Derivatives are evolving and new accounting requirements to manage risks have been developed to make derivatives markets safer and more efficient. 

This comprehensive two-day masterclass in accounting for derivatives is being run by ISDA with tutors from EYs senior accounting team. The masterclass will provide you with the essential knowledge you need to navigate this complex area. The focus on the first day will be to introduce you to the fundamental concepts behind accounting for derivatives, how entities use them, along with the netting and offsetting requirements and the principles of fair value. The course will cover the metrics used and the requirements for recognizing valuation adjustments such as credit valuation adjustment (CVA), debit valuation adjustment (DVA), funding valuation adjustment (FVA) and other valuation adjustments (XVAs).

The second day will be more advanced. You will learn about the different hedge accounting models including commodity derivatives and portfolio hedging. The course will also cover Dynamic Risk Management, which has the potential to significantly change existing practice. We will explore the complexities of field testing the model to make it operational. Finally, it will also cover latest developments, in accounting for environmental, social and governance (ESG) instruments and digital assets. 

Led by a team of senior industry practitioners and accounting specialists  this in-person course will equip professionals with a deep practical knowledge of core accounting issues and strategies, as well as insights into emerging trends reshaping the derivatives business. 

Have a question for our speakers? Submit your question to the speakers ahead of the conference and we will do our best to have them answered the day of the event. Questions can be submitted up to 48 hours prior to the conference.

ISDA ran a similar masterclass in London in Q4 2022 and the response from attendees was very positive. This suggested that others would benefit from the opportunity to build their knowledge of the accounting for derivatives. Hence, it was decided to offer the masterclass in Amsterdam.

This course is designed for those of all levels of seniority and experience and includes finance managers, treasury specialists and executives of financial institutions, regulators and corporates who need to understand the rules and strategies involved in accounting for derivatives. It is particularly relevant for: 

• Executives and finance managers covering ALM and treasury issues related to accounting and responsible for business and tactical initiatives looking to introduce strategic changes to their organization and who want to understand the role derivatives accounting can play.
• Mid- to senior-level functional managers working in finance, banking and other sectors such as energy or commodities, or those in central treasury functions of banks and large corporates, who are looking to gain an understanding of how derivatives are used to manage risk and how they affect business practice. 
• Front-office managers and those on sales desks, who need to understand accounting for derivatives in order to discuss implications with their clients, back office, managers and directors. 
• Individuals working in treasury roles who oversee aspects of financial management and advise on operational and fundraising activities and capital structure, who would like to better understand the role derivatives play in managing risk and how they are reported and accounted.
• Accounting, regulatory reporting and compliance specialists/officers who want to gain a clear understanding of derivatives accounting and reporting implications for their organizations and confirm how accounting for derivatives compares with other legal and financial requirements.
• Individuals in internal audit and accounting policy functions, who may lack direct financial management training and experience with derivatives and so will benefit from better understanding the role derivatives play in an organization and the way they are managed, reported and accounted.

• Learn about the fundamental concepts of netting and offsetting of derivatives accounting, including an overview of key accounting models and requirements. 
• Understand how accounting requirements differ between cleared and bilateral OTC derivatives.
• Gain knowledge of offsetting criteria, what it means in legal and accounting terms and how it is applied to cleared and bilateral OTC derivatives. 
• Understand how the metrics used to evaluate derivatives affect reporting in the balance sheet. 
• Learn about fair value measurement requirements for accounting with practical examples. 
• Gain an understanding of the accounting implications of various valuation adjustments and reserves, including CVA, DVA, FVA and XVA.
• Learn about the key hedge accounting models applied under IAS 39 and IFRS 9 and the requirements that must be met for these models to be used.
• Understand the most common hedge accounting issues that arise for different types of commodities transactions.
• Gain an understanding of portfolio hedge accounting requirements and likely future developments, including the emergence of the IASB’s Dynamic Risk Management based model and the operational complexities.
• Hear about the accounting treatment and latest developments in ESG-related instruments and crypto assets, and related derivatives.

• Registration must be received 24 hours prior to the event. Attendance is by pre-registration only, NO walk-ins will be accepted.
• All in-person attendees will be required to agree to a COVID-19 Safety Acknowledgement form at the time of registration. You can preview the form here.
• By registering you must agree to adhere to ISDA guidelines for attendance outlined in the policies on the registration form, subject to change in accordance with local government guidance and mandates.