Course Detail(BF016 : Derivative Products: Hedging, Speculation - Transaction Recording- Accounting Issues and Disclosure)

UTAP Funding

BF016 : Derivative Products: Hedging, Speculation - Transaction Recording- Accounting Issues and Disclosure

7.00 CPE Hours (Others)
Classroom

Approved for UTAP support for intakes conducted between 01 April 2019 – 31 March 2020.

NTUC members enjoy course fee support with up to $250 every year when you enroll for courses supported under UTAP (Union Training Assistance Programme). This excludes miscellaneous fees such as GST and registration fee etc. (Terms & Conditions apply)

For eligibility criteria or UTAP claims submission, please refer to the Funding tab.


Programme Objective

This one-day seminar focuses on the processing of transactions emanating from the fast growing derivative market. Among the products discussed are: Options, Futures, Currency Forwards, Interest Rate Swaps, Swaptions and Credit Default Swaps. The seminar takes the participant from the time the trade is made until it is settled. Along the way, terminology and forms unique to these products will be explained as to content and purpose.


As these derivatives use different underlying products, the properties of those products themselves are delved into, including the application of margin and delivery processes. The detailed accounting treatments will be provided and the related disclosure requirement. Short practical examples and case problems of hedging and hedge accounting will be provided

  • Identify the major types of derivatives used in hedging
  • Describe the basic rules of accounting for derivatives
  • Differentiate between speculation and hedging for accounting purposes
  • Design an effective hedge that qualifies for hedge accounting treatment
  • Describe the disclosure requirements for derivatives
  • Identify and account for fair value and cash flow hedges
  • Describe the nature and purpose of an interest rate swap
  • Account for derivatives used as hedges
  • Identify items that qualify for the FAS 133 scope exclusion
  • Discuss emerging issues and recent guidance

Programme Outline

Futures

  • Brief Description of Futures and Terminology
  • How futures contracts are traded with Numerical Illustrations
  • Hedging equity, currency, commodities and interest rate risks with Futures
  • Accounting at the Inception of contract, during Continuation of the contract, at the time of Final Settlement of or Squaring Up contract, for Open Interest as on Balance Sheet-Date
  • Reconciliation with Brokers
  • Issue in Futures valuation

Forwards

  • How Forward contracts are traded with practical illustrations
  • Forwards Versus Futures
  • Accounting for Forward with practical illustrations
  • Journal Entries
  • How to Record Realized Gain and Receivables for Gain and How to Remove Respective Cumulative Unrealized Gain
  • Valuation Issues and applications

Options

  • Brief Description and terminology
  • Hedging equity, currency, interest rate and commodities risks with Options
  • Key Option Strategies
  • Accounting for Options- Detailed Illustrations for Purchased and Written Options
  • Options Challenge (Valuation Issues)

 
Swaps

Interest Rate Swaps

  • Definition of an interest rate swap
  • Plain vanilla swaps
  • Characteristics and features of interest rate swaps
  • Why enter into a swap
  • Interest rate swap pricing

Risks Specific to Swaps

  • Identify the different risks associated with swaps

Other types of Swaps

  • Interest Rate Options: Caps, Other types of interest rate swaps
  • Credit Default Swaps

Credit Exposure in Swaps

  • How is exposure measured to counterparties
  • What type of limits are used to manage this risk

FAS 133

  • Explore the implications of FAS 133 for swaps


Currency Swaps

  • Define a currency swap
  • Terminology
  • Applications of currency swaps
  • Types of Currency Swaps: fixed-fixed, Floating-fixed, floating0-floating
  • Pricing and valuation

Floors and Collars

  • Definition of interest rate options
  • Pricing and application of caps, floors, and collars

Other Accounting Considerations For Derivatives and Hedging transactions on Financial statements

  • Speculation
  • Fair Value Hedge
  • Cash Flow Hedge
  • What is reported on Balance Sheet, Net Income and what is reported in Comprehensive Income?
  • How do the New Rules affect the Financial Statements?


Training Methodology
Lecture style, with Exercises/Case Studies

Closing Date for Registration
1 week before programme or until full enrolment  

Intended For

This training course is specifically designed for decision makers in all organizations and hence is involved in the management of risk derivatives, aimed mainly at: • CEOs, CFOs, COOs, Finance Managers • Auditors (Internal and External) • Accountants • Risk Control Consultants • Government Agencies dealing with Derivatives • Insurers, Brokers, Loss Adjusters

Competency Mapping

Others = 7.00 Hours

Schedule & Fees

Date & Time

04 Sep 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 374.50
For Non-Members: $ 449.40

Programme Facilitator(s)

Prof Malick SY, PhD

Venue

60 Cecil Street
ISCA House
Singapore 049709

Date & Time

28 Aug 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Date & Time

05 Oct 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Date & Time

22 May 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Testimonial

Funding

NTUC Union Training Assistance Programme (UTAP)
UTAP (Union Training Assistance Programme) is an individual skills upgrading account for NTUC members. NTUC member gets to enjoy UTAP funding 50% of the unfunded course fee capped at $250 every year. This excludes miscellaneous fees such as GST and registration fee etc.
 
This course is approved for UTAP support for intakes conducted between 01 April 2019 – 31 March 2020.
 
As UTAP is given on calendar year basis, and calculated based on year of training taken, it cannot be accumulated.
 

Eligibility Criteria
To be eligible for UTAP, the following conditions need to be met:

  • Maintained paid-up NTUC membership before course, throughout course duration and at the point of claim and;
  • Course by training provider must be supported under UTAP and training must commence within the supported period and;
  • Unfunded course fee must not be fully sponsored by company or other types of funding;
  • Unfunded course fee must be S$20.00 and above, and;
  • Member must achieve a minimum of 75% attendance for each application and sat for all prescribed examination(s), if any and;
  • UTAP application must be made within 6 months after course ends. 


To submit for UTAP claims, please visit http://skillsupgrade.ntuc.org.sg. Terms and conditions apply.
 
Should you have queries on the funding scheme, you can email to UTAP@e2i.com.sg or call NTUC Membership Hotline at 6213-8008.

Programme Facilitator(s)


Prof Malick SY, PhD

Prof Malick SY is the Managing Director of a financial consulting firm with offices in South East Asia. Specializing in Corporate Consulting and Risk Management, his expertise in these areas is recognized internationally. He has been a Director of Risk Management at the Kuala Lumpur Stock Exchange and has been member of the Singapore Exchange Corporate Advisory Committee in Derivatives (SGX-DT).

With more than 25 years of experience in financial consulting and advisory to many financial institutions in Europe, Asia and Australia, his corporate clients include DBS Bank (Singapore), Singapore Exchange (SGX), Credit Suisse (Singapore), Bursa Malaysia, Association of Insurance and Asset Management Companies (Malaysia). He has set up the risk management department for many companies in Asia. He was the course leader for the derivative compulsory courses in getting the Options, Futures licenses organized by the Stock Exchanges of Singapore and Malaysia.

Professor of Financial Management at the Royal Melbourne Institute of Technology (RMIT) University, Melbourne-Australia and a visiting Professor of Finance at the City University of New York (CUNY)-USA, his time is shared between graduate level teaching, research activities and consulting. His research interest is in risk management, banking and financial markets especially derivatives and foreign exchange.

He won the Chicago Board of Trade (CBOT-USA) award.

 

Approved for UTAP support for intakes conducted between 01 April 2019 – 31 March 2020.

NTUC members enjoy course fee support with up to $250 every year when you enroll for courses supported under UTAP (Union Training Assistance Programme). This excludes miscellaneous fees such as GST and registration fee etc. (Terms & Conditions apply)

For eligibility criteria or UTAP claims submission, please refer to the Funding tab.


Programme Objective

This one-day seminar focuses on the processing of transactions emanating from the fast growing derivative market. Among the products discussed are: Options, Futures, Currency Forwards, Interest Rate Swaps, Swaptions and Credit Default Swaps. The seminar takes the participant from the time the trade is made until it is settled. Along the way, terminology and forms unique to these products will be explained as to content and purpose.


As these derivatives use different underlying products, the properties of those products themselves are delved into, including the application of margin and delivery processes. The detailed accounting treatments will be provided and the related disclosure requirement. Short practical examples and case problems of hedging and hedge accounting will be provided

  • Identify the major types of derivatives used in hedging
  • Describe the basic rules of accounting for derivatives
  • Differentiate between speculation and hedging for accounting purposes
  • Design an effective hedge that qualifies for hedge accounting treatment
  • Describe the disclosure requirements for derivatives
  • Identify and account for fair value and cash flow hedges
  • Describe the nature and purpose of an interest rate swap
  • Account for derivatives used as hedges
  • Identify items that qualify for the FAS 133 scope exclusion
  • Discuss emerging issues and recent guidance

Programme Outline

Futures

  • Brief Description of Futures and Terminology
  • How futures contracts are traded with Numerical Illustrations
  • Hedging equity, currency, commodities and interest rate risks with Futures
  • Accounting at the Inception of contract, during Continuation of the contract, at the time of Final Settlement of or Squaring Up contract, for Open Interest as on Balance Sheet-Date
  • Reconciliation with Brokers
  • Issue in Futures valuation

Forwards

  • How Forward contracts are traded with practical illustrations
  • Forwards Versus Futures
  • Accounting for Forward with practical illustrations
  • Journal Entries
  • How to Record Realized Gain and Receivables for Gain and How to Remove Respective Cumulative Unrealized Gain
  • Valuation Issues and applications

Options

  • Brief Description and terminology
  • Hedging equity, currency, interest rate and commodities risks with Options
  • Key Option Strategies
  • Accounting for Options- Detailed Illustrations for Purchased and Written Options
  • Options Challenge (Valuation Issues)

 
Swaps

Interest Rate Swaps

  • Definition of an interest rate swap
  • Plain vanilla swaps
  • Characteristics and features of interest rate swaps
  • Why enter into a swap
  • Interest rate swap pricing

Risks Specific to Swaps

  • Identify the different risks associated with swaps

Other types of Swaps

  • Interest Rate Options: Caps, Other types of interest rate swaps
  • Credit Default Swaps

Credit Exposure in Swaps

  • How is exposure measured to counterparties
  • What type of limits are used to manage this risk

FAS 133

  • Explore the implications of FAS 133 for swaps


Currency Swaps

  • Define a currency swap
  • Terminology
  • Applications of currency swaps
  • Types of Currency Swaps: fixed-fixed, Floating-fixed, floating0-floating
  • Pricing and valuation

Floors and Collars

  • Definition of interest rate options
  • Pricing and application of caps, floors, and collars

Other Accounting Considerations For Derivatives and Hedging transactions on Financial statements

  • Speculation
  • Fair Value Hedge
  • Cash Flow Hedge
  • What is reported on Balance Sheet, Net Income and what is reported in Comprehensive Income?
  • How do the New Rules affect the Financial Statements?


Training Methodology
Lecture style, with Exercises/Case Studies

Closing Date for Registration
1 week before programme or until full enrolment  

Intended For

This training course is specifically designed for decision makers in all organizations and hence is involved in the management of risk derivatives, aimed mainly at: • CEOs, CFOs, COOs, Finance Managers • Auditors (Internal and External) • Accountants • Risk Control Consultants • Government Agencies dealing with Derivatives • Insurers, Brokers, Loss Adjusters

Competency Mapping

Others = 7.00 Hours

Programme Facilitator(s)

Prof Malick SY, PhD

Prof Malick SY is the Managing Director of a financial consulting firm with offices in South East Asia. Specializing in Corporate Consulting and Risk Management, his expertise in these areas is recognized internationally. He has been a Director of Risk Management at the Kuala Lumpur Stock Exchange and has been member of the Singapore Exchange Corporate Advisory Committee in Derivatives (SGX-DT).

With more than 25 years of experience in financial consulting and advisory to many financial institutions in Europe, Asia and Australia, his corporate clients include DBS Bank (Singapore), Singapore Exchange (SGX), Credit Suisse (Singapore), Bursa Malaysia, Association of Insurance and Asset Management Companies (Malaysia). He has set up the risk management department for many companies in Asia. He was the course leader for the derivative compulsory courses in getting the Options, Futures licenses organized by the Stock Exchanges of Singapore and Malaysia.

Professor of Financial Management at the Royal Melbourne Institute of Technology (RMIT) University, Melbourne-Australia and a visiting Professor of Finance at the City University of New York (CUNY)-USA, his time is shared between graduate level teaching, research activities and consulting. His research interest is in risk management, banking and financial markets especially derivatives and foreign exchange.

He won the Chicago Board of Trade (CBOT-USA) award.

 


Upcoming Schedule

Date & Time

04 Sep 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 374.50
For Non-Members: $ 449.40

Programme Facilitator(s)

Prof Malick SY, PhD

Venue

60 Cecil Street
ISCA House
Singapore 049709