Track: Financial Accounting and Reporting

FAS 157 Implications for Derivative Fair Values

Monday, October 20, 2008
8:30 a.m. - 9:30 a.m.
Room: 406 AB

FAS 157 imposes new regulatory requirements around fair value measurements. Under FAS 157, the true credit and liquidity risks should be included in the fair value of derivatives which will affect the way corporates mark to market derivatives and/or achieve FAS 133 hedge accounting compliance. Understand why this could impact your company and learn how to best account for these risks.

Speakers:

• Jiro Okochi
  Chief Executive Officer and Co-Founder
  Reval

Objectives

• Determine the key requirements around FAS 157 compliance
• Understand how to measure the credit component of a derivative
• Illustrate the impact of FAS 157 to FAS 133 effectiveness reporting

Pre-Requisites

• Basic understanding of derivative use and how they are valued vs. LIBOR benchmark curve
• High level understanding of FAS 133 effectiveness testing

Take-Aways

• Checklist for FAS 157 compliance
• Examples of derivative hedges pre- and post- FAS 157

CPA Field of Study: ACCT