Derivatives & Hedge Accounting

Course Contents

As financial risk management strategies emerge as corporate best practices, the need for an extensive hedge accounting is vital. This session seeks to address the requirements of FRS 139 Financial Instruments in relation to hedging. Speaker will illustrate with case studies.

Course Objectives

1. To comprehend the requirements of FRS 139 with regards to hedge accounting.
2. To be able to apply accounting treatment on various hedge treatments.

Course Outline

Session 1: About hedge accounting

• Criteria for Hedge Accounting
• Hedged Items
• Hedge Instruments
• Establishing hedging relationship.

Session 2: Qualifying Conditions for Hedge Accounting

• Documentation and designation
• Expectation of hedge being ‘highly effective’
• Highly probable forecasted transactions
• Reliably measure effectiveness testing
• Ongoing assessment of hedge as ‘highly effective’

Session 3: Accounting for Effective Fair Value Hedges

• Ongoing fair value hedging
• Adjustments to hedged items
• Discontinuing fair value hedging

Session 4: Accounting for Effective Cash Flow Hedges

• Ongoing cash flow hedging
• Recycling gains and losses from equity
• Discontinuing cash flow hedging

Target Audience : All
CPD Code : 081111KL1

Speaker’s Profile

Mr David Meow

David Meow is a Principal Consultant and Trainer for VIA Commerce Sdn Bhd. He is involved in training and consultancy in areas related to financial accounting, management accounting, and investment management. He has provided training and consultancy services to government–related regulatory bodies including Bank Negara Malaysia (BNM), Permodalan Nasional Berhad (PNB) and Securities Commission, Jabatan Perdana Menteri (ILKAP), financial institutions and corporations.

He is currently associated with the Securities Commission, Malaysia for several developmental projects. He is also involved in several programmes initiated by Permodalan Nasional Berhad Institute.

Besides training and consultancy, he is also teaches the Chartered Financial Analysts (CFA) programs in Kuala Lumpur, Singapore, Hong Kong and Vietnam. He has been a visiting lecturer to Sheffield University, a registered tutor for Hull University, and has lectured for several undergraduates and masters’ programs in the region.  He was also involved in facilitating several programs with an institution under the Ministry of Economy and Finance, Royal Kingdom of Cambodia.