Hedge accounting aligns recognition of hedging instruments and hedged items to prevent accounting mismatches and reflect risk management. Hedge accounting aligns recognition of gains and losses on designated hedging instruments and hedged items to reflect risk management, avoiding mismatches. Eligible hedged items include recognised assets or liabilities, unrecognised firm commitments, highly probable forecast transactions, groups or components of items, and certain aggregated exposures; they must be reliably measurable. Fair value hedges record fair value changes through profit or loss, cash flow hedges record hedge gains and losses in OCI and reclassify them when the hedged item affects profit or loss, and net investment hedges are treated similarly to cash flow hedges. Hedging instruments are accounted for under derivative accounting rules.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Hedge accounting aligns recognition of hedging instruments and hedged items to prevent accounting mismatches and reflect risk management.
Hedge accounting aligns recognition of gains and losses on designated hedging instruments and hedged items to reflect risk management, avoiding mismatches. Eligible hedged items include recognised assets or liabilities, unrecognised firm commitments, highly probable forecast transactions, groups or components of items, and certain aggregated exposures; they must be reliably measurable. Fair value hedges record fair value changes through profit or loss, cash flow hedges record hedge gains and losses in OCI and reclassify them when the hedged item affects profit or loss, and net investment hedges are treated similarly to cash flow hedges. Hedging instruments are accounted for under derivative accounting rules.
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