Professional Training

IFRS Overview for Derivatives and Hedging

IASeminars, In London (+1 locations)
16 hours virtual or 2 days face to face
Next course start
Contact our team today to ask about our live, online course schedule. See details
Course delivery
Virtual Classroom
16 hours virtual or 2 days face to face
Next course start
Contact our team today to ask about our live, online course schedule. See details
Course delivery
Virtual Classroom
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Course description

IFRS Overview for Derivatives and Hedging

This IFRS course is available as a face to face event or as a virtual, online training!

It provides an in-depth review of the current IFRS accounting and reporting requirements for derivatives and hedging.

The IASB published the final version of IFRS 9 Financial Instruments in July 2014, incorporating the new chapter on general hedge accounting which was first published in November 2013. IFRS 9 replaces IAS 39 for annual periods beginning on or after 1 January 2018. The IASB also has a separate project on macro hedging and a Discussion Paper was published in April 2014. These changes will have a significant impact on financial and non-financial organizations and will make hedge accounting more widely available. It is important for entities to understand the implications of these changes.

The requirements for derivatives and hedging are explained in clear, simple language and illustrated with corporate annual reports and other real-world examples. Valuations, hedge documentation processes, effectiveness testing, and journal entry outcomes are explained and illustrated by the specialist instructor.

This program answers questions such as:

  • What are the requirements for hedge accounting?
  • How does classification of financial instruments affect the decision to use hedge accounting?
  • What is fair value?
  • What are the hedge accounting documentation requirements?
  • How is hedge effectiveness designed and tested?
  • How can hedge engineering work to achieve better results?
  • How are embedded derivatives identified and accounted for?
  • What are the principal similarities and differences between US GAAP and IFRSs in the area of derivatives and hedge accounting?

Upcoming start dates

1 start date available

Contact our team today to ask about our live, online course schedule.

  • Virtual Classroom
  • Online

Suitability - Who should attend?

This course is primarily designed for those who use derivatives and hedge accounting under IFRS in their company or are considering doing so in the future:

  • Accountants in an investment bank or treasury operation/internal audit in a bank
  • Individuals working in non-banking entities where they are considering hedge accounting for the first time
  • Industry controllers, external auditors, analysts and other finance professionals who are interested in learning about derivatives and hedge accounting

Outcome / Qualification etc.

After attending this course participants will be able to:

  • Understand the reasons why companies hedge
  • Construct a successful hedge and use hedge engineering to achieve better results
  • Measure hedge effectiveness and ineffectiveness
  • Identify and account for the following hedges: fair value hedges, cash flow hedges, net investment hedges and portfolio hedges of interest rate risk (macro hedges)
  • Identify and analyze embedded derivatives
  • Determine the appropriate treatment of embedded derivatives under IAS 39 and IFRS 9
  • Discuss the latest developments

CPE credits are available for all courses. 

Training Course Content

This course is designed to cover the key topics: 

  • Financial Instruments
    • Classification and measurement
    • Effective interest method
  • Derivatives
    • Analysis and examples of common derivatives (including options, interest rate swaps, currency swaps, forwards and futures)
      • Cash flows
      • Variations of ‘standard’ derivative contracts
      • Techniques for measuring fair values
    • Accounting for derivatives (IAS 39 and IFRS 9)
  • Embedded Derivatives
    • Analysis and examples of embedded derivatives in debt host contracts, equity host contracts, and purchase/sale contracts
    • Accounting for embedded derivatives
      • Determining the separation conditions under IAS 39
      • Allocating the initial carrying amount to embedded derivatives that are separated under IAS 39
      • Determining how embedded derivatives affect the ‘cash flow characteristics’ test under IFRS 9
  • Hedging
    • Analysis and examples of common hedging relationships
      • Hedged items
      • Hedging instruments
    • Definition and mechanics of fair value, cash flow and net investment hedges
    • Examples (commodity contracts, interest rate and forex risk exposures)
  • Hedge accounting (IAS 39)
    • Hedge documentation
    • Measuring and testing hedge effectiveness
    • Measuring and accounting for hedge ineffectiveness
    • Discontinuation of hedge accounting
  • Presentation and Disclosures (IFRS 7)
  • IFRS 9
    • New hedge accounting framework
    • Alignment with risk management policies
    • Hedged items
    • Hedging instruments
    • Effectiveness assessment and rebalancing
    • Recording hedge effectiveness
    • Group and net positions
    • Transitional issues and disclosures
    • Macro hedge accounting – April 2014 Discussion Paper

Why choose IASeminars

We've been training for 20 years.

50% of our business comes from returning clients.

We offer instructor-led training in international locations, over Zoom or in house.


The cost of this training course is £2,050 + VAT for face to face events and £1,850 + VAT for virtual events. 

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