Derivatives and other trading instruments under IFRS

Content of the training

• Theory of held-for-trading financial instruments in light of classification and measurement of financial instruments
• Settlement vs trade date accounting alternatives for purchases and sales of shares and bonds
• Examples for booking of trading with bonds and shares including short shales 
• Definition of derivatives under IFRS 9
• Special cases of derivatives from accounting perspective - contracts with credit risk, derivatives with non-financial items, loan commitments, derivatives with own shares, synthetic derivatives 
• IFRS principles for accounting for derivatives - Examples for measurement and booking of an interest rate swap, forward rate agreement, FX forward
• Booking examples for FX and interest options, bond forward  
• Booking examples for exchange traded derivatives – FX options and futures
• Treatment of derivatives cleared through central counterparties
• Theory of embedded derivatives  
• Examples of closely and non-closely related derivatives 
• Requirements for separation of embedded derivatives
• Examples for separation and bookings of embedded derivatives

After completing the training the participants will understand 

• theory of derivatives from accounting perspective
• measurement of derivatives at fair value
• principles for separation of embedded derivatives
• booking logic of OTC and exchange traded derivatives including embedded derivatives
• booking logic of bonds and shares held for trading

Target audience

• At banks and other financial institutions mainly employees at following departments: accounting, reporting, risk management, treasury, ALM, back office, middle office, controlling, internal audit, financial analyses of IFRS statements of customers 
• At non-financial companies mainly employees at following departments: accounting, reporting, risk management, controlling, cash management, internal audit
• Audit firms 
• Supervisors and enforcers in the area of financial institutions accounting