Seminar  Workshop

Implementing the FASB’s New Hedge Accounting Standard Workshop 2018: A Simplified and Practical Approach to Hedge Accounting


Why You Should Attend

In this interactive Workshop participants will learn the details and mechanics of the FASB’s new hedge accounting standard.  Discussion and case studies will include changes to the designation and documentation requirements and the process of assessing hedge effectiveness, along with the revisions to the accounting and presentation for hedging activities.  This new hedge accounting guidance has two main goals: to simplify the application of hedge accounting and to better match the economics of hedging activities with the results of hedge accounting.  Through these goals companies can reduce the costs and complexities of using hedge accounting.  In addition, this standard creates opportunities for companies that previously avoided the complexities of hedge accounting to utilize the new standard to better match hedging strategy with accounting results. 

What You Will Learn

  • Transition dates and methods for adoption
  • The new hedge effectiveness assessment guidance
  • Quantitative initial expectation of effectiveness
  • Qualitative on-going effectiveness assessment process
  • Revisions to the short-cut method of assessing effectiveness
  • Hedging financial and non-financial risk components
  • Elimination of the requirement to measure and separately report hedge ineffectiveness
  • Revision to the accounting for fair value and cash flow hedges
  • Changes to hedge documentation requirements
  • Where hedge accounting may now be practical
  • Practical steps to implementation
  • Disclosures
  • ICFR issues in the new hedge model

What You Should Bring

To customize your Workshop experience and gain the most benefit from this interactive learning experience we recommend you bring information about how you currently apply hedge accounting and example transactions.

Who Should Attend

This Workshop is geared to financial reporting professionals who are involved in applying hedge accounting or who need to understand how hedge accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new hedge accounting will affect financial statements will benefit from this Workshop.

Program Level:
Overview

Intended Audience:
Financial reporting professionals involved in applying hedge accounting or who need to understand how hedge accounting affects their financial reporting.  In addition, professionals in other areas such as treasury, analysis and operations who need to understand how the new hedge accounting will affect financial statements.

Prerequisites:
Basic background in accounting for derivative instruments and the application of hedge accounting.

Advanced Preparation:
None


Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

9:00 An Overview of Changes to Derivative and Hedge Accounting
• Objectives of the new standard
• How the new standard impacts hedge accounting: what’s changed and what remains the same
• Key risks and pitfalls ?
• SEC comment areas


9:30 A Review and Refresher for Derivative and Hedge Accounting
• Definition of a derivative
• Embedded derivatives
• Accounting for derivative instruments
• Fair value hedge accounting – old vs. new model
• Cash flow hedge accounting – old vs. new model
• Foreign exchange risk hedge accounting – old vs. new model
• Overview and comparison of old and new hedging guidance
• Case study for hedge accounting review


11:00 Networking Break

11:15 Fair Value Hedging Accounting
• Documentation requirements and related changes
• Documentation in risk management policy ?
• Details of criteria to qualify for hedge accounting ?
• Benchmark interest rate and other interest rate hedging
• The importance of and how to assess effectiveness
• Changes in the timing of the initial assessment of effectiveness
• Changes in the on-going assessment of effectiveness
• When a qualitative method is appropriate for on-going assessment testing
• The “safety net” to allow long-haul effectiveness testing when short-cut is not used appropriately
• Changes in assessing effectiveness of fair value interest rate risk hedges
• Changes in the accounting and presentation of fair value hedges
• Entire change in hedged item and derivative recorded in same line item
• Example hedging transaction, strategy and implementation
• Example and case studies


12:15 Networking Luncheon

12:45 Fair Value Hedging Accounting (continued)


1:45 Cash Flow Hedges in Detail
• Documentation requirements and related changes
• Documentation in risk management policy ?
• Details of criteria to qualify for hedge accounting
• Component hedging
• Benchmark interest rate and other interest rate hedging
• Changes in the timing of the initial assessment of effectiveness
• Changes in the on-going assessment of effectiveness
• When a qualitative method is appropriate for on-going assessment testing
• The “safety net” to allow long-haul effectiveness testing when short-cut is not used appropriately
• Example hedging transaction, strategy and implementation ?
• Accounting and presentation changes
• Entire change in fair value of hedged item recorded in OCI
• No separate recording of hedge ineffectiveness
• Recording “recycling” of OCI in same line item as hedged item
• Comprehensive income treatment ?
• Examples and case studies


2:45 Networking Break

3:00 Cash Flow Hedges in Detail (continued)


4:00 Foreign Currency Hedges, Disclosures and Implementation Issues
• How foreign exchange fair value and cash flow hedges are affected by the new hedge standard
• Disclosures
• Qualitative and quantitative disclosures
• New tabular disclosure requirements
• Gathering information for disclosure requirements
• Accounting system impact
• Relationship to risk management strategy ?
• Questions and answers and concluding Issues ?

5:00 Adjourn




Instructor(s)
George M. Wilson, MBA, CPA ~ Director, SEC Institute, a Division of PLI
Program Attorney(s)
Robin D. Goldstein ~ Director & Sr. Program Attorney, PLI

New York City Seminar Location

PLI New York Center
, 1177 Avenue of the Americas, (2nd floor), entrance on 45th Street, New York, New York 10036. (800) 260-4754.

New York City Hotel Accommodations

Crowne Plaza Times Square Manhattan, 1605 Broadway (48th Street), New York, NY 10019 (212) 977-4000. When calling, mention Practising Law Institute. You can also make reservations online to access PLI's rates.

The Muse, 130 West 46th Street, New York, NY 10036. Please call reservations at 1-800-546-7866. When calling, please mention Practising Law Institute and Corporate Rate ID 786839408. In addition, you can book online at PLI Muse Hotel

Millennium Broadway Hotel, 145 West 44th Street, New York, NY 10036. Please call reservations at 1-800-622-5569. When calling, please mention Practising Law Institute. In addition, you can book online at PLI Millennium Hotel .

 Hyatt Times Square, 135 W. 45th Street, New York, NY 10036. For reservations, please call (646) 364-1234. When calling mention rate code CR56218 or Practising Law Institute.

General credit information about this format appears below. For credit information specific to this program, please choose your jurisdiction(s) in the Credit Information box on the right-hand side of this page.


U.S. MCLE States

Alabama:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Alaska:  All SEC Institute products can fulfill Alaska’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Arizona:  SEC Institute’s workshops qualify as “interactive CLE” credit. There is no limit to the number of credits an attorney can earn via interactive CLE programs.

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California:  SEC Institute’s workshops qualify as “participatory” credit. There is no limit to the number of credits an attorney can earn via participatory programs.

Colorado:  All SEC Institute products can fulfill Colorado’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Connecticut: Effective January 1, 2017, all SEC Institute products can fulfill Connecticut’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

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Florida:  All SEC Institute products can fulfill Florida’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

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Maine:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

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Missouri:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Montana:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Nebraska:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

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New Hampshire:  All SEC Institute products can fulfill New Hampshire’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

New Jersey:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New Mexico:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

New York

Experienced Attorneys:  All SEC Institute products can fulfill New York’s CLE requirements for experienced attorneys. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Newly Admitted Attorneys: Select transitional SEC Institute workshops can be used to fulfill the requirements for newly admitted attorneys. Please check the “Credit Information” box on the program page to ensure credit is approved. All credit categories may be earned via transitional SEC Institute workshops.

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North Dakota:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Ohio:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oklahoma:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Oregon:  All SEC Institute products can fulfill Oregon’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Pennsylvania: SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Puerto Rico:  All SEC Institute products can fulfill Puerto Rico’s CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Rhode Island:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

South Carolina:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Tennessee:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Texas:  All SEC Institute products can fulfill Texas’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Utah:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Vermont:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Virgin Islands:  All SEC Institute products can fulfill the Virgin Islands’ CLE requirements. There is no limit to the number of credits an attorney can earn via SEC Institute products.

Virginia:  SEC Institute’s workshops qualify as “live interactive” credit. There is no limit to the number of credits an attorney can earn via live interactive programs.

Washington:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

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Wisconsin:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.

Wyoming:  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of credits an attorney can earn via workshops.


CPD Jurisdictions

British Columbia (CPD-BC):  SEC Institute’s workshops qualify as “real-time” credit. There is no limit to the number of credits an attorney can earn via real-time programs.

Ontario (CPD-ON):  SEC Institute’s workshops qualify as “interactive” credit. There is no limit to the number of credits an attorney can earn via interactive programs.

Quebec (CPD-QC):  SEC Institute’s workshops can fulfill Quebec’s CPD requirements.

Hong Kong (CPD-HK):  SEC Institute’s workshops qualify as “live” credit. There is no limit to the number of points an attorney can earn via workshops.

United Kingdom (CPD-UK):  SEC Institute’s workshops can fulfill the United Kingdom’s CPD requirements.

Australia (CPD-AUS):  SEC Institute’s workshops qualify as “live” credit in all Australian jurisdictions. There is no limit to the number of credits an attorney can earn via workshops.


Other Credit Types

CPE Credit (NASBA): SEC Institute’s workshops qualify as the “Group-Live” delivery method.

IRS Continuing Education (IRS-CE):  SEC Institute’s workshops may fulfill IRS-CE requirements. To request IRS-CE credit, please notify PLI at plicredits@pli.edu of your request and include your Preparer Tax Identification Number (PTIN).

Certified Fraud Examiner CPE:  SEC Institute’s workshops may fulfill Certified Fraud Examiner CPE requirements. To request CPE credit or find out which programs offer CPE, please contact PLI at plicredits@pli.edu.

IAPP Continuing Privacy Credit (CPE):  SEC Institute’s workshops may fulfill Privacy CPE credit requirements.

HR Recertification (HRCI):  SEC Institute’s workshops may fulfill HR credit requirements.

SHRM Recertification (SHRM):  SEC Institute’s workshops qualify as "instructor-led" credit. There is no limit to the number of credits an SHRM professional can earn via instructor-led programs.

Compliance Certification Board (CCB):  SEC Institute’s workshops qualify as “live” training events. There is no limit to the number of credits a candidate or certification holder can earn via workshops.

Certified Anti-Money Laundering Specialists (CAMS):  SEC Institute’s workshops may fulfill CAMS credit requirements.

New York State Social Worker Continuing Education (SW CPE):  SEC Institute’s workshops may fulfill SW CPE credit requirements.

American Bankers Association Professional Certification (ABA):  SEC Institute’s workshops may fulfill ABA credit requirements.

Certified Financial Planners (CFP):  SEC Institute’s workshops may fulfill CFP credit requirements.

 

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