Wednesday, 13 November 2024 at 16:30-18:00 MS Teams

A presentation by Jiří Strouhal (Head of the Accounting Research Group at the Department of Business Administration of TalTech SBG).

SMEs as well as large companies are affected by various financial risks. To hedge against these risks there might be used either natural hedging or they may opt for derivative contracts to be secured from forex risks, interest rate risks or commodity price risks. This presentation is focusing on derivatives and hedging from the accounting perspective showing how to measure financial derivatives, resp. if companies can do it themselves and how to report them on the face of balance sheet and income statement. There will be also shown some real documents from banks or other derivative providers to show how looks the derivative confirmation in real practice.

The presentation will also focus on hedge accounting showing the major issues from the practical point of view and showing also the differences between fair value hedge and cash flow hedge on certain typical cases (hedge of exporting businesses, hedge of developers, hedge of bond issuer, hedge of loan with swap). There will be discussed challenges with the fair value measurement and revaluation of derivatives through the equity at the year-end and how to use the revaluation surplus to reach the precise profit/loss impact.

Jiří Strouhal, PhD. Head of an accounting research unit and a visiting professor of the Department of Business Administration at TalTech School of Business and Governance since August 2024. He finished his PhD studies in 2005 with thesis focused on financial and accounting aspects of financial options. Jiri focuses on derivatives reporting and hedge accounting not only from the research perspective, but also from professional perspective preparing hedge documentations for SMEs and large companies and acting as auditors’ expert in this field. He worked between 2005 till 2017 at University of Economics and Business in Prague (Czechia), where he was lecturer at the Department of Financial Accounting and Auditing (2005-2011), later associate (2012-2015) and full professor (since 2016) of the Department of Business Economics. Since 2017 he is with Skoda Auto University (Czechia). Between 2011-2021 he served as a President of the Association of Czech Professional Accountants and he is also an author of the currently run scheme for the accounting certification in Czechia. His research focuses on accounting harmonisation, financial performance and ESG reporting.

The seminar is in English. Further information: pia.riips@taltech.ee.