Page 5 - PowerPoint Presentation
P. 5
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.
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