Learning Objectives

• Learn about the fundamental concepts of netting and offsetting of derivatives accounting, including an overview of key accounting models and requirements.
• Understand how accounting requirements differ between cleared and bilateral OTC derivatives.
• Gain knowledge of offsetting criteria, what it means in legal and accounting terms and how it is applied to cleared and bilateral OTC derivatives.
• Understand how the metrics used to evaluate derivatives affect reporting in the balance sheet.
• Learn about fair value measurement requirements for accounting with practical examples.
• Gain an understanding of the accounting implications of various valuation adjustments and reserves, including CVA, DVA, FVA and XVA.
• Learn about the key hedge accounting models applied under IAS 39 and IFRS 9 and the requirements that must be met for these models to be used.
• Understand the most common hedge accounting issues that arise for different types of commodities transactions.
• Gain an understanding of portfolio hedge accounting requirements and likely future developments, including the emergence of the IASB’s Dynamic Risk Management based model and the operational complexities.
• Hear about the accounting treatment and latest developments in ESG-related instruments and crypto assets, and related derivatives.