Financial Instruments - Hedge Accounting


Cost for BPP PD Members: £239 + VAT 3 CPD Hours
(£299.00 + VAT for non BPP PD Members Click Here for details of our membership scheme).


This half day course is suitable for those working in the financial services sector or any other business sector with some exposure to financial instruments and wanting to gain a better understanding of the complex area of hedge accounting. .

Course content

A major objective of the IAS 39 hedge accounting regime was to neutralise the perverse outcomes of applying the standard’s basic provisions to the most widely used, commercially sound hedging strategies. The experience of many users is that IAS 39 hedge accounting has been at best only partially successful. For this reason and others, IFRS 9 has been introduced. The final version of IFRS 9 Financial Instruments was published in July 2014. Hedge accounting was the third phase of this immense project. The standard is effective for accounting periods beginning on or after 1 January 2018.

This course gives you an understanding of IAS 39 hedge accounting rules. Many entities use derivative financial instruments to hedge their exposure to different risks (for example interest rate risk, foreign exchange risk, etc.). IAS 39 (Financial Instruments: Recognition and Measurement) covers the accounting for derivatives under international accounting standards.

Under IAS 39 all derivatives are marked-to-market with changes in the mark-to-market being taken to the profit and loss account. This accounting treatment would therefore result in a significant amount of profit and loss volatility for many entities. This profit or loss volatility can be mitigated by invoking the optional rules of hedge accounting under IAS 39.

This course will also provide an overview of hedge accounting requirements under IFRS 9. See also Financial Instruments – IFRS 9 & the Replacement of IAS 39 for fuller details of IFRS 9.

Learning outcomes include obtaining a greater understanding of:

  • Mechanics of hedge accounting
  • Hedged items
  • Hedging instruments
  • Categories of hedge
  • Examples of hedges
  • Documentation
  • Hedge effectiveness
  • Discontinuing hedge accounting
  • Overview of IFRS 9

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."

Course Dates

Location Dates Time Availability  
London 18 Sep 2018 9:30 AM - 12:45 PM  Spaces Book Now
London 15 Oct 2018 9:30 AM - 12:45 PM  Spaces Book Now
London 20 Nov 2018 9:30 AM - 12:45 PM  Spaces Book Now

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