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HEDGING
When Is Hedge Accounting Applied? – IFRS 9.6.4
• Hedge accounting is a voluntary accounting model (if
certain requirements are met)
• Hedge accounting attempts to reduce the volatility in
the financial statements created by the repeated
adjustment of a financial instrument's value, known
as marking to market.
• Hedge accounting is applied when the hedging
relationship meets the qualifying criteria.
• It is important to note that hedge accounting is an
exception to normal recognition and measurement
requirements in IFRS.
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