Application of hedge accounting in insurance companies

Starting from a theoretical basis, you will gradually get acquainted with the application of hedge accounting for different types of risks, in particular currency and interest rate risks.

Who are the intended participants?

• Finance, planning, treasury, or risk management department employees in insurance companies
• Accounting or controlling department employees involved in the preparation of financial statements under IFRS
• Employees involved in the preparation of hedge accounting documents

Programme

• Summary of hedge accounting rules (CAS, IAS 39, IFRS 9)
• Documentation structure and scope
• Effectiveness assessment methods
• Calculation of ineffectiveness, method of determining hypothetical derivative
• Costs of hedging – new possibilities/requirements for separating the intrinsic value of an option, forward element, or currency basis spread
• Application of hedge accounting on a group basis
• Currency risk hedging
• Interest rate risk hedging (assets and liabilities)

Benefits

During the course, you will:

• Obtain information on accessing the application of hedge accounting requirements for different risks specific to the insurance sector
• Learn to test effectiveness or prepare hedge accounting documentation on your own
• Learn about the (dis)advantages of the old (IAS 39, CAS) and new (IFRS 9) hedge accounting concepts
• Clarify the scope of changes required to systems and processes to set up hedge accounting.