Derivatives and Hedging for Accountants

  • Credits: 10
  • Format: Self-Study eBook
  • Field of Study: Accounting | Finance
  • Author/Speaker: Michael Walker
Course ID: Advanced Preparation: Experience Level:
MW-101 None Overview
Published Date: Program Prerequisites: Other Course Formats:
© June 2020 Basic Understanding of Accountancy Self-Study eBook

A derivative is a financial product that derives its value based on an underlying asset, liability, or other variables (such as an interest rate, foreign currency, or commodity price). Derivatives have become very popular tools for “hedging” (i.e. reducing) financial risk; they have also become an increasingly standard item on big companies' balance sheets. Yet understanding how they work, what they are used for, and how they can affect the bottom line of business has proven to be a significant challenge for the accounting and auditing industries.

Topics include:
  • This course provides an “accountant-friendly” overview of financial risk management and derivative instruments.
  • This overview focuses on the various types of risks that impact financial markets today, as well as the four major categories of derivatives commonly used to hedge these risks (i.e. forwards, futures, swaps, and options).

Learning Objectives:

After reading the course material, you will be able to:

  • Define the various types of risks that impact financial markets.
  • Identify the unique characteristics of forwards, futures, swaps, and options.
  • Recognize appropriate hedging practices using derivative instruments.

Who Should Attend:
  • All Certified Public Accountants (CPAs)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s: