BREARLEY m/j 18

Again, there is no hedge accounting - derivatives must be measured at FV (i.e. $0 at inception).

Remind yourself of the criteria for hedge accounting to apply - you cannot hedge account with a derivative - there is only one accounting treatment for all derivatives under IFRS. At inception date, FV is $0. If you win on a derivative: Dr Financial asset Cr SoPL, and then receive cash. If you lose on a derivative: Dr SoPL Cr Financial liability, and then pay cash