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Hedging criteria and hedge effectiveness - ACCA (SBR) lectures

VIVA Subject Guide
YouTube video

17 Comments

  1. Jun
    there is no video for " disclosure" part
  2. zarnamody
    Hi Chris, great great lecture. This was very easy to understand. I have one question - in chapter 2 in the SPLOCI, OCI shows INeffective element of gain/loss on cash flow hedge - I'm assuming this is a typing error and it is Effective gain/loss ?
  3. hajar
    god bless you!
  4. kokoo
    Amazing, thank you
  5. Vishal
    So beautifully explained. God bless you..!
  6. latifad
    Thank you
  7. shivamgupta1999
    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?
  8. Aaaa
    No.it goes to OCI. Only if the hedge is overeffective, the overeffective portion go to PL under cashflow hedges
  9. Billy
    When change in hedgign instrument is $0.8m and change in item is $1m, there should be no ineffectiveness in the hedging, right?
  10. Aaaa
    Yes. There is no ineffectiveness in this case. Just that the risk has not been sufficiently hedged with hedge instrument
  11. Sholape
    Thanks Chris.
  12. tahzeeb
    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?
  13. Ronan
    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.
  14. cerebrave
    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!
  15. Quintus
    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.
  16. hassaan91
    Calm down fella
  17. Patrycja
    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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