The objective of hedge accounting is to represent, in the financial statements, the effect of an...
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The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's risk management activities that use financial instruments to manage exposures arising from particular risks that could affect profit or loss. Hedging instrument for hedge accounting purposes, is a designated derivative or (for a hedge of the risk of changes in foreign currency exchange rates only) a designated nonderivative financial asset or non-derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item. What's required? Do a research about Hedge Accounting & Derivatives. Explain in details these points: • Introduction about the subject. • Important definitions. The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's risk management activities that use financial instruments to manage exposures arising from particular risks that could affect profit or loss. Hedging instrument for hedge accounting purposes, is a designated derivative or (for a hedge of the risk of changes in foreign currency exchange rates only) a designated nonderivative financial asset or non-derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item. What's required? Do a research about Hedge Accounting & Derivatives. Explain in details these points: • Introduction about the subject. • Important definitions.
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Hedge accounting is an accounting method used to reflect the offsetting impact of financial instruments and transactions used to manage risks The obje... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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