Real estate companies hedging FX differences from loans

Real estate companies traditionally use hedge accounting for foreign currency loans to balance the impact of foreign currency loan revaluations on their income statement. As advisors and auditors, we are familiar with the many ways how companies tackle hedge accounting. Sometimes, they proceed correctly; other times, they fail to comply with IFRS requirements on documentation and testing.

This course aims to teach companies to use hedge accounting for foreign currency loans correctly, in compliance with applicable regulations, and best suited to their result of operations and tax background.

Who are the intended participants?

Employees of finance, planning and treasury departments in real estate companies
Employees of accounting and controlling departments involved in the preparation of financial statements pursuant to CAS or IFRS
Employees involved in the preparation of documentation for hedge accounting

Programme

Hedge accounting framework summary
Application of hedge accounting to foreign currency loans
Documentation
Effectiveness
Method of updating tests of effectiveness; release of foreign exchange gains or losses to the income statement
Refinancing, instalment suspension, changes in hedged lease payments (or other items being hedged)

Benefits

You will:

Understand hedge accounting options and requirements relating to foreign currency loans
Learn how to test effectiveness by yourselves and prepare hedge accounting documentation
Better understand the hedging effects and the impact of unexpected events (loan repayment, sale of real property, change of lessees, etc.)