||Field Of Study
|Interactive Self Study
||Michael Walker, CPA
Derivatives & Hedging for Accountants:
A derivative is a financial product that derives its value based on an underlying asset, liability or other variable (such as an interest rate, foreign currency or commodity price). Derivatives have become very popular tools for “hedging” (i.e. reducing) financial risk; they have also become an increasingly standard item on big companies' balance sheets. Yet understanding how they work, what they are used for and how they can affect the bottom line of a business has proven to be a significant challenge for the accounting and auditing industries.
This course provides an “accountant-friendly” overview of financial risk management and derivative instruments. This overview focuses on the various types of risk that impact financial markets today, as well as the four major categories of derivatives commonly used to hedge these risks (i.e. forwards, futures, swaps and options).
Who Should Attend: CPAs
Chapter 1: INTRODUCTION TO DERIVATIVES AND HEDGING
Chapter 2: FORWARDS
Chapter 3: FUTURES
Chapter 4: SWAPS
Chapter 5: OPTIONS
• Define the various types of risk that impact financial markets.
• Identify the unique characteristics of forwards, futures, swaps and options.
• Recognize appropriate hedging practices using derivative instruments.