In this lesson, grab a front-row seat as Nick Palazzolo, CPA, delves into the intricate world of derivatives and hedge accounting. Starting with the foundations, he tackles the challenge of distinguishing between freestanding and embedded derivatives, ensuring their proper recognition in financial statements. He takes a deep dive into the criteria that need to be met for an instrument to qualify as a hedge and the impact it has on financial reporting. Moreover, Nick doesn't just stop at theory – he also rolls up his sleeves to prepare you to work through journal entries for hedge transactions and derivative financial instruments. Even if concepts like Other Comprehensive Income (OCI) might seem like a distant memory, Nick's engaging delivery ensures they're brought back to the forefront, helping illuminate the path to mastering this complex topic.