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Description

Derivatives under IFRS 9: Qualifying, Documenting and Accounting for Hedges

Build a hedge documentation file that stands up to audit scrutiny and reflect derivatives correctly in the statement of financial position

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

A company hedging a foreign-currency purchase or a floating-rate loan holds derivatives whose fair value moves at every reporting date. Without proper hedge documentation those movements flow straight through profit or loss and make reported performance difficult to read. Accounting teams inherit contracts negotiated by treasury without knowing whether they qualify for hedge accounting.

Two days to connect the financing transaction with its accounting treatment under IFRS 9: identifying embedded derivatives, qualifying the hedging relationship, drafting the required documentation, measuring ineffectiveness and producing the journal entries. Exercises are based on foreign exchange and interest rate contracts typical of industrial groups and trading companies in the region.

Learning objectives

  • Determine whether an instrument is a derivative and identify embedded derivatives in commercial contracts
  • Choose between cash flow hedge accounting and fair value hedge accounting
  • Draft the hedge documentation and define the method for measuring effectiveness
  • Account for fair value movements and reclassifications to profit or loss
  • Prepare the disclosures required on hedged risks

What makes this programme different

End-to-end treatment of a foreign exchange hedge, from the bank confirmation to the closing entries
Review of commercial contracts to detect embedded derivatives
A hedge documentation template built during the session and then tested on a floating-rate loan

Programme

1Derivatives and exposures

Linking the financing transaction to the accounts

  • Identifying a derivative and its components
  • Distinguishing economic hedging from hedge accounting
  • Detecting embedded derivatives in purchase and sales contracts
  • Mapping foreign exchange and interest rate exposures

2Qualifying the relationship

Selecting the hedge accounting model

  • Comparing fair value hedges and cash flow hedges
  • Defining the hedged item and the hedging instrument
  • Accounting for the hedge of a net investment in a foreign operation
  • Checking that the relationship meets the qualifying criteria

3Documentation and effectiveness

Evidencing the relationship at inception

  • Drafting the documentation at inception of the hedge
  • Establishing the economic relationship between hedged item and instrument
  • Choosing the method for measuring ineffectiveness
  • Dealing with rebalancing and discontinuation of the relationship

4Journal entries and disclosures

Reflecting the hedge in the financial statements

  • Recording movements in profit or loss and in other comprehensive income
  • Recycling deferred amounts when the hedged transaction occurs
  • Dealing with a forecast purchase that is no longer expected to occur
  • Preparing the notes on financial risk management

Who is it for

Financial controllers, group accountants, consolidation specialists, treasurers and auditors working with groups reporting under IFRS.

Prerequisites

Practical experience of accounting under IFRS and familiarity with commonly used financial instruments.

Dates & locations

36 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.