This document discusses hedge accounting under IFRS 9. It defines hedge accounting and its qualifying criteria. It describes the three types of hedging relationships - fair value hedges, cash flow hedges, and hedges of a net investment. It explains how to account for qualifying hedges and the required disclosures. Key differences between IAS 39 and IFRS 9 are noted, making IFRS 9 better aligned with risk management objectives.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
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Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
The Indian Accounting Standards were revised in September 2016.
This presentation tells about the AS 7 on Cash Flow Statement.
Valuation of shares, nature of shares, factors affecting shares, need for valuation of shares, method of valuation of shares, net asset based method, yield based method, fair value method
The ScottMadden Energy Industry Update, the twice-per-year report issued by energy consulting firm ScottMadden. This particular edition takes a close look at the natural gas industry--in particular how ever-increasing gas resources can find adequate infrastructure to make their way to market.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
The Indian Accounting Standards were revised in September 2016.
This presentation tells about the AS 7 on Cash Flow Statement.
Valuation of shares, nature of shares, factors affecting shares, need for valuation of shares, method of valuation of shares, net asset based method, yield based method, fair value method
The ScottMadden Energy Industry Update, the twice-per-year report issued by energy consulting firm ScottMadden. This particular edition takes a close look at the natural gas industry--in particular how ever-increasing gas resources can find adequate infrastructure to make their way to market.
This presentation explains the reason behind occurence of Demonetization in India on 8 November, 2016. The presentation uses game theory as a tool to explain the reason behind creation of black money in the system followed by steps to eradicate it eventually leading to demonetization.
Chance for Change is an event led by MSLGROUP in partnership with Sciences Po. Together with Millennial leaders and speakers from some of the world’s leading companies, we will consider how young people, in their roles as consumers, workers and innovators, can lead the response to climate change.
MSLGROUP units Salterbaxter MSLGROUP and Publicis Consultants MSLGROUP have been part of a global collaboration for the event.
For more details about this initiative visit:
http://bethechance.com
https://twitter.com/bethechance
These slides tell you Demonization was really a success or a real Failure. These slides will help you in understand the Parts of demonetization and also SWOT analysis of demonetization.
Demonetization has been a bold step of our present Government. The real result of it on our nation will be seen in coming year. But here is my study on immediate effects of demonetization on various sectors. I hope it helps..
The blog provide some key insights on the subject – as to how to compute EIR for fixed or floating rate instruments, how to compute EIR for products which involves both interest income and fee income, what are the challenges which banks might face while computing EIR, what are the operational simplifications which banks might consider while computing EIR.
The Financial Accounting Standards Board (FASB) released its long-awaited improvements to ASC Topic 815, Derivatives and Hedging in late August. The hedging project began as a significant overhaul to hedge accounting as proposed in 2008 and 2010 Exposure Drafts. However, upon reactivating the hedging project, the FASB determined such broad based changes were not necessary; rather, several targeted improvements could achieve the objectives.
These amendments, provided in Accounting Standards Update (ASU) 2017-12, are designed to address concerns expressed by preparers and users of financial statements regarding difficulties in applying hedge accounting as well as the clarity with which hedging activities are presented in the financial statements.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Financial Instruments;, Hedging Accounting
1. Al-Azhar University Of Gaza Faculty Of Economic & Administrative Sciences Accounting Department Financial Instruments;Hedging Accounting Prepared by: Amjad Issa Taha Omar Jamal AbuShaaban Shady Emad Al-Dalou Supervised by: Dr. EmadAbuShaaban May, 2011
2. Contents 1 3 5 2 4 IFRS 9 Hedge Accounting Accounting for Qualifying Hedges Hedges of a Group of Items Disclosures Conclusion
3. Part 1: IFRS 9 Hedge Accounting;Introduction and Overview
4. Hedge Accounting Hedge accounting is a mechanism that allows entities to reflect the results of some risk management activities in the financial statements. This is achieved by changing the timing of the recognition of gains and losses to enable the link between a hedged risk and the instrument providing the hedge to be reflected.
5. Hedging instruments A financial asset or a financial liability measured at fair value through profit or loss maybe designated asa hedging instrument. For hedge accounting purposes, only contracts with a party external to the reporting entity can be designated as hedging instruments.
6. Hedged items A hedged item can be a recognized asset or liability, an unrecognized firm commitment, a highly probable forecast transaction or a net investment in a foreign operation. A hedged item must be reliably measurable.
7. Hedged Effectiveness A Hedge Effectiveness is the extent to which changes in the fair value or cash flows of the hedging instrument offset changes in the fair value or cash flows of the hedged item. Under IAS 39; A highly effective hedge would offset at least 80% of the change & no more than 125%.
8. Qualifying Criteria for Hedge Accounting A- The hedging relationship consists only of eligible hedging instruments and hedged items. B- At the inception of the hedge there is formal designation and documentation of the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge.
9. Qualifying Criteria for Hedge Accounting C- The hedging relationship meets the hedge effectiveness requirements. A hedging relationship meets the hedge effectiveness requirements if it: Meets the objective of the hedge effectiveness assessment; and Is expected to achieve other than accidental offsetting.
11. Accounting For Qualifying Hedges There are three types of hedging relationships: Fair value hedges. Cash flow hedges. Hedges of a net investment in a foreign operation.
12. Fair value hedges A hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular risk and could affect profit or loss.
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15. Fair value hedges The ineffective portion of the gain or loss from remeasuring the hedging instrument and the hedged item shall be transferred from other comprehensive income to profit or loss.
16. Cash flow hedges A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.
17. Cash flow hedges An example of a cash flow hedge is the use of a swap to change floating rate debt to fixed rate debt (i.e. a hedge of a future transaction in which the future cash flows being hedged are the future interest payments).
18. Cash flow hedges It shall be accounted for as follows: The separate component of equity associated with the hedged item (cash flow hedge reserve) is adjusted to the lower of the following: The cumulative gain or loss on the hedging instrument from inception of the hedge. The cumulative change in fair value of the hedged item from inception of the hedge.
19. Cash flow hedges The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognized in other comprehensive income. Any remaining gain or loss (i.e. hedge ineffectiveness) is recognized in profit or loss.
20. Cash flow hedges When an entity discontinues hedge accounting for a cash flow hedge it shall account for the amount that has been accumulated in the cash flow hedge reserve, as follows: If the hedged future cash flows are still expected to occur, that amount shall remain in the cash flow hedge reserve until the future cash flows occur. If the hedged future cash flows are no longer expected to occur, that amount shall be reclassified from the cash flow hedge reserve to profit or loss.
21. Hedges of a net investment in a foreign operation Hedges of a net investment in a foreign operation: is the amount of reporting an entity interest in the net assets of that operation. Including a hedge of a monetary item that is accounted for as part of the net investment, shall be accounted for similarly to cash flow hedges.
24. Hedges of a Group of Items Eligibility of a group of items as the hedged item: It consists of items that individually are eligible hedged items. The items in the group are managed together on a group basis for risk management purposes.
25. Hedges of a Group of Items For the purpose of cash flow hedge accounting only, any offsetting cash flows in the group of hedged items, exposed to the hedged risk, affect profit or loss in the same and only in that reporting period.
26. Hedges of a Group of Items Presentation: For a hedge of a group of items with offsetting hedged risk positions that affect different line items in the income statement; any hedging instrument gains or losses recognized in profit or loss shall be presented in a separate line from those affected by the hedged items. For assets and liabilities that are hedged together as a group in a fair value hedge, the gain or loss on the assets and liabilities shall be recognized in the statement of financial position.
28. Disclosure Hedge accounting disclosures shall provide information about: An entity’s risk management strategy and how it is applied to manage risk; How the entity’s hedging activities may affect the amount, timing and uncertainty of its future cash flows; and The effect that hedge accounting has had on the entity’s statement of financial position, statement of comprehensive income and statement of changes in equity.
30. Key differences between IAS 39 and IFRS 9 Risk Management IAS 39 Not necessarily linked to the objectives of hedge accounting IFRS 9 is more closely to the objectives of the hedge accounting.
31. Key differences between IAS 39 and IFRS 9 Hedged Item IAS 39 Items can only be hedged in their entirety IFRS 9 Risk components can be eligible hedged item
32. Key differences between IAS 39 and IFRS 9 Effectiveness Assessment IAS 39 Changes to hedge relationship would result in mandatory de-designation IFRS 9 Changes to hedge relationship may result in rebalancing of the hedge ratio
33. Key differences between IAS 39 and IFRS 9 Fair Value Hedge IAS 39 Hedged item being adjusted to reflect the offset achieved by the hedge relationship IFRS 9 Effect of hedge accounting will be reflected as a separate balance sheet line item
34. Why is it better to shift to the use of IFRS 9?? Improved ability to align accounting with the company’s business model for managing financial assets. Help companies better reflect their hedging activities on their financial statements . Reduce complexity.