Investigate Coffee-Price and Euro Risk for a Vietnamese Exporter
Overview
What this challenge is about.
Track robusta coffee prices and EUR/USD rates for a Vietnamese exporter, then map exposure and test hedges. Earn a verifiable certificate.
The scenario
Trung Nguyen Legend exports Vietnamese robusta to European roasters under euro-priced contracts while its bean, processing, and wage costs fall in Vietnamese dong and US dollars — a structural mismatch that makes its reported margins move with two markets it does not control. The phenomenon to investigate is how visibly that coffee-price and currency volatility has flowed into the company's earnings over the past year, and whether it can be hedged.
The Brief
What you'll do, and what you'll demonstrate.
Find out whether robusta price risk and euro exposure genuinely destabilise Trung Nguyen Legend's reported earnings, and whether adopting IFRS 9 cash flow hedge accounting would measurably stabilise them at an acceptable documentation cost.
Earning criteria — what you'll demonstrate
- Translate observable public market behaviour into a quantified picture of a company's earnings exposure.
- Apply IFRS 9 qualifying criteria to designate and document commodity and foreign-exchange hedging relationships.
- Perform and interpret prospective and retrospective hedge effectiveness tests using regression and dollar-offset methods.
- Build IFRS 7-compliant disclosures and quarter-end journal entries that are decision-useful and internally consistent.
- Weigh the earnings-stabilisation benefit of hedge accounting against its operational and documentation burden in a board recommendation.
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Ifrs 9
Apply ifrs 9 to solve real industry problems and demonstrate production-level capability.
- Hedge Accounting
Apply hedge accounting to solve real industry problems and demonstrate production-level capability.
- Derivatives
Apply derivatives to solve real industry problems and demonstrate production-level capability.
- Risk Management
Identify, assess, and mitigate risks across business operations and projects.
- Ifrs 7 Disclosures
Apply ifrs 7 disclosures to solve real industry problems and demonstrate production-level capability.
- Financial Modeling
Build and validate financial models that support strategic business decisions.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles:
Treasury Risk Analyst
This challenge mirrors the core treasury task of measuring market exposures and structuring hedges, building the judgement needed to manage commodity and currency risk for an exporting business and present that work to senior decision-makers.
This challenge sharpens
- hedge-accounting
- risk-management
- derivatives
Financial Reporting Manager
By designing IFRS 9 hedge documentation and IFRS 7 disclosures grounded in real market data, you practise the standard-setting and disclosure work that financial reporting managers own at quarter-end and year-end close.
This challenge sharpens
- ifrs-9
- ifrs-7-disclosures
- financial-modeling
Commodity Risk Consultant
The investigation into how coffee-price and currency swings hit reported earnings, and whether hedging pays off, is exactly the advisory work consultants deliver to commodity producers and exporters weighing a hedge program.
This challenge sharpens
- derivatives
- risk-management
- hedge-accounting