Hedge Accounting Basics: What You Need to Know (Course Id 2411)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs seeking to understand hedge accounting.

• What is this course about or what problem does this course solve?
  The course explains hedge accounting, addressing its key distinctions from traditional accounting and detailing practices such as fair value, cash flow, and net investment hedges.

• How can the knowledge from this course be used?
  Learners will be able to identify and apply hedge accounting techniques, including designation, documentation, and effectiveness testing of hedge strategies.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding hedge accounting is vital for CPAs as it enables accurate financial reporting of hedging activities and compliance with accounting standards.

• When is this course relevant or timely?
  This course is relevant as of its 2024 release and offers up-to-date insights for professionals needing to refresh or expand their understanding of hedge accounting.

• How is a course like this consumed or used?
  The course is delivered as a self-study text-based program, requiring participants to complete a final exam with at least a 70% score to earn 1.0 CPE credit.

This course provides CPAs with an overview of hedge accounting.  This includes a discussion of the differences between hedge accounting and traditional accounting methods as well as information about fair value, cash flow, and net investment hedges.  This course also addresses hedge accounting, including designation, documentation, and effectiveness testing.

NASBA QAS - Text - NASBA Registry - 2411

Course Learning Objectives

• Distinguish fair value, cash flow, and net investment hedges in practice
• Determine key steps in hedge accounting: designation, documentation, and effectiveness testing
• Differentiate how fair value, cash flow, and net investment hedges mitigate financial risks

Chapter 1 - Hedge Accounting Basics: What You Need to Know

Course Learning Objectives

Course Overview

Hedge Accounting Overview

Hedge Accounting vs. Traditional Accounting

Types of Hedges

Fair Value Hedge

Cash Flow Hedges

Net Investment Hedges

Review Questions

Hedge Accounting Steps

Designation & Documentation

Effectiveness Testing

Conclusion

Review Questions

Glossary of Key Terms