iStock_000009413327_SmallThis free video lecture from Wiley CPAexcel covers the accounting for fair value hedges, a topic than can be quite confusing for some CPA candidates. 

Prof. Pam Smith On Fair Value Hedges

As the name implies, the purpose of a fair value hedge is to offset changes in the fair value of the hedged item. This lecture, presented by Prof. Pam Smith of Northern Illinois University, will define fair value hedges, the requirements that must be met in order for a derivative to be treated as a fair value hedge, and the accounting treatment of derivatives and related hedged items in a fair value hedge.

After watching this lecture, you should be able to:

  1. Define a fair value hedge.
  2. Describe the criteria that must be met for a derivative to qualify as a fair value hedge.
  3. Describe the accounting for derivatives used as fair value hedges and for the related hedged item.
  4. Record entries related to fair value hedges.
  5. Describe the accounting when the requirements for a fair value hedge are no longer satisfied.

Got it? Let’s do this …

Sign Up For a Free Trial of Wiley CPAexcel

See why better than 9 out of 10 Wiley users pass the CPA Exam when you sign up for a free trial here.

We use cookies to learn how you use our website and to ensure that you have the best possible experience.
By continuing to use our website, you are accepting the use of cookies.
Learn More