

Technical presentation comes together with illustrations from real cases and numerous case studies (cases performed on spreadsheet during the session).
A final quiz assesses knowledge acquisition.
Assessment questionnaire.
A training certificate is delivered at the end of the session.

The trainer is available by e-mail to answer any follow-up questions participants may have.


1 020 € Excl. VAT – 1 224 € Incl. VAT


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Jonathan C.