Auditing Derivatives and Hedge Contracts Under ASC 815, 820 and Other Guidance

Mastering Key Challenges and Analysis Techniques for Swaps, Options and Other Financial Instruments

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, February 25, 2014

Recorded event now available

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Course Materials

This course will provide audit professionals with a solid understanding of the fundamentals for accounting of derivatives and hedges. The panel will help you identify the key issues, challenges and approaches to prevent or resolve missteps.


Audit professionals are expected to account for, analyze and/or value derivative instruments and hedge contracts in the review or preparation of financial statements. Advisors must understand and identify the basic characteristics, risk management strategies and accounting requirements for derivatives.

Our panel of experts will share their experiences, insights and best practices to help professionals avoid the most common, yet costly, mistakes when accounting for, analyzing and/or valuing derivative instruments like options and swaps. The panel will explain the various kinds of fair value, cash flow or net investment hedge contracts.

Professionals are guided by standards and guidance such as FASB's ASC 815 on accounting for derivatives and hedging and ASC 820 on fair value measurements. However, the intricacies and constant evolution with these financial instruments require a thorough understanding of the tough issues and complex concepts that can trip up even the most experienced audit professionals.

Listen as our panelists give you a fundamental grounding that will help you identify, measure, account for and value derivatives and hedge contracts, and best practices for avoiding common high risk mistakes.



  1. Basics of derivative instruments and hedge contracts
    1. Applicable standards and guidance
  2. Derivatives
    1. Basic characteristics
    2. Accounting techniques
    3. Assessing cash flows
    4. Measuring fair values
  3. Hedges
    1. Accounting techniques
    2. Measuring effectiveness
    3. Assessing impact on current-period earnings
  4. Best practices


The panel will review these and other key questions:

  • When is a derivatives contract subject to IRC 1256 vs. traditional accrual rules?
  • Recognize appropriate hedging practices using swaps.
  • Appropriate hedging practices using option contract.
  • Identifying the areas of highest risk in working with derivatives.

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Elvis Candelario
Elvis Candelario
Senior Manager
Rothstein Kass

Mr. Candelario is a Senior Manager based in the New York office of Rothstein Kass. He has experience with hedge funds,...  |  Read More

Michael Loritz
Michael Loritz

Managing Director and Shareholder
Mayer Hoffman McCann

Mr. Loritz has 14 years of audit and accounting experience for public and private company clients, primarily...  |  Read More

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