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Accounting for Derivatives (AFD)

Course Overview

The “AFD” module is aimed at providing participants with an overview of derivative products and a detailed understanding of the accounting procedures and processes required.

Course Objectives

  • AFD is structured to provide participants with an overview of the derivative products and a detailed understanding of their operations
  • the program will expose participants to the basic rules for derivative accounting, required entries for the various forms of derivatives and review of various accounting/regulatory standards
  • participants will realise the need for proper risk management tools in the Nigerian financial industry

Duration – 4 Days

Curriculum

Overview of Derivative Products
What are Derivatives?, Why use Derivatives?, Features of Derivatives

Understanding Financial Derivatives
Forwards, Futures, Swaps, Options, Structured Products, Issues in Trading Derivatives, Valuation of Derivatives

Interest Rate Derivatives
Accounting for FRAs, Accounting for Interest Rate Swaps, Accounting for CCIR Swaps

Foreign Exchange Derivatives I
Accounting for FX Forward Contracts, Accounting for FX Future Contracts

Foreign Exchange Derivatives II
Accounting for FX Options Contracts, Accounting for FX Swaps

Risks & Mitigants in Derivatives

Hedge Accounting
Definition & Types, Fair Value, Cash Flow, Definition & Types, Net Investment in Foreign Operations