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Hedging criteria and hedge effectiveness – ACCA (SBR) lectures


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Reader Interactions

Comments

  1. vishal08 says

    December 6, 2020 at 7:40 am

    So beautifully explained. God bless you..!

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  2. latifad says

    May 5, 2020 at 2:44 pm

    Thank you

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  3. shivamgupta1999 says

    January 30, 2020 at 5:44 pm

    What will be the treatment of the difference of $.2 million in the under hedged illustration , are we suppose to take it through p/l?

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    • Amrr says

      November 7, 2020 at 1:14 am

      No.it goes to OCI. Only if the hedge is overeffective, the overeffective portion go to PL under cashflow hedges

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  4. Billy says

    July 28, 2019 at 11:45 am

    When change in hedgign instrument is $0.8m and change in item is $1m, there should be no ineffectiveness in the hedging, right?

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    • Amrr says

      November 7, 2020 at 1:12 am

      Yes. There is no ineffectiveness in this case. Just that the risk has not been sufficiently hedged with hedge instrument

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  5. mutiat28 says

    July 21, 2019 at 7:04 pm

    Thanks Chris.

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  6. tahzeeb says

    February 23, 2019 at 10:58 pm

    Hi Chris,

    In the illustration for under hedge, the item had a gain of 1m – but you mentioned to debit Asset only by 0.8m. What happens to the balance of 0.2m?

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    • rondon1989 says

      March 24, 2019 at 2:13 pm

      I don’t think anything is done with the 0.2m until the cash flow happens. When the cash flow occurs, the 1m loss goes to P&L and the 0.8m that was in OCI gets transferred to P&L.

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  7. cerebrave says

    February 15, 2019 at 3:55 pm

    Hi Chris,
    On the hedge accounting effectiveness, which is it applicable to?
    If cash flow hedge, will we know the cash flow fv to compare to?
    If FV hedge, why we then need to record the instrument’s mtm to oci for the effective part?

    I suppose its for cash flow hedge isnt it?

    Thanks!

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  8. quintusking says

    January 20, 2019 at 12:23 pm

    Am I missing something or are these not in the notes? As with the examples in the previous hedging videos. If they’re not in the notes, why? Not really complaining but I would really like to understand, because it means we need to take extra notes, which is an unnecessary move since you could’ve easily added them in the notes.

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    • hassaan91 says

      September 3, 2019 at 6:44 pm

      Calm down fella

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    • patrycjajot says

      November 19, 2020 at 4:29 pm

      The resources on this page are completely free, on top of that you can get discount codes for study materials with ACCA approved providers. Are you actually complaining that you have to take some notes?

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