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Financial instruments

IFRS 9 says the gains and losses recognised in other comprehensive income are

 recycled into the statement of profit or loss if the hedged transaction results in
the recognition of a financial asset (e.g. cash)

 adjusted against the carrying amount of the asset recognised if it is a non-
financial asset (e.g. inventory or PPE).

Illustrations and further practice

Now try TYU question 21 from Chapter 11.

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