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Thank you so much for a great videos.My question is on Cash flow hedge
when you actually purchase goods ,what will be accounting journal for reclassifying gain/loos previousle recognised?Hi,
Thanks for the kind comments.
The purchase of the goods is dealt with in the usual manner but then the gain or loss that is held in OCI is then net-off against the purchase of goods. So if we were to have loss that was stored up in OCI we would CR OCI and DR Purchases.
Don’t get too caught up in the journals on hedging as it will only make your head hurt and it is unlikely that you will need them.
Keep up the hard work.
Thanks
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