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<h1>Understanding Hedge Accounting Strategy Under Ind AS 109: Managing Financial Risks with Recognized Assets and Liabilities</h1> Hedge accounting under Ind AS 109 is a risk management strategy aimed at reflecting an entity's risk management activities in financial statements. It involves using financial instruments to manage risks that could impact profit or loss. A hedged item can be a recognized asset, liability, firm commitment, or highly probable forecast transaction. Hedge accounting can only be applied to external transactions, except in specific cases within a group. There are different types of hedge accounting: fair value hedge, cash flow hedge, and hedge of a net investment in a foreign operation, each with specific accounting treatments to manage financial risks effectively.