Strategy
Hedge Accounting Strategy for a Vietnamese Coffee Exporter
Overview
What this challenge is about.
Build a hedge accounting playbook covering: (1) hedge designation and documentation templates for at least two hedging relationships, (2) prospective and retrospective effectiveness testing methodology under IFRS 9 (qualitative + quantitative, e.g., regression or dollar-offset), (3) journal entries for one full quarter under realistic price/FX scenarios, and (4) IFRS 7 disclosure mock-ups. Constraints: assume EUR 50M of forecast sales over 12 months and 8,000 tonnes of expected robusta deliveries. Success means a board-ready recommendation with a clear earnings-volatility comparison (hedge accounting vs. no designation) and an honest assessment of operational complexity.
The Brief
What you'll do, and what you'll demonstrate.
Should the exporter adopt IFRS 9 cash flow hedge accounting for its commodity and FX exposures, and how should the program be designed and documented?
Earning criteria — what you'll demonstrate
- Design IFRS 9-compliant hedge accounting relationships for commodity and FX risks
- Execute effectiveness assessment using qualitative and statistical methods
- Prepare hedge accounting journal entries and OCI/P&L recycling
- Produce IFRS 7 risk disclosures aligned with hedge documentation
- Evaluate trade-offs between earnings stability and operational/compliance burden
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.