Corporate Malaysia has to start planning for the fast approaching deadline of 2012 for International Financial Reporting Standards (IFRS) convergence and from January 2011, Malaysian companies are expected to be preparing their first set of IFRS-based comparative financial statements. To facilitate a phased changeover to IFRS, the effective date for applying FRS 139 Financial Instruments: Recognition and Measurement will be on 1 January 2010.

The focus on financial risk management by the standards setters is evident with the introduction of FRS 139 in which the application of hedge accounting is detailed. The purpose of this course is to gain an appreciative level towards hedge accounting and accounting for derivatives.

Course Objective

1. To cover accounting treatments for financial instruments by issuers under the Malaysian Accounting Standards Board, with particular emphasis on FRS 132 Financial Instruments: Disclosure and Presentation, and FRS 139 Financial Instruments: Recognition and Measurement.

2. To cover accounting issues pertaining to asset securitization and derecognition of assets.

Course Outline

Session 1: Derivatives and Hedge Accounting

• Types of Derivatives
• Accounting for Derivatives and Embedded Derivatives
• Criteria for Hedge Accounting.
• Hedged Items§ Hedge Instruments
• Establishing hedging relationship

Session 2: Qualifying Conditions for Hedge Accounting

• Documentation and designation
• Expectation of hedge being ‘highly effective’
• Highly probable forecasted transactions
• Reliably measured effectiveness testing
• Ongoing assessment of hedge as ‘highly effective’

Session 3: Accounting for Effective Fair Value Hedges

• Ongoing fair value hedging
• Adjustments to hedged items
• Discontinuing fair value hedging

Session 4: Accounting for Effective Cash Flow Hedges

• Ongoing cash flow hedging
• Recycling gains and losses from equity
• Discontinuing cash flow hedging

This methodology includes Lecture with workshop activities.

Target Audience : All
CPD Code : 081110KL1

Speaker’s Profile

Mr David Meow

David Meow is the Managing Director for VIA Commerce Sdn Bhd, which is involved in providing training and consultancy services in areas related to financial accounting, and financial securities valuation. VIA Commerce has provided training and consultancy services to government–related regulatory bodies including Bank Negara Malaysia (BNM), Permodalan Nasional Berhad (PNB) and Securities Commission of Malaysia, Kumpulan Wang Simpanan Pekerja (KWSP), Jabatan Perdana Menteri (ILKAP), financial institutions (including CIMB, Maybank Investment Bank, Ambank Berhad), and other corporations.

He is currently associated with Securities Commission, Malaysia for several developmental projects. He is also involved in several programmes initiated by Permodalan Nasional Berhad Institute. Besides training and consultancy, he also teaches the Chartered Financial Analysts (CFA) and ACCA programmes in Kuala Lumpur, Singapore, Hong Kong, Shanghai and Vietnam.

He was a visiting lecturer to Sheffield University, a registered tutor for Hull University, and has lectured for several undergraduates and masters’ programmes in the region.  He was also involved in facilitating several programmes with an institution under the Ministry of Economy and Finance, Royal Kingdom of Cambodia.

*Claimable Under HRDF – The SBL Scheme: Based on the merit of each applicant