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.

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

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

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

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

Preparation

None

Notice

You will receive an email from CPA Crossings via Webex with instructions to access the webinar.