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Description

Derivatives in Accounting: Qualifying, Documenting Hedges and Managing Tax Treatment

Translating a corporate hedging transaction into accounting entries and tax outcomes

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

The treasurer has hedged a foreign exchange exposure and the accounting team must now translate the transaction into entries. The classification of the instrument drives the entire treatment, yet no one is clear on who decides it. The hedge relationship documentation is still to be produced.

These two days are designed for accountants in industrial and commercial companies rather than financial institutions. You qualify a hedging transaction and assemble the documentation expected under IFRS. You post the entries at inception, during the life of the instrument and at settlement. Finally, you connect the accounting treatment with the tax treatment of the resulting gain or loss.

Learning objectives

  • Qualify a hedging transaction against the applicable accounting criteria
  • Assemble and draft the hedge relationship documentation
  • Account for the inception, ongoing measurement and settlement of a hedging instrument
  • Handle open positions and their measurement at the reporting date
  • Connect the accounting treatment with the tax treatment of the resulting gain or loss

What makes this programme different

Entries posted step by step on foreign exchange and interest rate transactions
Template hedge documentation file provided to participants
Full treatment of a hedge unwound ahead of maturity

Programme

1Qualifying the Transaction

Hedge or open position

  • Instruments commonly used by industrial companies
  • Criteria for qualifying a hedging relationship
  • Hedged item and hedging instrument
  • Respective roles of treasury and accounting

2Documenting the Hedge Relationship

The file that supports the treatment

  • Expected content of the hedge documentation file
  • Demonstrating hedge effectiveness
  • Traceability of treasury decisions
  • Points of attention in the event of an audit

3Recording the Transactions

From inception to settlement

  • Inception entries and off-balance-sheet commitments
  • Monitoring cash flows and premiums paid
  • Measuring positions at the reporting date
  • Early settlement and treatment of the resulting gain or loss

4Tax Treatment

When taxable income departs from accounting profit

  • Allocation of the result to the relevant financial period
  • Differences between accounting and tax treatment
  • Adjustments and off-ledger tracking
  • Disclosures to include in the notes

Who is it for

Accountants, accounting managers, consolidation specialists and treasurers in industrial and commercial companies using hedging instruments.

Prerequisites

Practical experience of general accounting and a working knowledge of basic financial instruments.

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.