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May 5, 2020 at 2:44 pm
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?
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
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?
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
July 21, 2019 at 7:04 pm
February 23, 2019 at 10:58 pm
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?
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.
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?
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.
September 3, 2019 at 6:44 pm
Calm down fella
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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