Chapter 15: Derivatives, Hedges, and Financial Instruments

In this section

• Types of Derivatives (Swaps, Options, Futures)
  Discover how swaps, options, and futures can help manage risk, enhance returns, and ensure transparent accounting treatment for strategic financial decision-making.
• Fair Value vs. Cash Flow Hedges
  Explore hedge accounting designations under U.S. GAAP and discover how changes in fair value are reported in earnings or OCI based on hedge type.
• Embedded Derivatives and IFRS Comparisons
  Explore embedded derivatives under U.S. GAAP (ASC 815) and IFRS (IFRS 9), their separation criteria, practical case studies, and common pitfalls for your CPA BAR Exam readiness.
• Presentation in Financial Statements
  [Learn how to present hedge gains and losses, derivative assets and liabilities, and key disclosure requirements in financial statements under GAAP and IFRS. Explore real-world examples, best practices, and pitfalls of derivative reporting.]