Accounting for Interest Rate Swaps Self-Study Webinar
Overview
An integral part of fixed-market income, interest rate swaps are financial derivatives that companies use to exchange interest rate payments with each other, based on a specific principal amount. Using detailed examples, an expert will review:
- The purpose of derivatives, required documentation, and different types of hedging instruments
- Accounting for fair value and cash flow Interest Rate Swaps, with examples
- Amendments in ASU 2017-12: Targeted Improvements to Accounting for Hedging Activities
Objective
To update financial professionals on how to account for fair value and cash flow interest rate swaps, using examples and a summary of amendments to ASU 2017-12: Targeted Improvements to Accounting for Hedging Activities.
DETAILED LEARNING OBJECTIVES
• Recognize the relative complexity of accounting for derivatives
• Identify the authoritative guidance for accounting for derivatives
• Identify the accounting entries applicable to a public business entity that enters into an interest rate swap to hedge a note payable it issued
• Identify the criteria necessary for the use of the short-cut method for interest rate swaps by a public business
Emphasis
- The Purpose of Derivatives
– Financial risk (credit, liquidity, market)
– Pros, cons and costs of starting a hedging program
– Fair Value Option
– Qualifying for hedge accounting
– Required documentation - Forward vs. Future Contracts
- Accounting for Fair Value & Cash Flow Interest Rate Swaps with examples
- Amendments in ASU 2017-12, which better align hedge accounting with a company’s risk management activities
This course is included in the following passes:
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