Ovido
Language
  • English
  • Spanish
  • French
  • Portuguese
  • German
  • Italian
  • Dutch
  • Swedish
Text
  • Uppercase

User

  • Log in
  • Create account
  • Upgrade to Premium
Ovido
  • Home
  • Log in
  • Create account

7. Hedge accounting

Hedge accounting definition

Hedge arrangements are entered into to protect an entity from risk. Results in closer matching of the impact on profit and FS of the hedged risk. Protects the reported profit from volatility caused by FV changes over time

Basic principles of hedge accounting under IFRS (4)

1. Derivatives must be marked to market through the income statement.

Basic principles of hedge accounting under IFRS:

IFRS recognized that hedged risks should not affect the income statement.

Basic principles of hedge accounting under IFRS:

Therefore, under circumstances hedge accounting is permitted.

Basic principles of hedge accounting under IFRS:

Hedge accounting means that FV changes of derivatives are not recognized in the income statement but parked in equity (OCI) or adjusted to the hedged asset/liability.

To what items can hedge accounting be applied? (3)

1. Financial asset / liability recognized on the BS
2. A future but committed cash flow

3. An expected future cash flow

Doesn't need to be an entire asset, can also be a risk component

Conditions for hedge accounting (5)

Formal designation and documentation of the hedge at inception, in line with the hedge strategy.

Conditions for hedge accounting:

Hedging relationship consists only of hedged items and hedging instruments that are eligible for hedge accounting.

Conditions for hedge accounting:

Economic relationship between the hedged item and the hedging instrument.

Conditions for hedge accounting:

Credit risk does not dominate the value changes.

Conditions for hedge accounting:

Hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item and the quantity of the hedged instrument that the entity actually uses to hedge
that quantity of hedged items.

Definition of fair value hedge

a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment. The gain or loss from remeasuring the hedge is recognized in P&L.

Definition cash flow hedge

a hedge of the exposure to the variability in cash flows of a recognized asset or liability or firm commitment. It will affect future reported profit or loss.

Accounting treatment of gains and losses from cash flow hedge

The portion of the gain or loss of the hedging instrument determined to be an effective hedge is recognized in equity. Any ineffective portion is reported immediately in profit or loss if the hedging instrument is a derivative.

Definition of distributed ledger

copy of the same information in multiple places.

IFRS opinion about cryptos:

if it is held for trading purposes, then it is inventory and measured at cost or realizable value

If cryptos are not held for trading purposes, then it is qualified as

intangible asset, measured at cost or revalued amount

Quiz
french
korczak
pädalol
adjektiv bakom substantiv
latin imperfect tense
glosor p1
How well do you know me?All the questions that determines how well you paid attention.
history eoy dates key events
history eoy dates stuarts
franska kropp
History eoy dates tudors
unit 5
c# SEASON TWO FINAL CHAP 15 finale pt 7
c# SEASON TWO FINAL CHAP 15 finale pt 6
Epilepsi✅
c# SEASON TWO FINAL CHAP 15 finale pt 5
c# SEASON TWO FINAL CHAP 15 finale pt 4
c# SEASON TWO FINAL CHAP 15 finale pt 3
c# SEASON TWO FINAL CHAP 15 finale pt 2
c# SEASON TWO FINAL CHAP 15 finale pt 1
c# SEASON TWO FINAL CHAP 15 pt 3
c# SEASON TWO FINAL CHAP 15 pt 2
c# SEASON TWO FINAL CHAP 15 pt 1
polcon3 4 estate
c# SEASON TWO FINAL CHAP 14 pt 3
17.2 Openbaar vervoer
c# SEASON TWO FINAL CHAP 14 pt 2
polcon2
c# SEASON TWO FINAL CHAP 14 pt 1
Riptide/formation
c# SEASON TWO FINAL CHAP 12 pt 2
media theorists
Art App
c# SEASON TWO FINAL CHAP 12 pt 1
historia
animal transport
17.1 Personenverkeer
5. Financial Instruments
ancient china
Pride & PrejudiceP&P
새 단어 15과 3급
Unité 4 Volet 3
L3 S2 : Histoire du droit social : Partie 1 : Chap 1 : rév libérale (2)
GLANDULAS SALIVALES
DISFONIA
Ingles- Wake me up song the weekend
მულტიკულტურული განათლება
Stability of Monarchy
services
atomsYear 9 content early GCSE content
ICCFla révision pour l'examen final
Premier courant: 1534-1900 - Les écrits de la Nouvelle-France
Carbohydrates
laapal
Atomic structure
particle model
mains electricity
paekisonne✅
Test tradizionale
Philo
SNC
wisowas versteht man unter der GiR und welche Bedeutung hat sie - volkswirtschaftliche Gesamtrechnung - erstellt ein quantitatives Gesamtbild des wirtschaft. - Messergebnisse ermöglichen einen Uperblick ü...
bb
Hidroterapia
Random words
jobs
RINOSINUSITIS
vocab test RIPA
Oncología Parcial
micro
biology
PY2507.6 ~ {The Frontal lobe syndrome + Agnosia & Amnesia}
INCONSCIENT
CONSCIENCE
geschichte modul 2
Natuurwetenschappen
escriptors catalans
2. Schularbeit spanisch
Läxa v.18 (2)
Géo: Le tourisme international
EMC: Comment devient-on français ?
Textbindning
Trastorns vasculars
juridik
N.Coulon
H. Mengue-Topio
physik
B.Vilette
M.Danet
Y. Courbois
TP
krevos sutartis
Echauffement 2
Echauffement 2
Td 2
Td
Psychologie
Socio
Aerobie
Echauffement
Engelska Skriv
Mein Tagesablaufmeans daily routine
vardagliga verb
LF5
spanska ord
Biomecanique 5
Czasowniki i zdania
Biomecanique 4
Biomecanique 3
Biomecanique 2
Biomecanique 1
Bio-chimie 3
Bio-Chimie 2
bio-chimie 1
Educazione alla salute
PY2507.5 2.0 ~ {Impairments of obj manipulation&recognition: Apraxia & V agnosia
Parcial
new words
Músculos da escápula
maatschappijkunde
phrase
handmaids chapters
Literatura hispanoamericana contemporánea
psicologia cognitiva
La novela española a partir de 1975
La narrativa desde 1940 hasta 1975
hej
History dates
L3 S2 : Histoire du droit social : Introduction (1)
dernier voc
Läxa v.18
psychologie
weg beschreibung
l’elettricità e il funzionamento dei circuiti elettrici.
19
Code Radio
Herrscher
revision
geografiageografia
make take and do
phrasal verbs
UTS
LUxembourg
EPISTAXIS
werkwoorden frans
VERTIGO
ANATOMIA DE NARIZ Y SNP
Kemi
latin 1st and 2nd decl. adjectives
PrüfungDemokratie, Sozialversicherungen, Gewaltenteilung etc.
Redação Oficial 📩Questoes das video aulas, apostilas e outros
lekpedagogik
CCNP1 ARS110
digestion
digestion
nutrition
nutrition
nerveux
nerveux
nerveux
nerveux
nerveux
nerveux
physio
physio
Psychologie sociale
les partie du corps étape1
biologie
carte italie
Test
Gesprächsformen