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 is often perceived as one of the most complex areas in accounting, presenting a significant challenge to professionals in the field. This course aims to demystify this challenging subject by starting with a comprehensive overview of derivative instruments and their functionalities. It then seamlessly transitions into the essentials of accounting for these financial instruments. Covering a range of topics from the nature of risk and hedging to risk management, the course provides clear explanations on handling derivatives and the major types of hedges. Participants will find answers to common questions such as managing interest rate and foreign exchange risks, understanding the key features of futures, options, swaps, and the intricacies of other comprehensive income. Additionally, the course covers the critical documentation required for hedging activities and provides insights into assessing hedge effectiveness. This course is designed for those seeking to gain a strong foothold in understanding and accounting for derivatives and hedges, turning a complex topic into manageable, practical knowledge.

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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
February 21, 2024

There are no prerequisites.

Advanced Preparation


Number of Pages

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, CPA, is a full-time book and course author who has written more than 300 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 …