IFRS 13 for financial instruments - hedge accounting and CVA/DVA


General information Programme Date & participation Location
 

IFRS 13 introduces a new definition of fair value. This has an impact on the fair value measurement of financial instruments in the balance sheet. Not only the counterparty’s credit risk has to be taken into account when valuing derivatives (‘CVA’), but also the entity’s own credit risk (‘DVA’). This can cause several practical implications and may also lead to hedge ineffectiveness. In this training the concept of CVA/DVA is explained in an intuitive way and practical guidance on valuation issues arising around this is given. In the second half of the training, the impact of CVA/DVA on hedge accounting and accounting for financial instruments in general is explained to highlight the risks of hedge ineffectiveness due to IFRS 13.

This training will provide you with a solid basis to understand and apply IFRS 13 new requirements in your organisation.
 

IFRS 13 – key considerations

IFRS 13 is mandatory for financial years commencing on or after 1 January 2013. Included in IFRS 13 are the following key considerations:

  • New definition of fair value;
  • Incorporation of credit risk in fair value measurement (CVA & DVA);
  • Principal / advantageous markets;
  • Disclosure requirements in excess of IFRS 7.

Following the training:

  • You will know more about the theory behind IFRS 13 and the impact of IFRS 13 on the fair value measurement of financial instruments;
  • You will have tools to incorporate counterparty credit risk and own credit risk in the fair value measurement of derivatives;
  • You will be able to comprehend the impact of IFRS 13 on hedge accounting;
  • You will understand the additional fair value measurement disclosure requirements to be included in the financial statements.

Who should attend?

The training is of interest to professionals with a background in finance or treasury responsible for accounting, treasury, reporting and/or controlling. Other interested parties are also welcome to attend.
 

Who are the trainers?

The trainers are professionals and members of the PwC Capital Markets and Accounting Advisory Services (CMAAS) group. CMAAS specialises in applying IFRS standards and assists clients with IFRS transitions and/or complex IFRS accounting topics on a daily basis.

  • Kees-Jan de Vries, Director PwC Capital Markets and Accounting Advisory Services
  • Mark Helmantel, Senior Manager PwC Capital Markets and Accounting Advisory Services

Programme

13:00 Welcome
13:15 Introduction to IFRS 13 (objectives, scope, timing)
14:00 Key considerations
15:30 Coffee break
15:45 Practical implications for derivatives (CVA/DVA)
16:30 Disclosure requirements
16:45 Questions & Answers
17:00 Drinks

You are welcome at our offices as of 12.30 pm. The training starts at 1 pm and ends at 5.00 pm with a drinks reception.

Date

  • 23 April 2014 - PwC Amsterdam

PE-hours Accountants

The training courses of the Academy meet the requirements for Permanent Education of the NBA. By completing this training, accountants receive 4 PE-hours. The certificate of attendance will be provided 4 weeks after the training.

PE-points RC’s

By completing this training, registered controllers receive 4 PE-points. The certificate of attendance will be provided 4 weeks after the training.
 

Costs

EUR 450 (excluding VAT). This includes training material and a drinks reception.
 


Location