Introduction:
Over the recent past, players in the financial services sector have been exposed and cautioned about the vulnerabilities of financial instruments. There is a lot of talk about how such vulnerabilities of financial instruments have been abused and the growing evidence of various Corporates falling as a result. The risk of money-laundering through financial instruments has been an on-going debate. As a result, many regulators in the financial system have enforced strict regulations including adherence to the International Financial Reporting Standards (IFRS) framework.
ICPAK has organized this Workshop to provide an elaborate understanding on the various types of financial instruments, the accounting methods for each, and get up-to-date on latest developments in the relevant standards. This one-day workshop will provide in-depth illustration and explanation of the requirements for reporting of Financial Instruments while utilizing practical examples.
Learning Objectives:
- Good understanding of key concepts on financial instruments including derivatives
- Presentation of financial instruments
- Classification, recognition, measurement, de-recognition and impairment of financial instruments
- Accounting for changes in foreign exchange rates impacting financial instruments
- Hedge accounting – fair value and cash flow methods with case studies
- Analysis of the Guidance Note on accounting for derivative contracts
Topics to be covered:
Session 1 – Basic concepts of derivative instruments
- What are derivatives and why we need them
- Meaning of Forward, Futures and options with focus on equity
- Pricing futures – Hedging & speculation
- Option basics: ITM, ATM, OTM, Exercise, Lapse
Session 2 – Advanced concepts on derivative instruments
- Greeks in options pricing – Black- Scholes model / Binomial model
- Put-call parity Accounting for equity and equity derivatives
- Exercise with practical problems Features of Interest Rate Derivatives
- Interest Rate Swaps – Interest Rate CAPs / Floors
- Interest Rate Collars / Reverse Collars
- Cross Currency Swaps Total Return Swaps Credit Default Swaps Fixed Income Securities FX
- Derivatives – FX Forwards – FX Options
Session 3 – Hedge Accounting
- Fair Value Hedge
- Cash Flow Hedge
- Case studies on Hedge Accounting; Guidance Note on accounting on derivative contracts
Target Audience:
Accountants in listed companies, pension scheme funds and insurance companies personnel; personnel of organizations applying full IFRS, audit practitioners and bankers; Statutory Auditors, Finance and Accounting Managers, Corporate Accountants, Internal Auditors; Regulators e.g. CBK; Export and Import Companies; Airlines; Article Trainees.
Workshop Charges:
The workshop will be held on Friday, 11th March 2016 at the Hilton Hotel from 8.30am to 4.30pm. Members in attendance will be awarded 7 CPD Hours. Charges are Kshs.8, 950 and Kshs.14, 950 for members and non members respectively.
