Hedge accounting: Difference between revisions
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imported>Doug Williamson (Add "qualifying", "strict" and "including" for clarity, and add space.) |
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* [[Hedge effectiveness]] | * [[Hedge effectiveness]] | ||
* [[Hedging]] | * [[Hedging]] | ||
* [[IAS 39]] | |||
* [[IFRS 9]] | |||
* [[International Financial Reporting Standards]] | * [[International Financial Reporting Standards]] | ||
Revision as of 06:18, 27 October 2016
A system of incorporating a financial hedge into the accounting system.
Under International Financial Reporting Standards (IFRS) a qualifying hedge and the underlying transaction being hedged are accounted for separately.
Hedge accounting ensures that both items receive similar accounting treatment.
There are strict qualifications that must be satisfied in order that hedge accounting may be used, including for example that the hedge can be shown to be effective.
