Derivative financial instruments and hedging transactions
Applying the new French rules
  • Company accounts under French GAAP - Know how to prepare company accounts in French GAAP.
  • 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.

Target audience

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

2 day

Prerequisites

This training does not require prerequisite, because it clarifies how hedging derivative financial instruments work and are valued before dealing with their accounting treatment.
Participants who regularly use derivative financial instruments do not need
to attend the first day of this training. To register for the second day only, contact us (Price: 1 050 € Excl. VAT).

Objectives

– Understand how the main derivative financial instruments work and are used in a company (forwards, swaps, options, …)
– Be able to identify hedging, optimization and speculative strategies
– Know the accounting treatment of these transactions according to the new French regulation

Detailed content

Day 1 – Derivative financial instruments and their use for hedging foreign exchange, interest rates and commodity risks

– Functioning of simple derivatives (forward purchase/sale, swaps, …)
– Plain or low complexity options (tunnels, accumulators, …)
– Hedging strategies for firm commitments and potential risks
– Adapting strategies when the risks change (maturity, amount, …)
– Instruments valuation principles
– How to verify the effectiveness of hedging transactions

Day 2 – Booking derivative instruments and hedging transactions in French standards

> Hedging transactions, with or without risk-taking, optimization strategies and speculative positions

– The various accounting treatments: how to get symmetry
– Differences with the previous treatment

> The notion of overall position on foreign exchange or commodity

> Documentation and disclosures

– How to obtain the information to be disclosed: fair value of derivatives, types of products, underlying documents…

Why should you attend?

The ANC regulation 2015-05 came into application in 2017. It modified significantly the accounting treatment of derivative financial instruments and hedging transactions without imposing all the constraints of IFRS.
This intensive practical training allows to review the main hedging transactions and instruments and to effectively implement the changes required in the individual as well as in the consolidated statements.

Training methods and assessment

Technical presentation accompanied with illustrations from real cases and numerous practical cases with accounting entries.
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.

Price

1 840 € Excl. VAT – 2 208 € Incl. VAT

Médias

Témoignages

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Jonathan C.
Entreprise
Formation