Entities are exposed to many risks, but they can often mitigate their financial risks using financial instruments called derivatives. Such risks include interest rate risk, foreign currency risk, and price (or market) risk. But there's one small catch! Derivative instruments can create volatility in earnings because these instruments are normally recorded at fair value with changes in fair value recorded through profit or loss in accordance with IFRS 9. However, the underlying hedged item is accounted for using other standards which creates an accounting mismatch. Enter hedge accounting! Upon meeting strict criteria, hedge accounting may be used to reduce this income statement volatility. So why doesn't everyone do it? Because it's complex! This CPE-eligible, eLearning course (1.5 CPE) walks through hedge accounting under IFRS 9 in a way that is easily understood. IFRS 9 covers a variety of topics on accounting for financial instruments including classification and measurement, impairment, derivatives, hedging, and derecognition. This course will focus on hedge accounting.