In the face of the crash in global commodity prices, one of the risk management strategies that any business can adopt is hedging.
12 April 2017, 8:30AM - 5:30PM, WAT Lagos, Nigeria
Risk is an inevitable part of business. Businesses, therefore, need to develop effective and consistent risk management strategies to reduce their risk to acceptable levels. In the face of the crash in global commodity prices, currency volatility, interest rate risk and the uncertainties in many markets, one of the risk management strategies that any business can adopt is hedging. Simply put, hedging is the practice of reducing the investment risk associated with adverse price movements in an asset or market, by taking an
offsetting position in a related market or security, such as a future contract, forward, options, swaps, etc.
In 2014, the Mexican government paid $773 million as premium for a one-year hedge which gave it the right to sell 228 million barrels of oil at a guaranteed price of $76.40 per barrel between 1 December 2014 to 30 November 2015 – a period when the average price of the country’s oil basket declined to US$46.61. The country made a whopping gain of about US$6 billion from the transaction! Hedging techniques are great from a commercial point of view.
However, there are crucial tax issues that companies need to consider when evaluating the potential impact of hedging transactions on their business, to avoid the resulting gains being eroded by tax exposures. This is especially important, as there are no specific provisions in the Nigerian tax code on the taxation of hedging transactions.
This training programme will help participants understand issues such as:
In delivering the training, we will use various instructionalmodes, such as:
|N100,000 per participant, exclusive of VAT.5% discount for 3 to 4 participants and 10%discount for 5 participants and above||
Duration: 1 Day
Date: 12 April 2017
Time: 08:30am - 5:30am
|Venue/Location||Who Should Attend|
|KPMG Tower Bishop Aboyade Cole Street Victoria Island,Lagos, Nigeria.||Tax controllers and managers, Finance controllers and managers, Legal officers and managers and related functions with responsibility for tax and/or regulatory compliance and administration.|