CFO Series: Foreign Exchange: Accounting, Exposure, and Risk

Overview

If a firm is doing business across borders, you are exposed to the risks associated with foreign exchange (‘FX’). We will discuss credit risk, different legal requirements, and the hazards associated with pricing denominated in a foreign currency. We will explore these risks and consider options available to manage and minimize them, including hedging. If your company has non-US revenue or entities, you will also have to deal with translation of results into US Dollars as you consolidate results. We will review ASC 830 and ASC 815 that deal with the conversion of transactions and practical steps we can take to address these requirements. We will also look at the technical requirements of hedge accounting, as well as why hedge accounting matters. Valuable guidance for any entity considering international expansion.

Highlights

The major topics that will be covered in this course include:

Managing Foreign Currency
Transactions and translation
The role of banks and settlement
Exchange markets
How forward rates are established using interest rate differentials
GAAP Accounting standards
- ASC 830 - Foreign Currency transactions
- ASC 815 – Hedging
Hedging - basic principles
Hedging instruments
Long term financing of foreign operations
Impact of cryptocurrency

Prerequisites

Preferably at least six (6) months of professional financial statement analysis experience and/or at least six (6) months of professional experience in preparing or reviewing accounting processes and reports

Designed For

Corporate financial leaders, corporate financial managers, CEOs, CFOs, controllers, board members, accountants, business owners, risk managers, accounting managers, entrepreneurs, consultants, advisors and the professionals who advise them. Any profession

Objectives

After attending this presentation, you will be able to...

Analyze how foreign exchange markets work.
Identify the risks associated with buying and selling in foreign currency.
Analyze the risks associated with selling abroad in U.S. dollars.
Apply hedging strategies
Use appropriate methods for collecting money from foreign transactions.
Apply accounting guidance for the translation of results and of transactions.
Compare the role of cryptocurrency, including stable coins and unstable coins