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Institute For Oil & Gas Training
OGI-1173 New

IFRS 9 – Financial Instruments: Hedge Accounting Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
12 Oct 2026
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Overview

The IFRS 9 – Financial Instruments Training Course from Institute For Oil & Gas Training develops practical capability in hedge accounting for complex financial exposures across oil and gas operations. The course focuses on how finance and accounting professionals apply IFRS 9 requirements to hedge accounting designation, hedge documentation, hedge effectiveness, and the accounting treatment of hedging relationships.

Oil and gas organisations operate with significant exposure to commodity prices, foreign exchange movements, interest rates, financing costs, and cross-border transactions. These exposures create financial volatility that requires disciplined risk management and accurate financial reporting. IFRS 9 provides the accounting framework for recognising and measuring financial instruments while establishing specific requirements for hedge accounting relationships.

This course addresses the practical gap between treasury risk management and financial reporting. Participants examine how a hedging strategy translates into an appropriate accounting relationship between the hedging instrument and hedged item. The programme covers cash flow hedge, fair value hedge, and hedge of net investment accounting, with emphasis on documentation, designation, effectiveness assessment, presentation, and subsequent accounting treatment.

The course also examines important areas that influence financial instrument accounting in the oil and gas sector, including embedded derivatives, the own use exemption, commodity contracts, foreign currency exposures, interest rate risks, and hedge reserve recycling. Participants work through realistic oil and gas scenarios involving purchases, sales, borrowings, project finance, joint venture exposures, foreign currency transactions, and commodity-linked contracts.

Institute For Oil & Gas Training delivers the programme from a corporate perspective, connecting IFRS 9 requirements with treasury processes, risk management policies, financial close procedures, audit evidence, and management reporting. The emphasis remains on applying the requirements consistently rather than treating hedge accounting as a theoretical reporting exercise.

A central focus is hedge accounting designation. Participants learn how to identify the relevant risk, establish the hedging relationship, define the hedging instrument and hedged item, document the relationship appropriately, and evaluate whether the relationship satisfies the relevant IFRS 9 conditions. This creates a structured connection between risk management objectives and financial reporting outcomes.

Hedge documentation receives detailed attention because documentation supports the integrity and auditability of a hedging relationship. Participants consider the information required to establish a clear relationship between the risk management strategy, hedging instrument, hedged item, designated risk, effectiveness methodology, and treatment of resulting gains or losses.

Hedge effectiveness is also addressed through practical scenarios. Participants examine the relationship between changes in the hedging instrument and changes in the hedged item, identify sources of ineffectiveness, and understand how effectiveness considerations influence financial reporting.

The course gives particular attention to cash flow hedge accounting because oil and gas businesses frequently manage forecast transactions and variable cash flows. Participants explore how effective portions of qualifying hedge movements are recognised in other comprehensive income and accumulated within the appropriate hedge reserve, followed by the relevant accounting treatment when the hedged cash flows affect profit or loss or the carrying amount of a non-financial asset or liability.

Fair value hedge accounting is examined through scenarios involving exposure to changes in the fair value of recognised assets, liabilities, or qualifying components. Participants assess how changes in the hedging instrument and hedged item are reflected in financial reporting and how the accounting relationship supports transparent reporting of risk management activities.

The programme also addresses a hedge of net investment in a foreign operation. This is particularly relevant to international oil and gas groups with overseas subsidiaries, branches, projects, or other foreign operations. Participants examine the relationship between foreign currency exposure, hedging instruments, and the accounting treatment of qualifying gains and losses.

Commodity contracts require careful assessment because not every physical purchase or sale contract falls within the same accounting treatment. The own use exemption is therefore considered as part of the broader evaluation of contracts for commodities and other non-financial items. Participants learn how contract terms, settlement practices, and organisational intentions influence the accounting assessment.

Embedded derivatives form another important component of the programme. Oil and gas contracts frequently contain pricing mechanisms or contractual features linked to currencies, commodities, indices, or other variables. Participants examine how such features are assessed under the applicable IFRS 9 requirements and how accounting teams should document their conclusions.

The course further addresses hedge reserve recycling and related presentation considerations. Participants follow the accounting lifecycle from initial designation through subsequent measurement, recognition in other comprehensive income, transfer or recycling, and final treatment when the underlying transaction affects the financial statements.

Through this integrated approach, Institute For Oil & Gas Training helps participants connect IFRS 9 with practical corporate processes. The result is a stronger understanding of financial instrument accounting, better coordination between finance and treasury, clearer documentation, and more consistent application of hedge accounting policies across oil and gas operations.

Objectives

  • Understand the principles and application of IFRS 9 – Financial Instruments within oil and gas organisations.

  • Identify financial risks that qualify for hedge accounting treatment.

  • Establish appropriate hedge accounting designation based on documented risk management objectives.

  • Develop robust hedge documentation covering the hedging instrument and hedged item.

  • Understand the requirements for assessing hedge effectiveness.

  • Apply cash flow hedge accounting to qualifying forecast transactions and cash flow exposures.

  • Apply fair value hedge accounting to qualifying fair value exposures.

  • Understand accounting treatment for a hedge of net investment in a foreign operation.

  • Assess commodity contracts against relevant IFRS 9 requirements.

  • Understand the own use exemption and its relevance to commodity purchase and sale contracts.

  • Identify and assess embedded derivatives within relevant contractual arrangements.

  • Understand the accounting treatment of hedge ineffectiveness.

  • Apply appropriate treatment to amounts recognised in the hedge reserve.

  • Understand hedge reserve recycling and related financial reporting consequences.

  • Connect treasury risk management activities with financial reporting requirements.

  • Improve the quality and consistency of hedge accounting documentation.

  • Strengthen preparation for internal and external audit review of hedging relationships.

  • Improve coordination between treasury, finance, accounting, risk, and reporting teams.

  • Apply IFRS 9 concepts to realistic oil and gas transactions and financial exposures.

Training methodology

Institute For Oil & Gas Training uses an application-led methodology designed for finance, treasury, accounting, risk, and reporting professionals working in corporate environments. The delivery combines technical explanation with realistic oil and gas scenarios so participants can connect IFRS 9 requirements with the transactions and risk exposures encountered in their organisations.

Case studies form a major part of the training. Participants examine scenarios involving foreign currency exposures, commodity price risks, variable interest rates, forecast purchases, financing arrangements, and investments in foreign operations. Each case follows the accounting relationship from risk identification through designation, documentation, effectiveness assessment, recognition, and subsequent treatment.

Practical simulations allow participants to assess a proposed hedge accounting relationship and determine the appropriate accounting approach. These exercises focus on the interaction between the hedging instrument and hedged item and require participants to consider the designated risk, supporting documentation, effectiveness requirements, and financial statement consequences.

Group exercises are used to examine judgement-based accounting situations. Participants compare approaches, identify documentation weaknesses, assess potential sources of hedge ineffectiveness, and develop structured accounting conclusions. This supports consistency between finance, treasury, risk management, and financial reporting teams.

Real-world oil and gas scenarios provide context for commodity contracts, foreign exchange transactions, debt instruments, project financing, and international operations. The methodology emphasises the commercial purpose behind the hedge and the accounting consequences of the selected risk management strategy.

Participants also work through documentation exercises covering hedge accounting designation, risk identification, hedging instruments, hedged items, effectiveness methodologies, and monitoring procedures. This supports stronger audit trails and clearer communication between operational treasury teams and financial reporting functions.

The methodology also incorporates review exercises covering embedded derivatives and the own use exemption. These activities help participants distinguish between contracts that require financial instrument assessment and transactions that fall within applicable accounting treatment for normal purchase or sale arrangements.

Financial statement impact exercises demonstrate how hedge accounting decisions affect profit or loss, other comprehensive income, financial position, and equity. Particular attention is given to hedge reserve recycling and the point at which accumulated amounts are transferred or otherwise accounted for in accordance with IFRS 9 requirements.

Organisational impact

Effective IFRS 9 application strengthens the connection between corporate risk management and financial reporting. Organisations benefit from clearer hedge accounting policies, stronger documentation, and more consistent treatment of financial instruments across business units and reporting periods.

A structured approach to hedge accounting designation helps organisations align accounting treatment with documented risk management strategies. This reduces ambiguity when finance and treasury teams establish hedging relationships and supports more consistent application across commodity, currency, and financing exposures.

Improved hedge documentation strengthens audit readiness. Clear records covering the hedging instrument, hedged item, designated risk, risk management objective, effectiveness methodology, and subsequent monitoring provide a stronger evidence base for financial reporting review.

Better understanding of hedge effectiveness supports earlier identification of ineffective relationships. Finance and treasury teams gain a clearer basis for monitoring hedges and explaining movements in financial results.

Cash flow hedge expertise supports improved accounting for qualifying forecast transactions. This is particularly relevant where oil and gas organisations manage anticipated commodity purchases, sales, foreign currency transactions, or variable-rate cash flows.

Fair value hedge knowledge supports appropriate accounting for recognised exposures affected by changes in fair value. This provides finance teams with a structured approach to reporting the effects of qualifying hedging relationships.

Understanding a hedge of net investment supports international groups managing foreign currency exposure associated with overseas operations. It improves the ability of finance teams to connect treasury strategies with group financial reporting.

Improved knowledge of the own use exemption and embedded derivatives supports more disciplined contract assessments. This is particularly relevant to organisations entering commodity supply, purchase, sale, transportation, financing, and other contracts containing financial or pricing features.

Stronger knowledge of hedge reserve recycling helps organisations maintain appropriate accounting records throughout the life of a hedge. Finance teams gain a clearer understanding of how accumulated amounts move through financial reporting when the underlying transaction affects the financial statements.

The overall organisational impact includes stronger accounting governance, more consistent financial reporting, improved coordination between treasury and accounting, clearer audit evidence, and more effective management of financial instrument reporting processes.

Personal impact

Participants develop practical knowledge that strengthens their ability to manage IFRS 9 accounting responsibilities within corporate finance and treasury environments.

They gain a structured approach to analysing financial instruments and identifying relevant hedge accounting considerations. This supports more confident assessment of commodity, foreign exchange, interest rate, and investment-related exposures.

Participants strengthen their ability to establish hedge accounting designation and prepare supporting hedge documentation. They learn how to connect the organisation's risk management objective with the accounting relationship and required documentation.

The programme improves understanding of hedge effectiveness and helps participants evaluate the relationship between the hedging instrument and hedged item. This supports more effective communication with treasury, risk management, auditors, and senior finance personnel.

Participants develop practical capability in cash flow hedge accounting, fair value hedge accounting, and hedge of net investment accounting. They also gain greater awareness of how these approaches affect financial reporting.

The course strengthens technical knowledge of embedded derivatives and the own use exemption, enabling participants to participate more effectively in contract reviews and accounting assessments.

Participants also develop stronger understanding of hedge reserve recycling, other comprehensive income, and the financial statement consequences of hedge accounting decisions.

These capabilities support professional development across financial reporting, technical accounting, treasury, controllership, financial analysis, audit support, and risk management functions.

Who should attend

  • Financial Reporting Managers — To strengthen oversight of IFRS 9 reporting and hedge accounting policies.

  • Technical Accountants — To develop practical capability in financial instrument and hedge accounting assessments.

  • Treasury Managers — To connect hedging strategies with accounting designation and reporting requirements.

  • Treasury Analysts — To improve understanding of hedge documentation, effectiveness, and financial reporting treatment.

  • Finance Managers — To strengthen control over financial instrument accounting and reporting processes.

  • Financial Controllers — To improve governance and review of hedge accounting relationships.

  • Group Accountants — To support consistent IFRS 9 application across international operations.

  • Oil and Gas Accountants — To apply financial instrument accounting concepts to sector-specific transactions.

  • Risk Managers — To understand how financial risk management strategies translate into accounting relationships.

  • Internal Auditors — To improve review of hedge documentation, controls, and accounting processes.

  • External Audit Professionals — To strengthen understanding of evidence and accounting considerations surrounding hedge relationships.

  • Finance Directors and Senior Finance Leaders — To strengthen oversight of financial reporting implications arising from hedging activities.

  • Commodity Risk Professionals — To understand accounting implications associated with commodity risk management.

  • Financial Analysts — To improve interpretation of financial statement effects arising from hedge accounting.

  • Joint Venture Finance Professionals — To strengthen financial instrument knowledge in complex oil and gas ownership structures.

  • Professionals involved in IFRS implementation — To develop practical knowledge of IFRS 9 requirements and corporate application.

Course outline

This module establishes the technical foundation for IFRS 9 and its application to financial instruments within oil and gas organisations. Participants examine the relationship between financial risk management and financial reporting, with emphasis on identifying exposures that form the basis of qualifying hedging relationships.

  1. IFRS 9 Financial Instruments

    • Establishes requirements for classification and measurement of financial assets and financial liabilities.

    • Provides the principal IFRS requirements for hedge accounting.

    • Links qualifying hedge accounting treatment to documented risk management relationships.

    • Provides requirements relevant to the designation and measurement of hedging relationships.

    Learning Outcomes

    • Explain the purpose and scope of IFRS 9 in corporate financial reporting.

    • Identify relevant financial instruments and risk exposures.

    • Distinguish between the hedging instrument and hedged item.

    • Establish the key components of a hedge accounting designation.

    • Recognise the importance of complete and contemporaneous hedge documentation.

    • Identify key sources of hedge ineffectiveness.

This module focuses on cash flow hedge accounting and the treatment of qualifying exposures whose future cash flows affect financial statements. Participants examine practical scenarios involving forecast transactions and variable cash flow exposures commonly encountered in oil and gas operations.

  1. IAS 1 Financial Statements

    • Provides principles for presentation of financial statements.

    • Supports understanding of how hedge accounting effects are reflected within financial reporting.

    • Provides relevant presentation principles for profit or loss, other comprehensive income, and equity.

    • Helps participants connect hedge accounting movements with financial statement presentation.

    Learning Outcomes

    • Explain the purpose of cash flow hedge accounting.

    • Identify qualifying cash flow exposures.

    • Understand the treatment of effective and ineffective hedge movements.

    • Explain the role of the cash flow hedge reserve.

    • Apply the principles of hedge reserve recycling.

    • Connect hedge accounting entries with financial statement presentation.

This module examines fair value hedge accounting and the interaction between changes in the fair value of hedging instruments and qualifying hedged items. Participants assess scenarios involving interest rate, commodity, and other relevant financial exposures.

  1. IFRS 13 Fair Value Measurement

    • Establishes the IFRS framework for fair value measurement.

    • Provides principles relevant to measuring fair value consistently.

    • Supports assessment of fair value changes affecting financial instruments.

    • Provides important measurement concepts for financial reporting involving fair value exposures.

    Learning Outcomes

    • Explain the purpose of fair value hedge accounting.

    • Identify appropriate fair value exposures.

    • Understand the interaction between the hedging instrument and hedged item.

    • Assess the financial reporting effect of fair value movements.

    • Identify sources of hedge ineffectiveness.

    • Apply fair value concepts when evaluating hedging relationships.

This module addresses foreign currency exposures associated with international oil and gas operations and examines the accounting considerations surrounding a hedge of net investment. It also introduces contract assessment areas involving commodity arrangements, the own use exemption, and embedded derivatives.

  1. IAS 21 Foreign Exchange

    • Establishes requirements for accounting for foreign currency transactions and foreign operations.

    • Provides principles for foreign currency translation.

    • Supports understanding of foreign exchange effects associated with overseas operations.

    • Provides relevant context for accounting for a hedge of net investment.

    Learning Outcomes

    • Explain the purpose of a hedge of net investment.

    • Identify relevant foreign currency exposures in international oil and gas groups.

    • Understand the relationship between hedging instruments and foreign operations.

    • Assess commodity contracts for relevant accounting considerations.

    • Explain the own use exemption in the context of qualifying contracts.

    • Identify contractual features requiring embedded derivative assessment.

This module integrates the course content by focusing on the complete lifecycle of a hedge accounting relationship. Participants examine designation, documentation, effectiveness monitoring, accounting entries, financial statement presentation, and ongoing review.

  1. IFRS 7 Financial Instruments

    • Establishes disclosure requirements relating to financial instruments.

    • Provides requirements for communicating the significance of financial instruments to financial position and performance.

    • Includes disclosure considerations relating to financial risk.

    • Supports transparent reporting of financial instrument and risk management activities.

    Learning Outcomes

    • Evaluate the completeness of hedge documentation.

    • Assess hedge effectiveness within the documented relationship.

    • Identify reporting consequences of hedge ineffectiveness.

    • Explain hedge reserve recycling and related accounting treatment.

    • Connect hedge accounting processes with financial instrument disclosures.

    • Strengthen audit evidence supporting hedge accounting conclusions.

    • Integrate treasury, accounting, risk, and financial reporting processes.

    • Apply the complete IFRS 9 hedge accounting lifecycle to oil and gas scenarios.

Certificate

Attendees who successfully complete the course receive a Certificate of Completion from Institute For Oil & Gas Training. The certificate confirms completion of the training programme and participation in the course content.

Certificate eligibility requires attendees to satisfy the Institute For Oil & Gas Training attendance requirement and complete the scheduled course participation. Full attendance supports the intended coverage of the technical modules, practical exercises, case studies, and applied learning activities.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,200

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,200

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,200

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,200

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does this IFRS 9 – Financial Instruments course cover?

The course covers hedge accounting designation, hedge documentation, hedge effectiveness, cash flow hedge, fair value hedge, hedge of net investment, embedded derivatives, the own use exemption, and hedge reserve recycling.

Who is this IFRS 9 training course designed for?

The course is designed for finance managers, financial reporting professionals, technical accountants, treasury professionals, financial controllers, risk managers, auditors, and oil and gas accounting specialists.

How is the IFRS 9 course delivered?

Institute For Oil & Gas Training uses case studies, practical exercises, simulations, group activities, and realistic oil and gas scenarios to connect IFRS 9 requirements with corporate financial reporting and treasury processes.

Does the course cover cash flow hedge and fair value hedge accounting?

Yes. The programme provides dedicated coverage of cash flow hedge and fair value hedge accounting, including designation, documentation, effectiveness, financial statement treatment, and relevant reporting considerations.

What certificate is provided after completing the course?

Attendees who meet the Institute For Oil & Gas Training attendance requirement receive a Certificate of Completion confirming completion of the training programme.

Next: 12 Oct 2026

4 dates available

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