Investment Education PLC

Accounting & Controls for Derivatives Users
Last Updated - 18 July 2008
Todays Date -
Return to CoursePrint course
Duration 1 day
Available as an in-house course


To provide users and accountants of Derivatives with hands on experience of the Reporting and Accounting for Derivatives. The material covers best practice in the identification, management and control of derivative's exposure.

What you will learn

-  The Margining Process
-  How to account for Futures & Options in both the Treasury and
Fund    Management areas
-  How to Measure Market risk
-  An explanation of and how to apply Value at Risk
-  A workshop on the Accounting Aspects of Trades & Hedges.




-Calculation and Payment Procedures
-Initial and SPAN Margin
-Types of collateral

Accounting Issues

-Accounting guidance
-Types of users
Hedge & Mark to Market accounting
Profit recognition
Accounts required
Fund Management accounting
Accounting for Options premium

Accounting Workshop

A practical session giving delegates hands-on experience of accounting for derivatives instruments.

Internal Controls for Traders & End Users

-Framework for internal controls over a Derivatives operation
-The practical application of G30
-Reconciliation controls and recommendations
-Common systems - related issues and controls
-Valuation issues and controls
-Documentation controls
-Understanding the sources of revenue

(Session Option)
Portfolio Valuation & Performance

-The LIFFE/PRAG recommendations
-Investment Strategies using Futures & Options
-Futures & Options as a separate class
-Portfolio Valuations
-Performance Management examples
-Sensitivity Analysis

(Alternate Session Option)
Identifying & Managind Derivatives Risk

-Definitions and assumptions of Value at Risk (VAR)
-Practical applications for VAR for institutions
-Share testing of VAR models
-Potential problems