a. What is hedge accounting and what are the three types of hedges identified in AASB 9?

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b. What is a ‘hedged item’ and what is a ‘hedging instrument’?

c. What criteria must be satisfied before a hedging relationship is deemed to comply with ‘hedge accounting’ pursuant to AASB 9?

d. How are gains and losses on the hedging instrument to be treated for accounting purposes for a fair value hedge and a cash flow hedge respectively?

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Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

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Question Posted: Sep 05, 2023 02:56 PM

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a. What is hedge accounting and what are the three types of hedges identified in AASB 9?

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a A hedging transaction occurs when an entity enters an agreement that takes a position opposite to the original transaction Hedge accounting is undertaken to account for the hedging transaction The p...View the full answer

Financial Accounting

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