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Feb 2017

Hedge Accounting: Proper Accounting Disclosure & Transaction Recording of Derivative & Hedging Products

Course Information

Start Date15 Feb 2017, Wednesday
End Date15 Feb 2017, Wednesday
Time09:00 am
Venue100 Orchard Road, Concorde Hotel Singapore
FeeS$780 | S$468 After PIC Grant of 40% Inclusive light refreshments and international buffet lunch
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Derivatives markets are highly diverse and sophisticated but are widely used by corporations as risk management and hedging tools. This practical one-day workshop is designed to demystify derivatives by explaining their characteristics, features, pricing and applications. More importantly it will cover detailed accounting treatments and the relevant disclosure requirement

An Accounting Approach to Hedging Corporate Financial Risk with Derivatives
  • Describe the fundamentals of derivative products, including their characteristics, features and their hedging applications
  • Discuss how derivatives are traded to hedge risk or for speculation.
  • Describe the basic rules of accounting for derivatives and design an effective hedge that qualifies for hedge accounting treatment
  • Describe the disclosure requirements for derivatives
  • Industry accepted standards in identifying and determining fair value and cash flow hedges
  • Identify items that qualify for the FAS 133 scope exclusion together with emerging risk management issues and recent guidance
Who Should Attend

Presented with practical examples and case problems of hedging and hedge accounting, this training course is designed for participants who are in a role that exposes them to derivatives products or who would like to achieve deeper understanding of how derivatives markets operate and hence is involved in the management of risks, aimed mainly at:

  • Finance & Accounts Managers, and Risk Managers and Officials responsible for Risk Management
  • Global Heads of Operational Risk, Heads of Risk Management, Heads of Audit, Operational Risk Analysts, Group Risk, Risk & Contingency Managers
  • Finance Directors, Compliance/Internal Auditors
  • Risk Control Consultants
  • Government Agencies dealing with Risks, as well as Government bodies regulating Risk Areas
  • Insurers, Brokers, Loss Adjusters

Prof. Malick is very well versed in the valuation techniques. A very informative session!”
VP Finance, Oil tanking Asia Pacific Pte Ltd

Tremendously impressed with Prof. Malick’s excellent combination of theoretical & practical knowledge. Always difficult to find & take time out of office / work – this was an absolutely valuable use of time!”  CEO, SG Fujitsu

Gain Valuable Insights from Leading Derivatives and Risk Management Expert, Prof Malick SY, PhD

Prof Malick SY is the Managing Director of a financial consulting firm with offices in South East Asia. Specializing in Corporate Consulting and Risk Management, his expertise in these areas is recognized internationally. He has been a Director of Risk Management at the Kuala Lumpur Stock Exchange and has been member of the Singapore Exchange Corporate Advisory Committee in Derivatives (SGX-DT).

With more than 25 years of experience in financial consulting and advisory to many financial institutions in Europe, Asia and Australia, his corporate clients include DBS Bank (Singapore), Singapore Exchange (SGX), Credit Suisse (Singapore), Bursa Malaysia, Association of Insurance and Asset Management Companies (Malaysia). He has set up the risk management department for many companies in Asia.

He was the course leader for the derivative compulsory courses in getting the Options, Futures licenses organized by the Stock Exchanges of Singapore and Malaysia. Professor of Financial Management at the Royal Melbourne Institute of Technology (RMIT) University, Melbourne-Australia and a visiting Professor of Finance at the City University of New York (CUNY)-USA, his time is shared between graduate level teaching, research activities and consulting. His research interest is in risk management, banking and financial markets especially derivatives and foreign exchange. He won the Chicago Board of Trade (CBOT-USA) award.

Key Outline


  • Brief Description of Futures and Terminology
  • How futures contracts are traded with Numerical Illustrations
  • Hedging equity, currency, commodities and interest rate risks with Futures
  • Accounting at the Inception of contract, during Continuation of the contract, at the time of Final Settlement of or Squaring Up contract, for Open Interest as on Balance Sheet-Date
  • Reconciliation with Brokers
  • Issue in Futures valuation


  • How Forward contracts are traded with practical illustrations
  • Forwards Versus Futures
  • Accounting for Forward with practical illustrations
  • Journal Entries
  • How to Record Realized Gain and Receivables for Gain and How to Remove Respective Cumulative Unrealized Gain
  • Valuation Issues and applications


  • Brief Description and terminology
  • Hedging equity, currency, interest rate and commodities risks with Options
  • Key Option Strategies
  • Accounting for Options- Detailed Illustrations for Purchased and Written Options
  • Options Challenge (Valuation Issues)


Interest Rate Swaps

  • Definition of an interest rate swap
  • Characteristics and features of interest rate swaps
  • Why enter into a swap
  • Interest rate swap pricing

Risks Specific to Swaps

  • Identify the different risks associated with swaps

Other types of Swaps

  • Interest Rate Options: Caps, Other types of interest rate swaps
  • Credit Default Swaps

Credit Exposure in Swaps

  • How is exposure measured to counterparties
  • What type of limits are used to manage this risk

FAS 133

  • Explore the implications of FAS 133 for swaps

Currency Swaps

  • Define a currency swap
  • Terminology
  • Applications of currency swaps
  • Types of Currency Swaps: fixed-fixed, Floating-fixed, floating0-floating
  • Pricing and valuation

Other Accounting Considerations For Derivatives and Hedging transactions on Financial statements

  • Speculation
  • Fair Value Hedge
  • Cash Flow Hedge
  • What is reported on Balance Sheet, Net Income and what is reported in Comprehensive Income?
  • How do the New Rules affect the Financial Statements?