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.
