Page 6 - PowerPoint Presentation

HEDGING

Prescribed Study Material

• The chapter that deals with hedge accounting in

Descriptive Accounting, 20th edition.

• IFRS 9 Financial Instruments Chapter 6.

• Hedge accounting of the following risks are examinable on

level 3:

• a foreign exchange risk hedged with a foreign exchange contract;

and

• an interest rate risk hedged with an interest rate swap.

• Hedge accounting of any risks other than those

specified above are examinable on level 1 (knowledge

and awareness).

• IFRS 7.21A - .24G on hedge accounting disclosures are

examinable on level 2.

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