Page 5 - PowerPoint Presentation

HEDGING

Outcomes

• Understand the objective and scope of hedge accounting.

• Determine qualifying hedge items and hedge instruments.

• Apply the qualifying criteria to a potential hedging

relationship.

• Account for a transaction applying fair value hedge

accounting

• Account for a transaction applying cash flow hedge

accounting.

• Apply hedge accounting to firm commitments, highly

probable forecast transactions and recognised assets and
liabilities.

• Present and disclose hedging instruments, the risk

management strategy of an entity and the effects of

hedge accounting on financial position and performance
in the financial statements.

5