Master program · Risk, Controls & Surveillance

Classify the contract. Designate the hedge. Survive the audit.

Master commodity derivatives and hedge accounting under IFRS 9 and ASC 815: contract classification, own-use and normal purchase exemptions, embedded derivatives, designation and documentation, effectiveness testing, OCI and reclassification, disclosure, and the ETRM-to-general-ledger integration that makes it all reproducible.

IFRS 9 · ASC 815 · Own-use · Embedded derivatives · Designation · Effectiveness · OCI · ETRM to GL

Enquire about this programme See the 130 chapters

130 chapters · 12 modules · Python + SQL labs · one continuous case · end-to-end capstone

How it is built

Cumulative, not modular

Chapter 130 should be impossible to complete properly without the artefacts built in the chapters before it. The programme follows one continuous fictional firm, NorthStar Energy Trading, so relationships between trades, positions, agreements, exposures and decisions accumulate rather than reset.

The learning chain

Contract → Classification → Own-use test → Embedded derivative → Designation → Measurement → Effectiveness → OCI → Reclassification → Disclosure → Audit

The technical build

Contract register → Classification engine → Designation pack → Valuation feed → Effectiveness tester → OCI ledger → Disclosure builder → ETRM-to-GL bridge

NorthStar Energy Trading is a fictional firm created for teaching. It does not describe any real company, person or investigation.

Curriculum

12 modules · 130 chapters

M0 Commodity Derivatives Accounting Primer Ch 1–8 · 8 chapters

Establish the accounting mental model

  1. What Commodity Derivatives Accounting Actually Does
  2. Economic Hedge vs Accounting Hedge
  3. Physical Contract vs Derivative
  4. Recognition, Measurement and Presentation
  5. Fair Value Through P&L vs Hedge Accounting
  6. OCI and AOCI Fundamentals
  7. IFRS 9 vs ASC 815
  8. NorthStar Commodity Accounting Operating Model
M1 Derivative Scope, Own Use & NPNS Ch 9–22 · 14 chapters

Decide what accounting model applies before calculating anything

  1. Definition of a Derivative
  2. Commodity Contracts Capable of Net Settlement
  3. IFRS 9 Own-Use Principle
  4. Expected Purchase, Sale and Usage Requirements
  5. Own Use and Trading Behaviour
  6. IFRS 9 Own-Use Decision Tree
  7. U.S. GAAP Normal Purchases and Normal Sales
  8. Physical Delivery Under NPNS
  9. Electricity and NPNS Complexity
  10. Contracts Outside the Scope Exceptions
  11. Physical Settlement of Accounted-for Derivatives
  12. Scope Reassessment
  13. Commodity Scope Assessment Controls
  14. NorthStar Derivative Scope Engine
M2 Fair Value & Commodity Valuation Accounting Ch 23–34 · 12 chapters

Establish the accounting measurement layer

  1. Why Fair Value Matters
  2. Commodity Forward Valuation
  3. Futures Accounting
  4. Commodity Swap Valuation
  5. Commodity Option Valuation
  6. Forward Curves in Accounting
  7. Basis and Location Adjustments
  8. FX in Commodity Valuation
  9. Credit and Non-Performance Considerations
  10. Valuation Adjustments
  11. Fair Value Hierarchy and Observability
  12. NorthStar Accounting Valuation Engine
M3 Hedge Accounting Architecture Ch 35–46 · 12 chapters

Build a valid hedging relationship before calculating effectiveness

  1. Why Hedge Accounting Exists
  2. Hedging Instrument
  3. Hedged Item
  4. Risk Components
  5. Hedge Ratio
  6. Formal Designation
  7. Timing of Documentation
  8. Forecast Transaction Probability
  9. Layer Components
  10. Groups and Aggregated Exposures
  11. Hedge Accounting Election vs Risk Management
  12. NorthStar Hedge Relationship Master
M4 IFRS 9 Cash Flow Hedge Accounting Ch 47–62 · 16 chapters

Follow forecast commodity exposures through OCI and eventual settlement

  1. Cash Flow Hedge Fundamentals
  2. Forecast Commodity Purchase Hedge
  3. Forecast Commodity Sale Hedge
  4. Cash Flow Hedge Reserve
  5. Hedge Ineffectiveness
  6. Economic Relationship
  7. Credit Risk Dominance
  8. IFRS Hedge Ratio Assessment
  9. Cost of Hedging
  10. Commodity Basis Risk
  11. Timing Mismatch
  12. Volume Mismatch
  13. Rebalancing
  14. Discontinuation
  15. Basis Adjustment of Non-Financial Assets
  16. NorthStar IFRS Cash Flow Hedge Engine
M5 IFRS 9 Fair Value Hedges & Advanced Designations Ch 63–72 · 10 chapters
  1. Fair Value Hedge Fundamentals
  2. Firm Commitment Commodity Hedge
  3. Hedged Item Basis Adjustment
  4. Fair Value Hedge P&L
  5. Foreign Currency Risk on Non-Financial Items
  6. Commodity Risk Components
  7. Proxy Hedging
  8. Dynamic Hedging Challenges
  9. IFRS Hedge Accounting Reconciliation
  10. NorthStar IFRS Hedge Accounting Platform
M6 ASC 815 Commodity Hedge Accounting Ch 73–90 · 18 chapters

Build the parallel U.S. GAAP framework

  1. ASC 815 Architecture
  2. U.S. GAAP Cash Flow Hedges
  3. Forecast Transaction Criteria
  4. Contractually Specified Components
  5. Component-Level Commodity Hedging
  6. U.S. GAAP Hedge Documentation
  7. Effectiveness Assessment
  8. Critical Terms Match
  9. Hypothetical Derivative
  10. Dollar-Offset and Quantitative Analysis
  11. AOCI Mechanics
  12. Forecast Purchase of Inventory
  13. Forecast Sale
  14. Fair Value Hedges Under ASC 815
  15. Excluded Components
  16. Hedge Discontinuation
  17. IFRS 9 vs ASC 815 Commodity Comparison
  18. NorthStar ASC 815 Hedge Engine
M7 Embedded Derivatives & Complex Commodity Contracts Ch 91–102 · 12 chapters

Find derivative economics hiding inside physical contracts

  1. What an Embedded Derivative Is
  2. Host Contract Identification
  3. Closely Related Assessment
  4. Commodity Indexation
  5. Foreign Currency Features
  6. Caps, Floors and Price Collars
  7. Volume Optionality
  8. PPA Embedded Features
  9. LNG Pricing Formulas
  10. Hybrid Contract Accounting
  11. Reassessment of Embedded Features
  12. NorthStar Embedded Derivative Analyzer
M8 Physical Commodity Settlement, Inventory & Accounting Ch 103–112 · 10 chapters

Connect derivative accounting back to real molecules and electrons

  1. Physical Purchase Accounting
  2. Physical Sale Accounting
  3. Inventory Recognition
  4. Hedge Effects in Inventory
  5. Cost of Goods Sold
  6. Physical Settlement of Derivative-Scope Contracts
  7. Quantity Differences
  8. Quality and Location Differences
  9. Freight and Logistics Components
  10. NorthStar Physical-to-Accounting Reconciliation
M9 OCI/AOCI, Presentation, Disclosures & Close Ch 113–120 · 8 chapters

Produce financial statements that can be defended

  1. OCI Rollforward
  2. Reclassification to Earnings
  3. Basis Adjustment Tracking
  4. P&L Presentation
  5. Balance Sheet Presentation
  6. Hedge Accounting Disclosures
  7. Month-End and Quarter-End Close
  8. NorthStar Hedge Accounting Close Pack
M10 ETRM, Subledger, GL & Accounting Technology Ch 121–126 · 6 chapters

Industrialize commodity accounting

  1. ETRM Accounting Data Model
  2. Accounting Rules Engine
  3. Hedge Accounting Subledger
  4. Journal Generation & Posting
  5. ETRM-to-GL Reconciliation
  6. Building the NorthStar Commodity Accounting Platform
M11 NorthStar Hedge Accounting Crisis Capstone Ch 127–130 · 4 chapters

Explain why a commercially successful hedge produced an accounting surprise

  1. The €42M Accounting Mismatch
  2. Reconstruct Scope & Hedge Designations
  3. Rebuild OCI, P&L and Inventory
  4. Audit & Accounting Committee Defence
How it is delivered

Three ways to take Commodity Derivatives Accounting, Hedge Accounting & ETRM Integration

Self-paced is a document-and-media programme with lifetime access - no live sessions. Cohort and enterprise add live instructor-led training. Mentorship is not offered in any tier.
Feature Self-paced Cohort Enterprise
Format Written chapters, video explainers and podcasts Everything in self-paced, plus scheduled live sessions Everything in cohort, delivered privately to your team
Live sessions None Scheduled, instructor-led Scheduled, instructor-led, private
Mentorship Not offered Not offered Not offered
Access Lifetime Lifetime Lifetime for every enrolled seat
Pace Entirely your own Guided schedule with a peer group Agreed with your desk
Tailoring Fixed curriculum Fixed curriculum Sequenced to your markets, systems and governance
Best for Individuals learning around a job Individuals who want structure and deadlines Desks building the same capability together
For individuals

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The full chapter list, what each module covers, and how the tiers compare - sent to your inbox as a PDF.

For teams

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Private delivery for your desk, sequenced to your markets and systems. Tell us the team and we will scope it.

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