Hedge accounting and financial instruments

A significant number of non-regulated private equity/hedge funds structures have been incorporated in Luxembourg during the last couple of years, and the trend remains positive.

At the same time, the complexity of their operations has increased, generating new situations with significant technical difficulties for the accountants and financial professionals.

This dedicated accounting module is designed to provide Luxembourg accounting professionals with a comprehensive overview of the most critical accounting issues under Luxembourg GAAP identified in the private equity and hedge funds industry.

Theory, real life examples and practical exercises are combined during the training.

By the end of this training, the participants will be able to:

• understand the accounting law applicable to unregulated private equity/hedge funds structures;
• identify and address the key risk areas when accounting for those operations;
• have a better understanding of main specific instruments used in the private equity/hedge funds industry and of related accounting treatments under Luxembourg GAAP;
• make the link with existing tax structures from an accounting point of view;
• properly disclose the transactions in the annual accounts;
• apply in practice the examples analysed during the training.

• Introduction;
• Luxembourg GAAP framework and compliance requirements;
• Luxembourg accounting law (including the last changes in the accounting law);
• Preparation of annual accounts;
• Consolidation requirements;
• Luxembourg Standard Chart of Accounts;
• Electronic filing;
• Balance sheet – assets;
• Acquisition cost;
• Equity and debt investments (cost, valuation, impairment, currency);
• Balance sheet – equity;
• Multiple classes of shares, redeemable preferred shares;
• Capital contribution without issuance of shares;
• Interim dividend;
• Balance sheet – liabilities;
• Hybrid financial instruments (e.g. PEC, CPEC, PPL, …);
• Guarantees, commitments, bank covenants (risks and disclosure);
• Contribution in kind, merger liquidation, etc.
• Conclusion

An attendance certificate will be sent to participants.

This training is coordinated by Philippe Förster, lead partner of IFRS Learning Solutions of PwC Luxembourg.
It will be animated by experts of PwC Luxembourg daily involved in the implementation of the IFRS norms.
Philippe Forster is the IFRS leader for PwC Luxembourg and is partner in the Assurance practice. He has over 16 years experience in serving financial and multinational institutions providing audit and advisory services. He is part of the PwC Global Accounting and Consulting Services (GACS) and is a partner specialised in accounting for financial instruments and consolidation under IFRS.
He is member of several PwC International IFRS working groups: GACS, Financial Instruments Topical Team (FITT) and Corporate Treasury Technical Committee (CTTC). He participated to the elaboration of our global guide: Hedge accounting in practice.
Philippe graduated from HEC-University of Liège-Belgium. He is a qualified “Réviseur d’entreprises” in Luxembourg.