Accounting for Derivatives: Advanced Hedging under IFRS 9 (2nd Edition) explains the likely accounting implications of a proposed transaction on derivatives strategy, in alignment with the IFRS 9 standards. Written by a Big Four advisor, this PDF ebook shares the author’s insights from working with companies to minimise the earnings volatility impact of hedging with derivatives. This 2nd edition includes new chapters on hedging inflation risk and stock options, with new cases on special hedging situations including hedging components of commodity risk. This new edition also covers the accounting treatment of special derivatives situations, such as raising financing through commodity-linked loans, derivatives on own shares and convertible bonds. Cases are used extensively throughout the PDF textbook, simulating a specific hedging strategy from its inception to maturity following a common pattern. Coverage includes instruments such as forwards, cross-currency swaps, swaps, and combinations of standard options, plus more complex derivatives like knock-in forwards, range accruals, KIKO forwards, and swaps in arrears.
The derivative practitioner’s expert guide to IFRS 9 application
Under IFRS, derivatives that do not qualify for hedge accounting may significantly increase earnings volatility. Compliant application of hedge accounting requires expertise across both the standards and markets, with an appropriate balance between derivatives expertise and accounting knowledge. This ebook helps bridge the divide, providing comprehensive IFRS coverage from a practical perspective.
- Challenge the qualification for hedge accounting as the ultimate objective
- Become familiar with the most common hedging instruments from an IFRS 9 perspective
- Examine FX risk and hedging of earnings, dividends, and net assets of foreign subsidies
- Learn new standards surrounding the hedge of commodities, equity, inflation, and foreign and domestic liabilities
IFRS 9 is set to replace IAS 39, and many practitioners will need to adjust their accounting policies and hedging strategies to conform to the new standard. Accounting for Derivatives 2nd edition is the only book to cover IFRS 9 specifically for the derivatives practitioner, with expert guidance and practical advice.
Note: Only the PDF of the book is included. No online access codes are included in the purchase