The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.
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?
Pre-requisites
Please take note of the following admission requirements:
- Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
- Mandatory for video camera to be turned on throughout the course
- Display your official name (as per NRIC) in Zoom, to facilitate attendance taking
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
Schedule & Fees
Testimonial
Funding
1] NTUC Union Training Assistance Programme (UTAP)
UTAP (Union Training Assistance Programme) is an individual skills upgrading account for NTUC members.
To find out more on the UTAP funding and support validity period please click here.
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)
The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.
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?
Pre-requisites
Please take note of the following admission requirements:
- Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
- Mandatory for video camera to be turned on throughout the course
- Display your official name (as per NRIC) in Zoom, to facilitate attendance taking
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
Programme Facilitator(s)
