Accounting for Derivatives and Hedges

3 Credits: Accounting


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Accounting for Derivatives and Hedges

Course Level
CPE Credits

3 Credits: Accounting

Course Description

Accounting for derivatives and hedges has a reputation for being among the most arcane in accounting. In Accounting for Derivatives and Hedges, we attempt to reduce this concern by focusing first on the nature of derivative instruments and how they function. After a clear and thorough presentation on derivatives, we proceed to the essentials of how to account for them. Topics covered include the nature of risk, hedging, risk management, and accounting for derivatives and major types of hedges.
You can find the answers to many questions about derivatives and hedges in this course, including:

  • What causes interest rate risk?
  • How can I mitigate foreign exchange risk without using derivative instruments?
  • What are the main features of futures, options, and swaps?
  • When are gains and losses stored in other comprehensive income?
  • What documentation is used to match a hedging item with a hedged item?
  • How can I tell if a hedge is effective?
  • What controls and policies can be imposed on hedging activities?
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Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify the main aspects of foreign exchange and interest rate risk along with the methods available to mitigate them.

Chapter 2

  • Note the accounting for derivative speculation and the classifications for hedges and investments.
  • Identify the contents of other comprehensive income.
  • Recognize the methods used to measure hedge effectiveness.
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Course Specifics

Course ID
Revision Date
May 24, 2023

There are no prerequisites.

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg Headshot

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …

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